Plans With Life Cover

Invest ₹10K/month & Get ₹1 Crore^# on Maturity

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Disclaimer: # The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All plans listed here are of insurance companies’ funds.

PNB FCNR Account

PNB FCNR (Foreign Currency Non-Resident (Banks) deposit rates are crucial for Non- Resident Indians (NRIs) considering investing their savings with Punjab National Bank. These rates directly impact the returns on their foreign currency deposits, making them a significant factor in investment decisions. Understanding the prevailing PNB FCNR rates is essential for NRIs to make informed choices about their investment strategies and maximize their returns.

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What are FCNR Deposits?

Foreign Currency Non-Resident (Banks) Accounts, commonly known as FCNR deposits, are a type of term deposit offered by Indian banks to Non-Resident Indians (NRIs). These accounts allow NRIs to deposit funds in foreign currencies, offering several benefits such as:

No Exchange Rate Risk: Since deposits are held in foreign currencies, fluctuations in the exchange rate do not impact the principal amount.
Tax Benefits: No Wealth Tax or Income Tax is applicable on these deposits.
Repatriation: Principal and interest are freely repatriable in the desired currency.
Competitive Interest Rates: PNB offers attractive interest rates on FCNR deposits.

Eligible Currencies & Deposit Terms

Eligible Currencies: USD, GBP, EUR, AUD, CAD, JPY
Deposit Terms: Minimum 1 year to maximum 5 years

How to Open a PNB FCNR Deposit Account?

Remittance: Funds must be remitted from abroad through normal banking channels in convertible foreign currency.
Account Opening: Accounts can be opened by the NRI account holder in person at authorized PNB branches.
Eligible Remittances:
- Remittances from abroad
- Traveller Cheques/Currency Notes tendered on a visit to India
- Transfers from existing NRE/FCNR accounts

Interest Payment on PNB FCNR Account

Interest Calculation: Interest is calculated on a 360-day basis.
Payment Frequency:
- Deposits up to 1 year: Interest paid without compounding at maturity.
- Deposits over 1 year: Interest can be paid at intervals of 180 days or compounded at maturity.

Advantages of PNB's Global Foreign Currency Deposit Scheme

Concessions for High-Value Depositors:
- Free remittances up to Rs. 1 lac per annum
- No collection charges on instruments up to Rs. 1 lac per annum
- Concessions on depository services
- Free multicity chequebook
- Free locker facility
- Free Internet Banking
Loan Facilities: NRIs and third parties can avail loans in rupees against FCNR deposits.

Premature Withdrawal on PNB FCNR Account

Penalty: A 1.00% penalty on the applicable interest rate applies for premature withdrawals.
Exceptions: No penalty for premature cancellation to renew for a longer term.

Important Notes for PNB FCNR Account

Individuals/entities of Pakistan and Bangladesh require prior RBI approval.
Power of Attorney holders cannot open FCNR accounts on behalf of NRIs.

Conclusion

PNB FCNR deposit rates are subject to change based on various factors, including market conditions and the bank's internal policies. It is crucial for NRIs to regularly review the latest rates offered by PNB to ensure they are making the most of their investment opportunities. By staying informed about the current PNB FCNR rates and understanding the terms and conditions associated with these deposits, NRIs can make sound investment decisions and effectively manage their finances.

FAQs

Can nomination be made for an FCNR (B) Account?

Yes, nomination is allowed in an FCNR (B) account and can be in favour of an NRI, PIO, or a resident.
What are the maturity periods available under the scheme?
The scheme offers the following maturity periods:
- 1 year or more but less than 2 years
- 2 years or more but less than 3 years
- 3 years or more but less than 4 years
- 4 years or more but less than 5 years
- Exactly 5 years
Is the interest earned on an FCNR (B) account taxable under Income Tax laws?

No, the interest income earned from an FCNR (B) account is exempt from taxation under Income Tax regulations.
Are FCNR (B) account deposits taxable under Wealth Tax?

No, deposits in FCNR (B) accounts are not subject to Wealth Tax.
Can funds held in an FCNR deposit be repatriated?

Yes, both the principal and interest amounts are fully repatriable in foreign currency.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*Past 10 Year annualised returns as on 01-01-2025
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 2 Cr. is for a 30 year old healthy individual investing Rs 18,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: 1,06,79,507 @ CAGR 4%; 2,12,15,817 @ CAGR 8%. All plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).