[Resolved]  Punjab National Bank / Fixed Deposit — RATE OF INTEREST ON PRE CLOSURE

Address:

Chennai, Tamil Nadu

The undersigned is a Savings Account Holder at PUNJAB NATIONAL BANK North Usman Road Branch, CHENNAI and the SB Account No. is [protected]. A Fixed Deposit for a value of Rs. 3,00,000/- was opened on 03.12.2008 at the rate of 9.50%. On the due date of Maturity (03.12.2009), the FD was renewed automatically for another one year at the applicable interest rate of 6.5% for an amount of Rs. 3,29,531/- (Maturity Value). For further renewal, no intimation has been sent to the undersigned. I wanted to utilize this amount for payment of Tuition Fee of my son and enquired in the month of April, 2010. On coming to know the subsequent renewal, I have surrendered the FD on 30th April, 2010 for pre closure.

The amount credited to my SB account was Rs. 3,32,171/-. I have enquired how the interest calculation has been worked out. The concerned clerk and the branch manager has confirmed that the FD is pre-closed, and the penalty of 2% on the applicable interest (4%) for 148 days i-e 2% is applied which works out to Rs. 2640. The undersigned explained the meaning of pre-closure as the FD is pre-closed for one year, since it has been renewed automatically for another one year and the penalty for pre closure 2% has to be reduced from 6.5% applicable interest for one year or the FD has been actually utilized for 148 days and the applicable interest of 4% for that period has to be paid.

The Manager was not willing to listen and argued that this is the policy of the Bank. Still I have argued that suppose, the FD was not renewed further, then the amount would have been lying in Savings Account and it would fetch at least 3.5% interest calculated on daily balance basis. Putting the amount in FD is not a sin, it must earn interest more than what actually earned in Savings Account.

Since, I have not got any justice from the Branch Manager; the undersigned had left with no option, but to inform Circle Office of PNB to get fair level of interest working. I have also verified with other PSU banks and Private Banks that these types of negative policy no were exist. Rather, one of the PSU bank, State Bank of India officer has commented that the penalty clause has been totally removed in order to attract more Deposits.

Hence, I request that at least the no of days the FD was utilized the applicable rate of interest for that period has to be paid.