Pnb Fixed Deposit Returns Vs PNB Share Price Return in 1 Year – Power of Investing in Stock Market and Earning
PNB Share Price return vs PNB Fixed deposit returns in 3 years – People tend to invest in fixed deposit because of security of funds and liquidity of their investments as fixed deposits can be redeemed for any emergency for any time during the year . Mostly people make hefty investments in fixed deposits making return of 5% to 7% on annual basis where some take the interest compounded while some take the return on monthly basis . But for investors with savings , it is important to know that they should always do more research in growing their investments rather that keeping it locked in some security .
Share market is an alternative way of investing money for better returns ,while compared it is considered more riskier than fixed deposit , it also a source of raising benefit for upto 15% percent compared to the fixed deposit returns . If you want to know the power of share market investment , here in this article we will be comparing the performance of pnb share price and pnb fixed deposit in the last three years based on their returns .
PNB Fixed Deposit Interest Rates and Return in One Year for Rs 1 lakh investment.
In 2023 , the PNB Fixed rate offered is around 6.5% for normal retail investor where on placing a fixed deposit with the bank one can earn a interest of 6.5% on their deposit amount . This is a assured return they are going to earn from the bank irrespective of whether the bank makes profit or not.
For instance a fixed deposit made of Rs 1 lakh on 1st April , 2023 will earn Rs 6500 on the end of the year making it a maturity amount of Rs 106500. This includes no risk over the investment and assured return to the depositor.
PNB Share price is an alternative option for making an investment compared to a fixed deposit . PNB Share price means holding ownership in PNB bank which can be invested for a lifetime. Considering the price of PNB Share on 1st April , 2023 it was around 46.90 Rs per share . For investing Rs 1 lakh , one can buy 2133 shares of PNB.
While keeping the share invested the stock provided a return of 62.8 per share by September , 2023 .Which means PROFIT = 62.8-46.9 = 15.9 PER SHARE meaning Total Profit = 33914 out of total investment in stock . Which is return of about 34% of the investment and that too within 6 months .
While it is risky investment too but working with stop loss , it can be achieved within 6 months.
Investing in a fixed deposit does not provide you any risk on your principal amount while the amount invested in a fixed deposit gets locked with the bank . You can premature witdrawl your PNB FIXED DEPOSIT anytime loosing your interest benefit .
In PNB Share prize their is a risky for a high fall in the market prices of the share which can also take your share price to the lowest . While working with stop loss, you can exit the stock anytime and can take your returns to your bank .
In PNB Fixed deposit , you can open a fixed deposit with PNB BANK online or offline in the bank even if you do not hold any bank account with the bank. But if you hold , you can also attach your bank account and nomination in your fixed deposit to receive interest monthly in your bank account for your fixed deposit .
For investing in PNB Share prize , you can open a demat account with Zerodha , PNB Demat account , Groww application or Angel One to invest in PNB Stock on a particular date deposting money in your demat account . The money is kept by NSE and not by the demat brokers. Your invested money is safe in hands of NSE which is government body and not controlled by the broker company.
What you should do for your spare Rs 1 lakh savings ?
If you have spare investment of Rs 1 lakh , rather than investing the entire amount in fixed deposit it is better to obtain stocks in share market and keep it invested for atleast 3 months to start receiving returns. You can view day to day basis charts and based on view of 3 months on any stock you can invest in 2 or 3 stocks .
Do not fall for investing in any single stock to receive returns . Investing in single stock the entire amount could be risky , you can choose to invest in 2 or 3 stocks .
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For investing in PNB Fixed deposit , you receive a return from the bank which is shown in Other Income Sources in your Tax Return and tax is calculated based on your tax slab on your earnings and deposits.
If you invest in PNB SHARES or any other shares in stock market and earns interest then it will considered as capital gains where you might have to pay taxes on your gains for upto 30% if your total profit in the year from stock trading is more than 1 lakh . If it is below , then you can include such income in your basic tax slab for taxation.
If invested for fixed deposit with PNB for Rs 1 lakh in 2020 , on compounded and non compounded basis it would have become :
Compounded @ 6.5% in 2023 = 120041
Non Compounded @ 6.5 % in 2023 = 119500
While compared to share market , the price of pnb share prize of
Investing price April 2020 – 33.05 took 3026 shares for Rs 1 lakh
Price April 2021 – 36.55 = Return for 1st year = 10.76%
Price April 2022 – 35.55 = Return for 2nd Year = -2.67%
Price April 2023 – 52.05 = Return for 3rd Year = 46.4%
and total return receive till april 2023 – 57% return in total shall be received at the end of 3 years.
Also read : Is Choosing Mutual Fund over Fixed Deposit a Good Decision ?
No , like in case above you might also loose your returns on your investment but working with a stop loss is a good option and investing more or keeping the amount invested in stock market will depend on the quality of stock you invested .
Minimizing Risk of Investing in Fixed Deposit and Stock Market
If you are making a savings of Rs 1 lakh and want to invest your money , then an ideal way of investing it is putting it into share market with 2 or three quality stocks . Once you receive the return for the amount , you can take the return opportunity further to receive more returns or you can also place the amount in fixed deposit for the remaining period to get assured return .
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What should be an ideal habit of investing your money every year ?
Any ideal working person earning even Rs 10000 per month , after making all expenses can invest Rs 1000 per month in stocks in share market . Rs 12000 invested in a year and for few years work far better than putting the amount in recurring deposit or fixed deposit .
Note : We are not SEBI Registered to provide any stock investment advice . So , you can invest based on your analysis and view in the market .
