In India, there are several investment options for people willing to save. However, an FD outshines most other investment options.
But, choosing the best fixed deposit instrument is not that easy. Finding a credible and reputed financial institution that also offers the best FD interest rates is even more challenging. PNB Housing is an exception in this regard. It has a legacy of three decades and the latest FD rates offered by the company are much higher than the average FD rates offered by other financial institutions.
Check the reasons that make PNB Housing FD one of the best fixed deposit instruments in the country.
High Safety Rating
PNB Housing fixed deposits are given FAA+ rating by CRISIL and AA by CARE. CRISIL and CARE evaluate a deposit-accepting financial institution on several parameters, such as reputation, nature of income, market capitalisation, balance sheet, financial condition, track record, etc., and issue ratings. Generally, CRISIL FAA+ and CARE AA rating are regarded as the benchmark. Hence, PNB Housing fixed deposit is the safest way to earn high returns from your capital.
No TDS Deduction
The interest you earn from a PNB Housing fixed deposit is exempt from Tax Deducted at Source (TDS), up to a limit of INR 5,000. Hence, the effective returns from your investment will be higher than what the latest FD rates enable you to earn.
High Rate of Interest
The latest FD rates offered by PNB Housing are much higher than the prevailing standard interest rates offered by other financial institutions. For example, with a 10-year cumulative fixed deposit, you can get up to 9.13% yield to maturity. If you choose a non-cumulative fixed deposit for the same term, the interest rate will be 6.70%. Additionally, senior citizens get 0.25% extra interest every year.
Premature Cancellation
While investment options like Public Provident Fund, Senior Citizens’ Saving Scheme, and Prime Minister Vaya Vandana Yojana offer higher interest rates than the latest FD rates, you cannot withdraw the money prematurely. In contrast, PNB Housing fixed deposit is one hundred per cent liquid, and you can apply for premature cancellation of the FD whenever there is a need for money. However, in the case of premature cancellation, the effective interest rate will be lower than the actual interest rate.
Loan Facility
A fixed deposit is a long-term investment. You invest in an FD to fulfil life’s major goals. Cancelling the FD prematurely will negatively affect your financial goals. PNB Housing offers a better option. You can apply for a loan of up to 75% of the principal amount when you need money urgently. The interest rate will be only 2% higher than the highest prevailing FD rate. Hence, if you invest in a PNB Housing fixed deposit, you may not need to avail a costly high-interest loan.
Doorstep Service Facility
One of the biggest benefits of PNB Housing fixed deposit is the facility to open an FD account and get the latest FD rates without moving out of your home. You can conveniently place the request online, and the company will send its representative to your house. The representative will help you fill-up the application form, collect the documents, and hand over the FD receipt.
Conclusion
A PNB Housing fixed deposit account can offer you financial freedom. Unlike financial instruments like PPF, SCSS, MIS, or PMVVY, there is no upper limit to the amount you can invest. With the latest FD rates being among the highest offered by Indian financial institutions, now is the best time to open an FD account.