According to a research report published by a leading wealth management firm, the year 2017 witnessed Indians preferring financial assets over physical assets. During 2017-18, investments in financial assets jumped by 14.63% to more than Rs 2 lakh crore. During the same fiscal, investments in physical assets grew only by 5.9%.
Although Indians have been warming up to various financial assets, most of these have experienced volatility during the last few years. With the Reserve Bank of India reducing rates continuously, depositors have been looking for investment avenues which can not only offer steady interest income but also the safety of capital.
Fixed deposits offered by financial institutions such as PNB Housing Finance are emerging as attractive investment destinations to park a lump sum.
Here are a few reasons why depositors should consider investing in PNB Housing Finance’s Fixed Deposit.
A Safe form of Investment
Even though there are multiple options in the market, customers who need to invest a lump sum amount seem to be a worried lot. Thanks to market volatility, reduced interest rates and other issues, it seems to be a difficult proposition to shortlist a relatively secure investment destination.
However, PNB Housing’s fixed deposit (FD) have been granted the FAAA rating by CRISIL, which indicates the highest level of safety .
High Rates of Interest
As interest rates are dropping, depositors seem perplexed about the investment options at hand. The ones among them who are risk-averse find it difficult to explore market-linked options. Some depositors depend heavily on receiving interest income for covering expenses and maintain a decent lifestyle.
Thankfully, they can rely on PNB Housing Finance which offers up to 8.7% rate of interest. This is quite competitive and in the prevailing era of dropping interest rates, depositors would find these rates quite attractive.
Higher FD Rate of Interests for Senior Citizens: , PNB has the highest FD interest rates for the Senior Citizens. It offers 0.25% higher FD rate than the usual rate.
Option for Premature Withdrawal
Although customers deposit their funds while anticipating its requirement only after the given tenure, there could be cases when funds might be needed earlier. This may happen either due to an unforeseen need or an emergency. This could cause immense stress to depositors as in most cases premature withdrawal could invite penalties.
However, PNB Housing Finance has an option for premature withdrawal. Depositors can withdraw their funds anytime post three months from the date of deposit. Those who withdraw their deposits prematurely within six months from the date of deposit would receive an interest of 4% per annum. In the case of premature withdrawals done post six months, the interest rate applied would be 1% less than the interest rate offered by the public fixed deposit.
Widespread Network and Managers
Customer convenience is no longer an exception but business as usual. Customer demands have evolved. When it comes to financial services, availability and accessibility are paramount. PNB Housing Finance understands and appreciates this. Therefore, there are over 100 branches set up across 35 cities in India along with dedicated and competent service managers to help depositors with queries.
Even NRI depositor can benefit from being associated with PNB Housing Finance. PNB Housing provides FD’s to NRIs for a maximum tenure of 3 years. The payment and procedures will be done via the NRO account of the depositor.