Tag: PNB

SBI vs PNB vs BOB- 5 Year FD Scheme: Which bank can give you higher returns on investment of Rs 1 lakh and Rs 2 lakh?

Fixed Deposit Schemes Offered by PSU Banks: A Comparison of SBI, PNB, and BoB

Public Sector Undertaking (PSU) banks like State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BoB) are known for their trustworthy fixed deposit (FD) schemes. These banks offer a range of fixed deposit options, including attractive special FDs such as SBI Amrit Vrishti and BoB Utsav. Fixed deposits allow individuals to invest a lump sum amount for a specified duration, earning a guaranteed interest over the term. Due to their safety and assured returns, FDs are often preferred over traditional savings accounts, as they typically offer higher interest rates. Moreover, investors can choose to receive interest payments on varying schedules: monthly, quarterly, or half-yearly.

In this article, we will compare the FD schemes of three prominent PSU banks: SBI, PNB, and BoB. We will analyze the potential returns on investments of ₹1 lakh and ₹2 lakh for a tenure of five years.

SBI 5-Year Fixed Deposit Rate

SBI offers an interest rate of 6.50% for their 5-year fixed deposit. Senior citizens can avail of a higher interest rate of 7.50%.

SBI: Maturity Amount on ₹1 Lakh and ₹2 Lakh Investment

  • For ₹1 lakh investment:
  • For ₹2 lakh investment:
    • Maturity amount: ₹2,76,084
    • Senior citizens‘ maturity amount: ₹2,89,990

BoB 5-Year Fixed Deposit Rate

Bank of Baroda offers a competitive interest rate of 6.80% on their 5-year FDs. Senior citizens earn an interest rate of 7.40%.

BoB: Maturity Amount on ₹1 Lakh and ₹2 Lakh Investment

  • For ₹1 lakh investment:
    • Maturity amount: ₹1,40,094
    • Senior citizens‘ maturity amount: ₹1,44,285
  • For ₹2 lakh investment:
    • Maturity amount: ₹2,80,188
    • Senior citizens‘ maturity amount: ₹2,88,570

PNB 5-Year Fixed Deposit Rate

Punjab National Bank also offers a fixed deposit interest rate of 6.50% for the 5-year term. Senior citizens receive a rate of 7.00%.

PNB: Maturity Amount on ₹1 Lakh and ₹2 Lakh Investment

  • For ₹1 lakh investment:
    • Maturity amount: ₹1,38,042
    • Senior citizens‘ maturity amount: ₹1,41,478
  • For ₹2 lakh investment:
    • Maturity amount: ₹2,76,084
    • Senior citizens’ maturity amount: ₹2,82,956

Conclusion

When selecting a fixed deposit scheme, it is essential to consider the interest rates and the maturity amounts offered by different banks. Among SBI, PNB, and BoB, the interest rates vary slightly, with BoB providing a marginally higher rate compared to others. Investors, particularly senior citizens, should evaluate their options carefully based on their financial goals and requirements.

Choosing the right FD scheme can lead to substantial returns over time, making it a favorable option for safe and secure investments.

Attention PNB Bank Customers: PNB Issues Critical Notice for Sovereign Gold Bonds or RBI Bonds

Punjab National Bank (PNB) has released an essential advisory for customers holding Sovereign Gold Bonds (SGB) or RBI Bonds. This announcement, made via the bank’s X Handler on December 9, specifically targets investors with pending bond interest payments or those whose bonds have matured or are approaching maturity. PNB encourages these customers to promptly visit their respective branches to verify and update their bank account details to prevent any potential payment issues.

SGBs are securities offered by the Reserve Bank of India (RBI) on behalf of the Government. They provide an alternative to physical gold ownership, aimed at reducing the demand for imported physical gold. SGBs are denominated in grams of gold, with a minimum investment of 1 gram and a maximum of 4 kg allowed per fiscal year. The bonds have an eight-year term, with an option to exit after the fifth year, and carry a fixed annual interest rate of 2.5%, payable every two years.

Key Highlights of the Advisory:

  • Customers holding SGBs or RBI Bonds must verify that their registered bank account details are accurate. PNB stressed that payment delays could occur if the account number is incorrect or if the registered account has been closed.
  • For customers with unclaimed interest or principal amounts older than six years, it is essential to follow guidelines set by the Reserve Bank of India (RBI). These guidelines can be accessed on the RBI or PNB’s official website.
  • PNB specifically advises customers against closing their operative accounts before redeeming their bonds. Those needing to close accounts for urgent reasons should provide alternative bank account details before initiating the closure. Failure to comply may lead to non-credit of redemption amounts and interest payments.

