Well, if you’re searching for a safe yet high-yielding investment to secure your future or save for a large expense, the 506-day fixed deposit (FD) of Punjab National Bank (PNB) could be it.
The FD attracts good interest and guarantees returns, assuring that your money will grow securely. Let us check how much you can make with investments of INR 4 lakh in this scheme.
Understanding the 506-Day FD Scheme from PNB
PNB’s 506-day FD is a medium-term investment alternative for 1 year and 141 days with guaranteed returns. This plan provides an annual interest rate of 6.75% as well as a senior citizen rate of 7.25% for 60 years and older.
It is an FD best suited for investors who are risk-averse and are looking for a steady growth which will not be rocked by market volatility. With compounding interest, it increases the returns on investment ands makes it an attractive savings option.
Calculating Returns on ₹4 Lakh Investment
Wondering how much you can earn by investing ₹4 lakh in PNB’s 506-day FD? Here’s a breakdown:
- Investment Amount: ₹4,00,000
- Interest Rate: 6.75% per annum (7.25% for senior citizens)
- Tenure: 506 days (1.39 years)
- Interest Type: Compounded quarterly (interest earned on interest)
Estimated Returns Calculation
| Investment (₹) | Interest Rate (%) | Tenure | Total Return (₹) | Interest Earned (₹) |
|---|---|---|---|---|
| 4,00,000 | 6.75 | 506 days | 4,39,080 | 39,080 |
By investing ₹4 lakh, you can earn ₹39,080 as interest, bringing your total maturity amount to ₹4,39,080. Senior citizens will earn even more due to the higher interest rate.
Main advantages of PNB’s 506-Day FD
This FD has the assurance of being secure under RBI provisions, giving you safety.
- Fixed and Best ROI: Fixed returns at 6.75% (for 7.25 %for seniors) cannot be beaten in the fluctuating markets.
- Quarterly Compounding: Without changing the interest income, the money depends on the interest earned on the matured interest.
- Flexible terms and conditions: Considerable liquidity is provided in medium conventional terms of 506 days.
- Tax benefits: Section 80C permits tax concessions for 5-year FDs.
Is this FD good for you?
If your criteria of selection include low risk, high returns, then the PNB FD of 506 days would undoubtedly top the list. Good for—
- Salaried superb anticipators standing against major financial expenses.
- Retired strengthened spirits, hitherto seeking financial guarantees.
- Investors are not leaping beyond step one in risk mitigation.
In conclusion
PNB’s 506-day FD scheme caters to an assuredly rewarding avenue for all investment-savvy depositors. Put in INR 4 lakh and reap INR 39,080 on interest, thereby allowing you to enjoy financial security.
This FD shall easily appeal to those who set much store by safety and steady returns. Post an FD today and nest egg into work for fruitful returns sans any worry!