PNB RD Scheme: Deposit ₹10,000 and Receive ₹7,09,902 on Maturity

Investing ₹10,000 monthly in Punjab National Bank’s (PNB) Recurring Deposit (RD) scheme can yield a substantial maturity amount, thanks to the power of compounding interest. This article provides a detailed breakdown of how the scheme works, its benefits, and a step-by-step guide to investing in it.

PNB RD Scheme

PNB’s Recurring Deposit (RD) scheme is an excellent investment option for individuals looking for a secure and disciplined savings plan. With a monthly deposit of ₹10,000 for 5 years at 6.50% interest, investors can accumulate ₹7,09,902, making this a profitable and risk-free choice.

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What is the PNB RD Scheme?

A Recurring Deposit (RD) is a savings scheme where individuals deposit a fixed amount monthly for a predetermined tenure, earning interest over time. PNB’s RD scheme offers a secure and flexible way to grow savings with guaranteed returns.

Key Features of PNB RD Scheme

1. Flexible Tenure: Choose from 6 months to 10 years.
2. Competitive Interest Rates: Up to 6.50% per annum.
3. Government-backed Security: Ensures safe and risk-free returns.
4. Minimum Deposit: Start with as low as ₹100 per month.
5. Premature Withdrawal: Available with applicable penalties.

PNB RD Scheme: How is the Maturity Amount Calculated?

The maturity amount of an RD is determined using the compounded quarterly interest formula:

Where:

1. M = Maturity amount
2. R = Monthly deposit (₹10,000)
3. i = Quarterly interest rate (6.50%/4 = 0.01625)
4. n = Total number of quarters (20 for a 5-year RD)

Using these values, the maturity amount calculates to ₹7,09,902, including ₹1,09,902 as interest earnings.

Also Check: PNB RD Scheme: Invest ₹3,500 and Get Lakhs in Returns After These Many Years

Benefits of Investing in PNB RD Scheme

1. Safe & Secure Investment

PNB is a government-backed bank, ensuring the safety of your deposits and assured returns.

2. Disciplined Savings Habit

Recurring deposits encourage regular saving habits, making them ideal for students, salaried individuals, and self-employed professionals.

3. Higher Interest Than Savings Accounts

RDs offer better interest rates than standard savings accounts, maximizing returns.

4. Easy Withdrawal & Loan Facility

1. Premature withdrawal available with penalty.
2. Loan/Overdraft facility against RD balance.

Step-by-Step Guide to Investing in PNB RD Scheme

1. Choose Your RD Tenure & Amount

1. Decide the monthly deposit amount.
2. Choose a tenure from 6 months to 10 years.

2. Open an RD Account

You can open an RD account through:

1. PNB Net Banking or Mobile App.
2. Visiting a PNB branch with KYC documents.

3. Deposit Money Monthly

Ensure you deposit the fixed amount every month to benefit from compound interest.

4. Track Your RD Growth

Use PNB’s online banking to monitor your interest earnings & balance.

5. Receive the Maturity Amount

At the end of the tenure, the total maturity amount is credited to your linked bank account.

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PNB RD Scheme (FAQs)