A fixed deposit is a type of savings account that provides investors a higher rate of interest on that amount. There is a fixed and guaranteed return of amount over a specific time. It is a safe and secure instrument for investors. The interest on fixed deposit is higher than compared to the normal savings accounts.
Features of Fixed Deposit(FD):
- Guaranteed Returns
- Deposit amount can be easily renewed
- The higher interest rate for senior citizens
- Nomination facility
- The coming Interests is optional( monthly/ quarterly/ annually).
- High level of safety.
Types of Fixed Deposit:
There are two types of fixed deposit under PNB Housing-
- Cumulative Fixed Deposit: It offers interest at the end of the maturity. It helps you to create capital as gives you higher returns because the interest is calculated quarterly and is added to the principal.
- Non-cumulative Fixed Deposit: It offers interest is paid out as per monthly, quarterly, half-yearly, or annually i.e, totally depends upon the investor’s choice. Investors get the earnings during the term of the deposit but the principal is at maturity time.
Eligibility Criteria of fixed deposit(FD):
If you are going to apply for opening a fixed deposit account in PNB housing than you have to prepare the document requirement for fixed deposit ready.
You must have to submit the duly filled application form.
- Age- The minimum age criteria is 18 years.
- Nationality- The nationality must be Indian.
- NRI Scheme- There are also schemes available for NRI(Non-Resident Indians) fixed deposits.
- The Minimum Amount deposit of ₹ 25,000 is for monthly income schemes.
- The Minimum Amount deposit of ₹ 10,000 is for other schemes.
- Documents - The applicant must have the valid documents which are required for the complete process.
Additional Read: FD vs RD : which one better
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