Punjab National Bank: Punjab National Bank’s RD (Recurring Deposit) scheme is a great investment option, which allows depositing a fixed amount every month. Under this scheme, customers have to deposit an amount of Rs 500, 1000, 5000, or 10,000 every month. It gets an annual interest rate of 6.5%, which increases over time on the amount deposited regularly.
The main advantage of this scheme is that by investing in it you get safe and assured returns, and at the same time it becomes a great way for customers investing for a long period, which can also create a good fund. In this scheme, customers can choose the maturity period (from 1 year to several years) as per their convenience, and as the time increases, the interest is also received.
Yes, there are many investment options available nowadays, and people choose these options based on their financial needs. Investment options like Fixed Deposit (FD) and Recurring Deposit (RD) are very popular in Punjab National Bank. In both, customers can increase their investment in a safe way, but there are some differences between these two.
1. Fixed Deposit (FD):
Investment: In this, customers invest a lump sum amount and deposit it in the bank for a fixed period.
Withdrawal: Customers can withdraw money even before the maturity of FD, but some conditions apply on doing so, such as reduction in the pre-determined interest rate or penalty.
Interest Rate: The interest rate on FD is high and it remains locked for a fixed period.
Maturity: The duration of FD can be from 7 days to 10 years.
2. Recurring Deposit (RD):
Investment: In RD, the customer has to deposit a fixed amount every month. It is a systematic investment plan, in which small amounts are deposited from time to time
Withdrawal: In RD too, customers can withdraw their investment before maturity, but there may be some reduction in the pre-determined interest rate.
Interest rate: The interest rate on RD is similar to FD and it is based on the amount deposited every month.
Maturity: Like FD, the duration of RD can also be from 6 months to several years.
In both these schemes, the investor gets the facility to withdraw at his own will, but some conditions may apply before withdrawal. Apart from this, the interest on the deposit amount is fixed in both the schemes, which gives the investor a safe and assured return.
Other options like SIP, mutual funds, and insurance also have various benefits of investing, but these can be more risky and volatile. If you are looking for low risk and safe investment, then FD and RD can be the right option.