Fixed deposit is a simple yet effective way to save money. It gives you higher interest rates than many other financial instruments. Although there are other safe investment options where you can get high returns, like Public Provident Fund, Senior Citizens’ Saving Scheme, Post Office Monthly Interest Scheme, and the likes, no financial instrument is as liquid as a fixed deposit. You can invest any time and pull out the money whenever you need.
In India, there are three ways of creating an FD account.
- Visit a bank and open a savings or current account. After the account gets activated, you can open an FD account. The money will get debited from your savings or current account.
- Visit the website or branch of a non-banking financial company and express the desire to open an FD account. The customer care officer will guide you through the process, either in person or over the phone.
- Visit the website or branch of a housing finance company, such as PNB Housing Finance, and place a request. If you visit the branch, the customer care officer will guide you through the process. Alternatively, you may opt for doorstep service delivery offered by PNB Housing, where the company send an officer to your residence or officer and help you fill-up the form and submit the cheque.
Here is how a PNB Housing FD account can give you significant benefits:
Optimal Safety
Let’s get to the fact first – if you want to get the highest interest rate on FD, you may have to look beyond banks. PNB Housing FD account comes not only with industry-best FD interest rates but also the investment is one hundred per cent safe. PNB Housing Finance has been in existence from 1988, and its fixed deposits have been rated as FAA+ by CRISIL and AA by CARE. Hence, you can get the highest interest on FD without worrying about the security of your hard-earned money.
Industry-Best Interest Rates
The highest interest on FD offered by PNB Housing is 6.70%. Additionally, you can get 0.25% extra interest every year if your age is above 60. PNB Housing FD account holders get two interest options – cumulative and non-cumulative. The non-cumulative mode allows you to get interest every month, quarter, half-yearly, or annually. In the cumulative mode, you can choose a maturity term between one year and ten years. The highest yield to maturity for a ten-years’ cumulative fixed deposit is 9.13%.
Liquidity
Besides safety and high interest rates, another advantage of PNB Housing FD account is that you can withdraw the money lying in the account any time you need money. Hence, you do not need to opt for a costly loan when you have an FD account. However, the interest rate may be around 1% lower than the prevailing interest rate.
Loan Facility
Generally, investors consider closing the account prematurely when they require money. However, PNB Housing also offers you the facility to avail loan against an FD account. You can avail up to 75% of the principal amount lying in your account at an interest rate marginally higher than the prevailing highest FD interest rate.
ConclusionA PNB Housing FD account is the best way to grow your capital and secure your future. You can save TDS of up to INR 5,000 every year and watch your capital grow at a faster pace than ever.
