1. What is the PNB Fixed Deposit Calculator?

The PNB Fixed Deposit Calculator helps you calculate the maturity amount for fixed deposits with Punjab National Bank using quarterly compounding interest. It provides accurate estimates of your investment returns.

2. How Does the Calculator Work?

The calculator uses the PNB FD formula:

Where:

• \( A \) — Maturity Amount (₹)
• \( P \) — Principal Amount (₹)
• \( R \) — Annual Interest Rate (%)
• \( T \) — Time Period (years)

Explanation: The formula calculates compound interest with quarterly compounding, which means interest is calculated and added to the principal four times per year.

3. Importance of FD Calculation

Details: Accurate FD calculation helps in financial planning, investment decision making, and comparing different investment options. It ensures you know exactly how much your money will grow over time.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate in %, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is quarterly compounding?
A: Quarterly compounding means interest is calculated and added to the principal four times per year, which helps your investment grow faster than annual compounding.

Q2: Are there any taxes on FD interest?
A: Yes, interest earned on fixed deposits is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q3: What is the minimum investment for PNB FD?
A: The minimum investment amount for PNB fixed deposits is typically ₹1,000, but it's best to check with your local branch for current requirements.

Q4: Can I withdraw my FD prematurely?
A: Yes, but premature withdrawal may attract penalties and the interest rate may be revised to the rate applicable for the period the deposit was held.

Q5: How often is interest paid out?
A: PNB offers various payout options - monthly, quarterly, half-yearly, yearly, or at maturity. The frequency affects the effective yield.