Importance of This Advisory:

This advisory is crucial for investors to avoid complications or delays in receiving their payments. PNB has clarified that it will not be responsible for errors in bank account details or for issues arising from the premature closure of accounts. Customers are encouraged to confirm their account information and follow the advisory to ensure a smooth experience. For assistance, customers can contact PNB’s toll-free numbers, 1800 1800 and 1800 2021, for queries regarding their investments or the advisory.

Senior Citizens FD Interest Rates: SBI, PNB, HDFC, BoB, Axis Bank

Maximizing Your Returns with Senior Citizen Fixed Deposits

Fixed Deposits are a popular investment choice due to their safety and guaranteed returns. For senior citizens, these investments represent a reliable source of income. Additionally, Senior Citizen Fixed Deposit schemes offer slightly higher interest rates, making them an attractive option for elderly individuals.

When considering Senior Citizen Fixed Deposits, one of the most important factors to assess is the interest rate offered by different banks. Let’s take a look at the current interest rates and tenures offered by some prominent banks in India:

  • Axis Bank
    • Interest Rate: 7.75%
    • Tenure: 5 years to 10 years
  • Canara Bank
    • Interest Rate: 7.75%
    • Tenure: 444 days
  • Bank of India
    • Interest Rate: 7.8%
    • Tenure: 666 days
  • Punjab National Bank
    • Interest Rate: 7.75%
    • Tenure: 400 days
  • HDFC Bank
    • Interest Rate: 7.9%
    • Tenure: 4 Year 7 Months (55 months)
  • State Bank of India
    • Interest Rate: 7.75%
    • Tenure: 444 days

It’s essential to carefully consider the tenure offered by each bank, as this can significantly impact the overall returns on your investment. By comparing the interest rates and tenures of various banks, senior citizens can make informed decisions to maximize their returns from Fixed Deposits.

ED is Auctioning Properties Including Nirav Modi’s Flat

The Enforcement Directorate (ED) has started the legal process for auctioning the properties of fugitive diamantaire Nirav Modi. Under this, the process of auctioning three flats worth 110 crores in his Worli-based Samudra Mahal, a flat in Breach Candy, Nirav Modi’s Alibaug bungalow, a wind mill and a solar power project has been started.

Let us inform here that Nirav Modi had cheated PNB by submitting inflated import bills, requesting release of payment to exporters in Dubai and Hong Kong through Letter of Undertaking. But all these companies were fake companies operated under the leadership of Nirav Modi. The matter was revealed in 2018, after which he fled the country.

Enforcement Directorate is auctioning Nirav Modi’s properties for recovery. In early June also, the ED had auctioned many things related to Nirav Modi. These included two luxury watches worth Rs 90 lakh. However, another watch was also worth Rs 20 lakh. According to the report, around Rs 130 crore has been recovered by the ED from the auction of paintings, watches and vehicles. 

Alert: This Big Change is Happening in Punjab National Bank From Today

Cheque payment verification will be mandatory

It is worth noting that since this rule applicable in PNB, it will be compulsorily verified at the time of issuance of cheque for payment. Without verification the cheque will not be passed under any circumstances. That is, this cheque will be returned without verification. Let us inform that before Punjab National Bank, Bank of Baroda had implemented the positive pay-system rule on its own on February 1.

Banking fraud will be curbed

Let us tell you that there has been a significant increase in the cases of banking fraud in the past. In view of the increasing number of such cases, banks are changing their rules with the aim of protecting their customers. Under the new rule, now while issuing a PNB cheque to anyone, you will have to share the details of the cheque date, beneficiary name, account number, amount mentioned in the cheque electronically through internet banking, ATM or mobile banking or SMS. After its verification, the cheque will be cleared quickly and there will be no possibility of fraud.

These Eight Rules Changing From April Will Have Direct Impact On Your Pocket

Tax on PF account

From April 1, the existing PF account can be divided into two parts, which will also be taxed. According to the rules, there will be no tax on contribution up to Rs 2.5 lakh in PF account. Interest earned on contributions above this will be taxed.

GST e-Invoicing

The Central Board of Indirect Taxes and Customs has reduced the turnover limit for issuance of e-invoice under GST to Rs 20 crore. Earlier this limit was Rs 50 crore. The new rules of GST are coming into effect from April 1.

Mutual Funds

You will not be able to make payments for investments in mutual funds by cheque, bank draft or any other physical medium. Mutual fund transaction aggregation portal MF Utilities (MFU) is discontinuing cheque-demand draft payment facility with effect from March 31. To invest in mutual funds from April 1, payment will have to be made through UPI or net banking.

Post Office Rules 

The rules of post office are about to change. The interest earned on the Post Office Monthly Income Scheme, Senior Citizen Savings Account and Term Deposit Account will be credited directly to the account. Interest will no longer be available in cash. Therefore, from April 1, a savings account or bank account will have to be opened in the post office.

