Comparing Bank of India and PNB Fixed Deposits: Which One is the Better Option?

Opening an FD account is an effortless way to earn fixed annual interest on your deposits. Small depositors get attracted to fixed deposits due to the easy operation of the fixed deposit account and the freedom to draw the fixed deposit amount whenever they want to. Closing the fixed deposit account and withdrawing the amount of money at any time is effortless. Banks offer a deposit insurance guarantee of approximately five lakhs INR on fixed deposits.

The Reserve Bank of India hiked repo rates in the previous months, and banks began hiking fixed deposit rates. The article compares fixed deposits and interest rates between the Bank of India and Punjab National Bank.

Bank of India Fixed Deposit Interest Rates

The FD rates Bank of India offers rates of 3.00%-6.75% per annum to regular citizens and 3.00%-7.25% per annum to senior citizens on fixed deposit terms varying from a week to ten years. The FD rates Bank of India of Tax Saving Fixed Deposits 6.00% per annum for general people and 6.75% per annum for senior citizens. The FD rates Bank of India begin at 2.85% per annum and rise approximately to 7.25% per annum. Senior citizens can get an extra interest rate of 0.5% on fixed deposits.

According to the official website of the Bank of India, senior citizens are eligible to receive an extra interest of 0.50% per annum if the term is for six months and above and approximately ten years for a minimum deposit of 500-INR. If a senior citizen chooses a fixed deposit of three years and above, they will receive an extra 0.75% rather than o.50%.

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Punjab National Bank Fixed Deposit Interest Rates

The PNB FD interest rates lie between 3.50% per annum and 7.25% per annum. For deposits lower than two crores INR deposits, the PNB FD interest rate is 7.25% per annum. Senior citizens are eligible for an extra 50 bps interest over the current interest rates for lower than two crores INR deposits. The tenure of fixed deposit schemes ranges from a week to ten years. The PNB FD interest rate for Tax Saver is 6.10% per annum for general citizens and 6.60% per annum for senior citizens. The highest PNB FD interest rate is 7.25% per annum

Characteristics of the Bank of India Fixed Deposit Scheme

The characteristics and perks of the Bank of India are:

  • The term of fixed deposits that the Bank of India offers is approximately 15 days to 10 years,
  • You can withdraw the interest you earn during the term monthly or quarterly.
  • The Bank of India offers the nomination facility for fixed deposit schemes.
  • You can take loans against the amount you deposited in the bank.

Characteristics of Punjab National Bank Fixed Deposit Scheme

The characteristics of the Punjab National Bank Fixed Deposit scheme are:

  • Auto-Renewal Facility- If an individual chooses auto-renewal, the term deposit would be renewed automatically after maturity exempting deposits that fall under Capital Gain Scheme, Bulk Term Deposits, Punjab National Bank Tax Saver Scheme, Inter-Bank Deposits, and Recurring Deposit Scheme.
  • Includes Blind and Illiterate People- The Punjab National Bank lets blind and illiterate people open an FD account.
  • Include Every Section of Society- The Punjab National Bank allows people from every section of society to open a fixed deposit account.
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Eligibility Criteria of the Bank of India Fixed Deposit Scheme

The eligibility criteria for the Bank of India fixed deposit scheme are:

  • Single account holders
  • Joint account holders
  • Blind people Minor people
  • Association Companies
  • Illiterate people
  • Religious Establishments
  • Municipalities
  • Panchayats
  • Government Establishments
  • Educational Establishments
  • Charitable Establishments

Eligibility Criteria for Punjab National Bank Fixed Deposit Scheme

The eligibility criteria for Punjab National Bank fixed deposit schemes are:

  • Indian Citizens
  • Indians residing in other countries
  • Members of HUF
  • Certified associations, trusts, and societies
  • Public and private companies

Documents Required for Bank of India Fixed Deposit

The documents required for Bank of India fixed deposit are:

  • Driving License
  • Adhaar Card
  • Permanent Account Number
  • Senior Citizen Identification
  • Government-issued photo identification
  • Passport
  • Electricity Bill
  • Telephone Bill

Documents Required for Punjab National Bank Fixed Deposit

The documents required for Punjab National Bank fixed deposits are:

  • Know Your Customer Documents
  • Gas Bill
  • Bank Account Statements
  • Passport Size Photographs
  • Electricity Bill
  • Adhaar Card
  • Voter Identification Card
  • Permanent Account Number
  • Driving License

Procedure to Apply for Bank of India Fixed Deposit

Online and offline are two ways to apply for a Bank of India fixed deposit. Both the online and offline process is given below:

Online Procedure

  • Go to the official website of the Bank of India.
  • With the help of a username and password, log in to your internet banking account.
  • Click the Fixed deposits tab.
  • Enter the required details.
  • Authenticate your details and tap on the Confirm button.
  • The screen will show a confirmation message.

Offline Procedure

  • Go to a Bank of India branch near you.
  • Request for a fixed deposit application form.
  • Fill up the form with accurate details.
  • Submit all necessary documents.
  • Deposit the amount.
  • Take your fixed deposit receipt.
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Procedure to Open Punjab National Bank Fixed Deposit Account

There are two ways to open Punjab National Bank fixed deposit accounts- Online and Offline. Both the online and the offline process is given below:

Online Procedure

  • Go to the official website of Punjab National Bank or install the PNB mobile application on your mobile phone.
  • Log in to your internet banking account with the help of customer identification and password.
  • Tap on the Fixed Deposits option.
  • In the space provided, write down the amount you want to deposit and the tenure.
  • Write down the relevant details and submit relevant documents.
  • The lender will authenticate the information you provided. If the lender finds the details accurate, a fixed deposit account will be opened, and you can begin depositing a specific account into your fixed deposit account monthly.

Offline Procedure

Go to a Punjab National Bank branch near you with all the required documents. A bank representative will assist you in opening a fixed deposit account. Fill up the application form required for opening a fixed deposit account and submit the form with all the required documents.

Conclusion

The above comparison between Bank of India FD rates and PB FD rates, in addition to key differences between the procedures, eligibility criteria, characteristics, and perks of an FD with the two banks will help you make a sound decision. Go through the guide carefully and choose which bank is more profitable as per your needs.

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