Categories: Fixed DepositFixed IncomePSU/Govt FD

PNB Housing Finance Ltd Deposit Schemes – August 2012 Review

PNB Housing Deposit Scheme - August 2012

PNB Housing Finance Ltd. was incorporated in 1988 and operates as a subsidiary of Punjab National Bank. It is based in New Delhi, India with branches in all major cities in India. PNB Housing Finance, Ltd. offers loans for purchase/construction of property, flat, houses, and apartments to resident Indians and NRIs.

Features and Benefits of PNB Housing Finance Ltd Deposit Schemes:

FAA+ rating by CRISIL, which means High safety
No tax to be deducted at source on interest income upto Rs. 5,000/- in a financial year
Loan facility up to 75% of deposit available from all branches of the company and also of Punjab National Bank
Encashment of cheques in respect of interest and repayment of deposits AT PAR by selected branches of PNB
Premature cancellation allowed after 3 months on the discretion of the company
Nomination Facility available as per NHB guidelines
The interest would be payable half yearly for Regular Payout FD and would be compounded half yearly in case of cumulative option.
Minimum Amount – Rs. 20,000 for Cumulative option and Rs. 10,000 for regular interest payout

Period (Months)	Interest Rates	Yield for Cumulative Option
12 and 24 Months	9.50%	9.73% & 10.20% respectively
36, 48 and 60 Months	9.75%	11.02%, 11.58% & 12.19% respectively
72 and 84 Months	9.50%	12.42% & 13.07% respectively

Interest rate for Senior citizens age above 60 years (as on day of deposit) and PNB Housing Staff shall be at 0.50% higher than above rates.

Premature Withdrawal:

The deposit can be withdrawn prematurely only after completion of 3 months. Below table shows the penalty for withdrawal

Duration	Penalty
Up to 3 months from date of deposit	Cannot withdraw
3 – 6 Months	No Interest would be payable
6 – 12 months	3% less than the interest rate prescribed
After 12 months but before maturity	2% less than the interest rate prescribed

Should you Invest?

PNB Housing Finance Ltd is offering competitive interest rates to banks for higher maturity duration of 3 Years or more. As far as banks are concerned they are offering less than 9.3% for FDs of 3 years or more, which is expected to go down further as in case of SBI. On the safety of capital front, being a Government owned organization, its completely safe. It makes sense to look to PNB Housing as an option for higher tenure deposits. The staff of PNB Housing should obviously go for it due to extra 0.5% interest offered.

You can find all further details in the advertisement below:

PNB Housing Deposit Scheme – August 2012

Amit

Hi Readers! I am Amit, the mind behind Apnaplan.com I am MBA from NITIE, Mumbai and BIT from Delhi University. This blog is my online diary where I write about my tryst with my investment decisions. In the 400+ posts on this blog you will find articles on Personal Financial Planning, Investments, Retirement Planning, Insurance, Loans, Fixed Deposits, Provident Funds, Stock Markets, Gold, Silver, Real Estate Investment, Credit Cards, Credit Score, Taxation, Inheritance Planning and Reviews on various Financial Products.