Under its “Sugam Term Deposits” scheme, Punjab National Bank (PNB) allows depositors to withdraw any amount before maturity. This can be done without breaking the entire deposit and without losing interest on the remaining deposit under the scheme.
However, the interest rate will vary depending on the slab that the FD amount falls in as specified by the bank.
PNB recently announced that it has decided to restrict the maximum amount of investment at Rs 10 lakh per customer under PNB Sugam Fixed Deposit Scheme.
Premature withdrawal of deposit
The PNB Sugam plan allows premature withdrawals as long as they are made in multiples of Rs. 1, with a minimum withdrawal of Rs. 1000 per transaction at a time.
According to the PNB website, “The value of Term Deposit Receipt (Principal amount) shall be reduced accordingly. No penalty is to be levied in respect of the part withdrawal of deposit. If any depositor desires to withdraw the entire deposit before maturity, no penalty will be levied and the interest rate payable would be contractual rate or the rate under the scheme on the contractual date applicable for the tenor for which the deposit has run, whichever is lower.”
PNB Sugam interest rates
The bank offers interest rate on deposit depending on amount bucket of deposit which are:
a. Deposits less than Rs.2 crore
b. Deposits for Rs.2 crore to Rs.10 crore
c Deposits for above Rs 10 crore to less than Rs.100 crore
Note that if the amount bucket of the deposit changes due to part withdrawal of deposit, then rate as applicable for new amount bracket of deposits is to be made applicable from the date of such withdrawal.
The depositor has the option to draw interest monthly/quarterly or on maturity. Interest shall be paid on compounded basis with quarterly rests if the period of deposit remained with the Bank is 6 months and above.
Who can invest in PNB Sugam?
1.Individual (singly or jointly) with others
2.Minor who have attained the age of 10 years and above in his own name on giving proof of age
3.Proprietorship/Partnership Firm, Commercial Organization, Company /Corporate Body
4.Hindu Undivided Family
5.Association, Club, Society, Trust or Religious/Charitable or Educational Institutions
6.Municipality or Panchayat, Government or Quasi Government Body
7.Illiterate and blind persons can also open the account.
# The rates for Rs.2 Crore to Rs.10 Crore are not to be loaded with additional rate of interest for Sr. Citizens, staff accounts etc.
Source By: economictimes
