PNB’s flexi recurring deposit scheme: Eligibility, terms & conditions, and features

There are several ways of making an investment through which you can save money, as well as earn profit. One of the safest ways to achieve this is by depositing your money in a bank; like in the case of fixed deposits, banks pay interest on recurring deposits as well.

Also Read: India Post’s recurring deposit account is a safe investment option. Check how

Punjab National Bank (PNB), like other banks, has its own flexi recurring deposit policy. Here’s all you need to know about it:

Eligibility: Any adult individual can opt for this scheme (singly or jointly), which is available for minors as well. However, minors should be at least 10 years old, and can avail this scheme in their own name by producing a proof of age. Minors below 10 can go for it under the guardianship of natural/legal guardian.

Terms and conditions: You can open your account for a period of minimum 6 months and maximum 120 months (10 years). You can begin with a monthly installment of at least ₹100; installment has to be in multiples of 100, and cannot exceed ₹50,000 for a month.

Features: Under this, there is no penalty for a missed installment, while the interest rate is 5.75%. Also available are services such as nomination facility, and loan/overdraft against deposit. The interest, which is calculated on a daily product basis, will be paid half-yearly, while tax deducted as source (TDS) is applicable as per rules.