PNB 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?
About PNB HFL
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 ₹ 20,000.
- No TDS in case interest in a year does not exceed ₹ 5,000. If interest is exceeding ₹ 5,000, TDS would be deducted on total interest amount (not just beyond ₹ 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
How to apply for this FD scheme?
- Download the application form at this URL: https://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 ₹ 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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Suresh
PNB HFL Fixed Deposit Scheme
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21 comments
Add a comment ↓Very nice information which may helpful in investment decisions. How can I get in touch with you pl.inform.
Iam interested for the FD and I need your help how I invest ,can it possible in PNB bank
Hi Suresh,
I am regularly viewing your posts which are very impressive and knowledgeable to my future investments.
1 small suggestion. While posting any new update, kindly add the date as well – next to your Name i.e. ” Posted by K.P Suresh”.DDMMYYYY.
pl indicate the date when the article(s) was written… some are very outdated and hencenot relevant! your articles are really good,though! keep it up!!
Sir what is interest rate? Please help me. I want to inest.
Inquiry for HFL fixed deposit scheme.
For Savings plan inquiry
Sir ,
Please provide your email ID on your FD so that we can send mail on topic of our requirement .
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.
Regards
Kripal singh
Happy Diwali to you and your family Suresh. You are really doing an excellent job
oh just a question…
is taking an FD for direct 5 yrs different against taking an FD for 1 yr. and renewing it at the end of each year in terms of ‘effective yield’ *interest rate for both time periods is same…
thank you!!!
Jumanji, There is different. If you take 5 year FD, you take at X Rate. If you take for 1 year, you take at X rate, but you would renew for another year at Y rate which could be different from X rate. Hence you should take for 5 years, if required, you can break in between
continuing…why do my bank then offer high interest (9% in PNB) for 1yr. and lesser 8.5% for longer periods 4yrs. if dats the case then why dont everyone keep an FD for i yr. and keep renewing it for coming yrs.(if they can get same interest rates) I have been renewing mine at 9% every year from a very long time !
Your ability and endeavor to answer every possible query is quite appreciating. May God bless you and your blog.
Jumanji, Banks do not want to promise long term interest rates. If you see none of the banks would indicate 10+ years interest rates. Short term interest rates, they can always modify after a year or so.
Its very nice:-). Negative points of PNB HFL deposit scheme is very useful for investors:-):-) thanks suresh
*** Happy Diwali Sir ***
Thanks. Wish you too
Is TN Power Finance better than PNB HFL FD?
Yes better, however returns are higher in PNB HFL FD scheme
Hi Suresh,
Happy & prosperous Diwali to you and your family. Thanks for your review.
Thanks and wish you the same