| Invested amount | ₹ |
| Est. returns | ₹ |
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PNB, short for Punjab National Bank, offers excellent RD options to its customers with attractive rates. Punjab National Bank is a nationalized and second-largest public sector bank in India. One can choose their desired tenure and calculate the interest rate on the PNB RD by using the PNB RD calculator.
It helps you calculate the interest that your principal amount will earn by investing monthly in a Punjab National bank recurring deposit account. To check how much interest your recurring deposit will receive at the end of the tenure chosen, you have to provide the necessary details of your RD account, such as investment amount, tenure, and rate of interest.
Read more about PNB RD Interest Rates
You can calculate the maturity amount in a hassle-free manner by simply entering the key details pertaining to your RD account such as the monthly investment amount, tenure, the rate of interest rate and you will be provided with the maturity amount instantly. It’s that easy!
The compound interest on a recurring deposit amount is added after the first quarter. The financial quarters in a year are given below:
The compounding takes place after each quarter; hence until then, a simple interest calculation is applicable. The formula used for calculating recurring deposit interest as provided by the Indian Bank Association is as follows-
M=R[(1+i) (n-1)]/1-(1+i)(-1/3))
Let’s understand this with an example:
Suppose, Manish opens an RD account in PNB Bank with a monthly investment amount of Rs. 2000 for 2 years and the interest rate provided is 7%. If we put all the values in the above formula, we get –
M = 2000[(1+7/400)(8-1)]/1-(1+7/400)(-1/3)
M = Rs. 51,640
With the help of the PNB Recurring Deposit, calculating the interest on your RD takes a few clicks.
While determining the rate of interest for the depositor, certain factors are considered. Some of them are
Tenure
The duration for which you invest the money in a recurring deposit. The Interest rate your principal amount accumulated depends on various factors and tenure is one the most important ones. Your RD interest rate varies across all the tenure options.
Age
Banks and other financial institutions provide a higher rate of interest to senior citizens. The rates may vary from 0.50% to 0.75% additional interest over the regular deposit rates provided to general citizens.
Current Economic Environment
Banks that provide recurring deposits schemes keep on updating their interest rates with the changes in the economic conditions. For instance, the interest rates factor in inflation and change accordingly. Similarly, repo rate changes also have a bearing on RD interest rates.
Repo Rate
Repo rate is the rate at which commercial banks borrow from the Reserve Bank of India. A decline in the repo rate can lead to the banks bringing down their RD interest rate. This can, however, prove to be beneficial for retail loan borrowers.