Shock to Home Buyers 

First time home buyers will not get the benefit of 80EEA from April 1. In Budget-2021, the tax exemption under this section was extended till March 31. According to this, if the value of the house is less than 45 lakhs, then you can claim tax exemption of up to 1.50 lakhs on home loan interest payment. Now this facility will not be available.

Special FD Scheme

For senior citizens; SBI, ICICI Bank, Bank of Baroda, HDFC Bank had started a special fixed deposit (FD) scheme in Corona period. Senior citizens get more benefit in this. However, HDFC Bank and Bank of Baroda may discontinue this scheme from April 1.

Cryptocurrency Tax

From April 1, the tax rules on cryptocurrencies may also change. The Finance Minister had said that all virtual digital assets or crypto assets will be taxed at 30%. Apart from this, whenever someone sells a crypto asset, TDS will be deducted at one percent of its sale.

Axis Bank and PNB 

Axis Bank have increased the minimum balance limit in savings account from Rs 10,000 to Rs 12,000. The bank has also changed the stipulated limit of free cash withdrawal to four times or Rs 1.5 lakh. On the other hand, PNB is implementing the Positive Pay System (PPS) rule from April 4. Under this, verification will be necessary for cheque of Rs 10 lakh and above.

Attention PNB Customers: A New Way To Protect Against Fraud

Public sector Punjab National Bank (PNB) will settle cheques of valued Rs 10 lakh or more from April 4 onwards only after re-verification from the issuer. According to the news of PTI, PNB on Tuesday said that this step has been taken to protect bank customers from the possibility of fraud in case of large amount cheques. Under this, Positive Payment System (PPS) will be necessary from April 4, 2022.

This system came into effect from January 1, 2021

According to the news and guidelines of the Reserve Bank of India, the system of CTS (Cheque Truncation System) clearing of Rs 50,000 and above was implemented from January 1, 2021. CTS is the mechanism of clearing of cheques electronically. RBI has said that though it is up to the account holder to avail the facility, banks may consider making it mandatory for clearance of cheques of Rs 5 lakh and above.

NPCI has prepared the system

PNB said that from next month, a positive payment system will be made necessary for the clearance of cheques of Rs 10 lakh and above. This system has been prepared by the National Payments Corporation of India (NPCI). Under this arrangement, customers issuing high value cheques are required to re-verify certain essential information. Those details are reconciled before settlement of the cheque for payment.

These details have to be given

Customers will have to share details such as account number, cheque number, cheque alpha code, date of issue, amount, beneficiary name for settlement of high value cheques under PPS. According to the bank, only cheques that are registered under PPS will be accepted under the dispute resolution mechanism.

Pre-Market Information – RBL Bank, PNB, BHEL, Colgate-Palmolive, Route Mobiles, JSPL, Raymond and other stocks will be in focus today

The US markets ended in the red on Wednesday. Nasdaq ended flat. However, The US Federal Reserve’s rate hike signals made the benchmark indices to come off from respective highs. Fed chairman said the first rate hike might be in March. Asian Markets fell after Fed remarks. SGX Nifty indicates a negative start for Indian markets. 

The following stocks will be in focus today: 

KPIT Technologies: The company to consider interim dividend declaration on January 31.

SRF: The company approves a project to create Pharma Intermediaries Plant for undertaking precursor processes to produce Pharma products at Dahej at a cost of Rs.190 Cr.

Wipro: The company acquired an additional stake of 13.3% in Encore Theme Tech.

Indiabulls Real Estate: The company posted loss at Rs. 87 Cr. in Q3FY22 against profit of Rs 80.6 crore in Q3FY21. Its revenue fell to Rs.322.8 Cr. from Rs.721.6 Cr. YoY.

Raymond: The company reported higher profit at Rs. 101 Cr. in Q3FY22 against Rs.22.1 Cr. in Q3FY21. Its revenue jumped to Rs.1,843.3 Cr. from Rs.1,243.4 Cr., YoY. The company will demerge its real estate operations into subsidiary.

Jindal Steel & Power: ICRA upgrades its rating to to AA –  with ‘Stable’ outlook from A+ with ‘Positive’ outlook, on the long term bank facilities and has reaffirmed the rating of A1+ for short term bank facilities of the company.

United Spirits: The company reported profit at Rs. 291.1 Cr. in Q3FY22 against Rs.230 Cr. in Q3FY21. Its revenue jumped to Rs.2,884.2 Cr. from Rs.2,489 Cr. YoY.

The following stocks will post their Q3 earnings today:

Canara Bank, Punjab National Bank, RBL Bank, Arvind, Accelya Solutions India, Aurionpro Solutions, Birlasoft, Coforge, Bharat Heavy Electricals, Colgate-Palmolive, Indus Towers, Fino Payments Bank, Laurus Labs, Motilal Oswal Financial Services, LIC Housing Finance, Nippon Life India Asset Management, Route Mobile, Wabco India, Wockhardt, Mahindra Logistics, and others.