Fixed Deposits (FDs) remain one of the most trusted ways for Indian savers to grow their money safely. Among the various schemes available, Punjab National Bank (PNB) has introduced a short-term FD plan that allows investors to grow ₹85,000 into ₹89,000 in just 4 months. This plan offers both security and attractive returns, making it a good option for those who prefer short-term guaranteed growth.
Key Features of PNB’s 4-Month FD Plan
PNB’s short-term FD is designed for individuals who want to park their savings for a brief period but still earn competitive returns. With higher interest rates offered on short-term deposits, investors can achieve substantial growth without locking in funds for years.
Interest Rate Highlights
- Tenure: 4 months (approx. 117 days)
- Minimum investment: ₹10,000 (example here taken as ₹85,000)
- Maximum investment: No upper limit, subject to bank norms
- Premature withdrawal: Allowed, but with penalty charges
- Senior citizens: Eligible for additional interest benefits
How ₹85,000 Becomes ₹89,000
When an investor deposits ₹85,000 into PNB’s 4-month FD at the prevailing high interest rate, the maturity amount grows close to ₹89,000.
Maturity Calculation Example
| Investment Amount | Tenure | Interest Rate (Approx.) | Maturity Value |
|---|---|---|---|
| ₹85,000 | 4 months | 7.25% p.a. (approx.) | ₹89,000 (rounded) |
This example assumes quarterly compounding and may vary slightly depending on the exact deposit date and interest rate applicable at the time.
Why This FD Plan is Attractive
Short-term FD plans are ideal for investors who:
- Do not want to risk their savings in volatile markets
- Need liquidity within a few months
- Want assured returns higher than a savings account interest rate
- Are senior citizens looking for safe income options
Compared to a regular savings account where the interest rate is typically between 3–3.5%, this FD plan offers much better returns in a very short span.
Tax Considerations
While the returns are guaranteed, investors should note that TDS (Tax Deducted at Source) is applicable if the total annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). Declaring the income while filing returns is mandatory.
Conclusion
PNB’s 4-month FD plan is a smart option for those seeking safe and quick growth of their savings. Turning ₹85,000 into ₹89,000 in just 4 months demonstrates why FDs continue to be a favorite for cautious investors. By taking advantage of short-term high interest rates, individuals can balance safety and profitability without long-term lock-in.