Even today, Fixed Deposit (FD) is considered to be the most reliable and safe option for Indian families. If you also want to increase your hard-earned money without any risk, then Punjab National Bank (PNB) has brought a great opportunity for you. The bank is offering attractive interest rates on its long term FD scheme, through which you can earn fixed returns worth lakhs of rupees. Let us understand that if you make an FD of ₹ 2,00,000 in PNB for 10 years, then how much money will you get in your hand on maturity.
Punjab National Bank provides FD facility to its customers ranging from 7 days to 10 years. The interest rates of the bank start from 3% and go up to 7.40%. However, for investors who want to add money for their future or children’s education, schemes with maturity of 10 years are the most popular. In this, you get the benefit of compounding (interest on interest), which turns your small amount into a big fund.
Calculation for ordinary citizens
If you are a normal citizen (below 60 years of age) and deposit ₹2,00,000 in PNB, then the bank is offering you 6% annual interest.
- Total investment: ₹2,00,000
- Interest Rate: 6%
- Total interest: ₹1,62,804
- Total amount on maturity: ₹3,62,804 i.e. in 10 years you will get a return of approximately 81% on your deposit amount only in the form of interest.
Calculation for Senior Citizens and Very Senior Citizens
PNB takes special care of its senior citizens (above 60 years) and very senior citizens (above 80 years). The interest rates for these are higher than normal. Senior citizens are being given 6.80% interest on 10 year FD.
- Total investment: ₹2,00,000
- Interest Rate: 6.80%
- Total interest: ₹1,92,526
- Total amount on maturity: ₹3,92,526 This scheme is no less than a jackpot for senior citizens, as here an investment of ₹2 lakh grows to almost ₹4 lakh.
Why choose 10 year FD?
Interest rates on special FDs like 444 days may be a bit higher in the market, but financial experts recommend longer term FDs. The biggest reason for this is that you lock your interest rate for 10 years. Even if banks reduce interest rates in the future, you will still continue to get the fixed interest rate.
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