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PUNJAB NATIONAL BANK FD ONLINE CALCULATOR will help you calculate the interest that your money will earn when kept in a fixed deposit in Punjab National Bank. This will give the details of

investment that's the principal amount on maturity after the interest is compounded on days or a monthly, quarterly, half-yearly and yearly basis. To learn about how your fixed deposit

earns interest and how much will be your earning at the end of the tenure chosen, Goodreturns online calculators will help you. Punjab National Bank fixed deposit is a great way to save

money for a period of time, if you are looking at getting your invested money safely along with good returns on your investment, then fixed deposit is the way to go. Checking the PUNJAB

NATIONAL BANK FIXED DEPOSIT INTEREST RATE and making the decisions is now very easy. HOW TO OPEN A FIXED DEPOSIT ACCOUNT WITH PUNJAB NATIONAL BANK? Punjab National Bank (PNB) is a

nationalised and second largest public sector bank in India. PNB customers can open fixed deposit by visiting a bank or online can be opened online if the person is registered for internet

banking. While, online FDs will be issued to only those wherein the valid PAN document is recorded in the account. FIXED DEPOSIT AVAILABLE WITH PNB There are different types of fixed deposit

accounts available in PNB catering different needs. With NB Anupam Term Deposit Scheme, individuals can open account with minimum deposit of Rs 10000/-and maximum amount of Rs 99,99,000/-.

Term deposit such as Balika Shiksha which can be opened with zero balance with upper limit of Rs 10 crores. HOW DO BANKS DETERMINE THE INTEREST RATES ON FIXED DEPOSITS? The banks in India

have the freedom to determine the rate of interest on the fixed deposit as well as loans. The Reserve Bank of India has given a free arm for all the banks in India to determine the rate of

interest on the savings account, current account, fixed deposit account, recurring deposit, interest on loans and so on. Based on the bank’s assets and liabilities position the interest

rates will be fixed. For example: If the banks have more funds with them for disbursement, then it fixes a lower rate of interest on the fixed deposit and on the other hand if they are

facing liquid crunch situation (less money) then they will increase the rates on the deposits and thereby attract more investments from the general public. People prefer to earn more

interest rates on their deposited amount from banks and financial institutions in India. While the banks have a preset base rate which is the minimum rate of interest below which the banks

cannot lend their money. This was introduced during July 1, 2010, replacing the earlier Benchmark Prime Lending Rate (BPLR). All the banks in India fix the base rate on the fixed deposit

schemes based on broad guidelines issued by the RBI. PUNJAB NATIONAL BANK FD CALCULATOR Every individual will be eager to know the final maturity amount that he/she will be eligible to

receive at the time of investing the money in the fixed deposit. To get accurate results, one has to use the fixed deposit calculator and feed in the correct data which includes, principal

amount, the tenure of the deposit, the interest rate in order to get the correct final value. The Punjab National Bank Fixed Deposit Calculator helps the depositors to get the exact value of

the invested amount at the time of maturity. AUTO RENEWAL FACILITY The fixed deposits in the Punjab National Bank comes in with an Auto-Renewal Facility. Under this facility, the customers

can renew the existing fixed deposit account held in the bank automatically post maturity, exactly for the same period of time as the previously fixed deposit was held for. But the interest

rate is likely to differ and the existing interest rate will be taken into account for the auto-renewed fixed deposit scheme. TYPES OF INTEREST RATES There are two types of Interest Rates: •

Simple Interest Rate • Compound Interest Rate SIMPLE INTEREST RATE Under this method interest rate is arrived at by multiplying the principal value with the number of days and the interest

rates. SIMPLE INTEREST = PRINCIPAL X INTEREST RATE X NUMBER OF DAYS / TENURE COMPOUND INTEREST RATE Compound Interest is the addition of the interest on interest. It is the resultant of the

reinvesting interest and the interest amount is retained back in the account rather than paying it out. The banks in India mainly follow the compound interest rate concept to calculate the

fixed deposit maturity value. COMPOUND INTEREST RATE: A = P(1+R/N)^NT In the above mentioned equation, A stands for compound interest rate, P stands for principal amount, r stands for rate

of interest per annum, n stands for number of times in a year the interest gets compounded, t stands for number of years. For example: If a person invests Rs 1000 in a fixed deposit scheme

for a tenure of 5 years and the rate of interest is 7% per annum. Then the compound interest is 1000X7/100 = Rs 70, for the first quarter. Similarly, the interest for the second year will be

calculated on the accumulated amount of 1000+70=1070.