What is a Fixed Deposit?

Fixed deposit is investment instruments offered by banks and non-banking

financial companies, where you can deposit money for a higher rate of interest
than savings accounts. You can deposit a lump sum of money in fixed deposit for a
specific period, which varies for every financier.
Once the money is invested with a reliable financier, it starts earning an interest
based on the duration of the deposit. Usually, the defining criteria for FD is that
the money cannot be withdrawn before maturity, but you may withdraw them
after paying a penalty.
Fixed deposits are a high-interest -yielding Term deposit and offered by banks in
India. The most popular form of Term deposits are Fixed Deposits, while other
forms of term Deposits are Recurring Deposit. Usually in India the interest on FDs
is paid every three months from the date of the deposit. The interest is credited
to the customers' Savings bank account or sent to them by cheque. This is
a Simple FD.[5] The customer may choose to have the interest reinvested in the FD
account. In this case, the deposit is called the Cumulative FD  or   compound
interest FD.

PUNJAB NATIONAL BANK (PNB) – FIXED DEPOSITE:

PNB offers multiple fixed deposit options to their customers to park their surplus
savings for a fixed tenure. A customer is required to make a deposit once into
their FD account at the time of opening the account with the bank. The customer
is not allowed to deposit more money and withdraw any money in the account
during the tenure of the deposit. Fixed Deposits of PNB have a higher interest rate
compared to their saving deposits. Benefits of opening a FD account in PNB are:
 The auto renewal facility is not available
 Nomination facility is available
 Loan or overdraft upto 90 per cent on the deposit is available
 Income option can range from 6 months to 120 months

Eligibility
An individual (singly or jointly), including a minor who has attained the age of 10
years in his own name on giving proof of age by his guardian or any reliable
source or through this natural/legal guardian, proprietorship/partnership firm,
club, association, company/corporate body, public/commercial organization,
Hindu undivided family (HUF), Municipality, Panchayat, Govt. and Quasi-Govt.
body, society, trust, religious, charitable and educational institution can open
account under the scheme. The accounts in the name of minor, below the age of
10 years will be opened under guardianship.

Amount Of Deposit
The Fixed Deposit can be opened with a minimum deposit of Rs.1000/- or in
multiple thereof.

Period Of Deposit
For any period from 07 days to maximum 10 years, including incomplete quarters
such as 82 months, 95 months and 16 days so on.

Rate Of Interest
During currency of fixed deposit, the interest rates changes made by the bank will
be applicable automatically without presentment of confirmation of deposit by
the depositor from the effective date of such changes.
The interest shall be compounded on quarterly basis for deposit made for 6
month & above tenor and will be payable, along with principal, on maturity of
deposit, as per bank guidelines