Fixed deposits(FD) are an integral part of most investment portfolios. FDs are popular among people of different age groups and economic strata due to their simplicity and being a safe investment option.
A Brief About PNB Housing Fixed Deposits
PNB Housing, a well-known name in the lending segment, offers fixed deposits also to its customers. Customers can get deposits for different tenures and amounts based on their choice. The process for applying for an FD is hassle-free, with minimal documentation required.
PNB housing fixed deposits offer many advantages which make them better than other investment products. Fixed Deposit by PNB Housing scores above other investment options due to a host of reasons; we discuss a few of them here.
1. High Ratings
Though fixed deposits are a secure investment product, ratings by independent agencies reinforce investor trust. PNB housing finance FDs have a CRISIL FAA+/Negative rating and AA/Stable by CARE. This indicates the highest level of safety. As an investor, you can be assured about the security of your investment.
2. Competitive Interest Rates
PNB Housing fixed deposit rate is competitive compared to other investment options. The interest rate ranges from 5.75% to 6.85% (depending on the FD type and tenure), and senior citizens get 0.25% higher. You can be sure of getting high returns on your investment.
3. Assured Returns
Unlike market-linked products, a PNB housing fixed deposit offers fixed returns. This feature is attractive to those looking for regular income, especially retired individuals and senior citizens.
Thus, depending on your requirements, you can choose a cumulative option where you get the interest at the end of the term, or you could opt for a non-cumulative option where the interest is paid to you at regular intervals. In the non-cumulative option, you have the choice to take interest monthly, quarterly or yearly.
4. Flexible Term and Deposit Amount
PNB housing FDs are better than other investment options owing to their flexibility. You can choose a term ranging from 1 year up to 10 years. This choice gives you a lot of flexibility, and you can select the FD period as per your requirements and financial plans.
You can start a deposit with Rs. 10000, and there is no upper limit.
5. Premature Withdrawal Facility
You may require funds due to various unforeseen circumstances or sometimes fall short of funds for buying a house or planning a holiday. In such a situation, you can make a premature withdrawal from your FD rather than take a loan.
Fixed Deposit by PNB Housing has the option to withdraw funds before the maturity date. There is a lock-in period of 3 months commencing from the date of your FD, after which you can withdraw funds if required. The interest rate is adjusted depending on the period you have stayed invested and the lender policy.
6. Loan Against FD
Another feature of the FD that can help you during an emergency is the loan against FD. If required, you can apply for a loan against the deposit rather than withdrawing it. The bank allows a loan of up to 75% of the deposit amount.
You can avail of a loan for cumulative as well as non-cumulative FDs. The process of a loan against FD is faster and simpler than applying for other loans or approaching a new lender. The interest charged will be 2% higher than the PNB Housing fixed deposit rate.
7. Credit Card Against FD
Not only can you get a loan against your deposit, but you can get a credit card too. The credit card issued against your FD is a secured card. The limit of the card is a proportion of the deposit amount. You continue to earn the same interest on your FD.
This feature is especially useful for those who find it challenging to get a credit card due to a low CIBIL score or lack of documentation.
8. Wide Network and Door Step Services
PNB housing has a pan-Indian network of 94 branches across 64 cities and towns in the country. You can avail dedicated services irrespective of where you are in India.
They also offer doorstep services which add to your convenience.
The Takeaway
As an investor, you have a wide range of options to choose from and include in your portfolio. It is always a good idea to understand your requirements and the product features well to select a product that suits you. Hopefully, the above discussion can help you make an informed choice.
