15.06% PNB HFL Fixed Deposit Scheme-Review

PNB HFL Fixed deposit schemePNB HFL Fixed Deposit Scheme-Review

You might be seeing several advertisements on various websites these days about PNB HFL FD Scheme, which indicates yield of 15.06%. Punjab National Bank Housing Finance Limited (PNB HFL) FD schemes is rated as FAAA by Crisil. How good is PNB HFL FD Scheme? What are the negative factors of PNB Housing Finance Limited FD Scheme?


PNB Housing  Finance Limited is a joint venture of Punjab National Bank (74% stake) and Destimoney Enterprises Pvt Ltd (26% stake) which provides housing finance.

Also Read: Which are the top rated company fixed deposit schemes?

Features of PNB HFL Fixed Deposit scheme

  • This FD scheme is available for 1 to 10 year period
  • This FD scheme is available for cumulative and non-cumulative options
  • Interest offered is 9.40% per annum
  • Annualised yield for 10 year FD scheme works out to be 15.06%.
  • Senior Citizens would get an additional interest rate of 0.25%.
  • NRI’s can invest in this PNB HFL FD scheme on non repatriation basis for a maximum period of 3 years. The interest also would be transferred to NRO account.
  • Minimum deposit of Rs 20,000.
  • No TDS in case interest in a year does not exceed Rs 5,000. If interest is exceeding Rs 5,000, TDS would be deducted on total interest amount (not just beyond Rs 5,000) based on applicable tax laws. However, we need to indicate the interest received and pay necessary income tax based on our income tax slab every year.
  • Crisil Rated this PNB HFL as FAAA which indicates high safety assurance.
  • Nomination facility is available.
  • Premature withdrawal is available after 3 months subject to certain conditions.
  • Loan facility up to 75% of the deposit amount.
  • More details about FD scheme can be checked at this link

Interest rates and yield details are indicated below

PNB HFL FD Scheme-Interest rates

How to apply for this FD scheme?

  • Download the application form at this URL: http://www.pnbhfl.com/pdf/FD%20Form.pdf
  • Fill and sign the application form
  • Application form + cheque/draft in favoring “PNB HFL – Fixed Deposit Account” should be sent to collection centers. Collection centers are listed in the application PD document. In case where collection centers are not available in their area, one can send duly filled application form + demand draft for the deposit amount to Registered office of the company in Mumbai.

Why should you invest

  • High interest rates of 9.40% per annum. Due to half yearly compounding, annualized yield would work out to be 15.06% for 10 year fixed deposit. Banks are offering FD rates of 9%. Considering this, it would be a good option to invest in such FD schemes.
  • Company earned good profit. It earned Rs 127 Crores for FY2013-2014. This indicates that it can pay FD interest without any problem.
  • Crisil Rated this PNB HFL as FAAA which indicates high safety assurance.

Why not to invest

  • Company FD schemes are unsecured and high risk.
  • Company can delay payment of interest and repayment of principal.
  • This FD scheme cannot be easily liquidated / closed before the maturity date. The PNB HFL FD scheme has put a condition that investors can apply for pre-mature withdrawal after 3 months of starting an FD scheme, however at the company sole discretion, it may accept such application. Means there is no guarantee that the company would accept your pre-mature withdrawal application.

Also Read: How Post Office MIS Scheme helps you to get monthly income?

What are the conditions for pre-mature cancellation of PNB HFL FD Scheme?

  • You can apply for pre-mature cancellation of the PNB HFL FD Scheme by contacting the customer support.
  • Minimum 3 months lock in period
  • 3 to 6 months – 4% of interest would be paid on the deposit amount
  • > 6 months – 1% lower interest would be paid than actual interest indicated.

Conclusion: PNB HFL Fixed deposit scheme interest rates are attractive. Considering negative factors indicated above, a high risk investor who is willing to park money for a pre-defined period without the liquidity option can invest in such high rated FD scheme.

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PNB HFL Fixed Deposit Scheme



    Sir ,
    Please provide your email ID on your FD so that we can send mail on topic of our requirement .

  • kripal Singh

    I wanna do investment but some great ideas I have need for investment like if I will invest per month like 10000 rs. or more than I wanna some scheme for this.
    Pls give me some suggestions for this.

    Kripal singh

  • Nanmith

    Happy Diwali to you and your family Suresh. You are really doing an excellent job

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