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FD Rate: PNB increased interest rates on FD, now interest will range from 3.50% to 7.25%, see new interest rates here

Punjab National Bank (PNB) has increased the interest rates on fixed deposits (FD). The new interest rates have come into effect from tomorrow i.e. 1 January 2024. The revised rates are for FDs below ₹2 crore. The bank has increased the interest rate for 180 to 270 days from 5.5% to 6%.

For tenure of 271 days to less than one year, the interest rate has been increased from 5.80% to 6.25%. The interest on 400 day FD has been reduced to 7.25%. Earlier it was 6.80%. At the same time, the interest rate on FD of 444 days has been reduced.

How much interest will you get now on making FD in PNB?

Duration
Interest rates for ordinary citizensInterest rates for senior citizens
7 to 45 days3.50%4.0%
46 to 179 days4.50%5.0%
180 to 270 days6.00%6.50%
271 days to less than 1 year6.25%6.75%
1 year6.75%7.25%
1 year to 399 days6.80%7.30%
400 days7.25%7.75%
401 days to 2 years6.80%7.30%
2 years to 3 years7.00%7.50%
3 years to 5 years6.50%7.00%
5 years to 10 years6.50%7.30%

Source: Punjab National Bank Note: New rates are applicable from January 1, 2024

Tax has to be paid on the interest received from FD also

  • The interest received from FD is fully taxable. Whatever interest you earn on FD in a year is added to your annual income. Based on the total income, your tax slab is determined. Interest income earned on FD is considered “Income from Other Sources”.
  • The bank does not deduct TDS on fixed deposits if your total income is less than Rs 2.5 lakh in a year. However, for this you will have to submit Form 15G or 15H. In such a situation, if you want to save TDS, then definitely submit Form 15G or 15H.
  • If your interest income from all FDs is less than Rs 40,000 in a year, then TDS is not deducted. Whereas if your interest income is more than Rs 40,000, then 10% TDS will be deducted. In case of not providing PAN card, the bank can deduct 20% TDS.
  • This limit for deducting TDS on interest income more than Rs 40,000 is for people below 60 years of age. At the same time, income up to Rs 50 thousand from FD of senior citizens above 60 years of age is tax free. If the income is more than this, 10% TDS is deducted.
  • If the bank has deducted TDS on your FD interest income and your total income is not subject to income tax, then you can claim the deducted TDS while filing taxes. This will be credited to your account.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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