Every year, thousands of families in India face financial hardship due to road accidents. While compensation from Motor Accident Claims Tribunals (MACT) helps victims or their dependents, managing that money safely is another challenge. To address this concern, Punjab National Bank (PNB) introduced a special deposit plan called the PNB Fixed Deposit Scheme for Road Accident Victims.
This unique FD scheme ensures that the compensation amount isn’t misused or eroded and instead earns maximum possible interest while staying accessible as per court directions.
In this article, we’ll cover:
- ✅ What exactly is the PNB FD Scheme for Road Accident Victims
- ✅ Eligibility, features, and rules
- ✅ Benefits of this FD scheme compared to regular deposits
- ✅ FAQs about PNB fixed deposits in 2025
What is the PNB FD Scheme for Road Accident Victims?
The PNB FD Scheme for Road Accident Victims is designed specifically to safeguard compensation amounts received through Motor Accident Claims Tribunal (MACT). Instead of leaving the funds idle, the scheme allows claimants to invest under the highest interest rate category of fixed deposits.
In simpler terms, if a family receives compensation after a tragic road accident, the money can be parked in this FD scheme to ensure steady returns while protecting the capital.
Key Features of the Scheme
1. Eligibility
- Any individual or dependent (single or joint with others).
- Minors above 10 years can open the account in their own name.
- For children below 10 years, the account can be opened under guardianship.
- Most importantly, there must be Court Orders supporting the claim.
2. Deposit Tenure
- Minimum: 12 months (1 year)
- Maximum: 120 months (10 years)
- The period is usually defined by the court.
3. Interest Rates
- Earn 1% higher than the standard PNB FD rates (CARD rate).
- Interest can be paid monthly (at a discounted rate).
4. Renewal Policy
- Automatic renewal will be done as per court orders, ensuring compliance and security.
5. Restrictions
- ❌ No premature withdrawal or part withdrawal.
- ❌ No loans or advances allowed against this FD.
How the Scheme Works – Example
Imagine a family receives ₹10 lakh compensation after a road accident. The Motor Tribunal orders that the amount should be placed in an FD for 5 years.
- If regular PNB FD rates for 5 years are 7.00%, under this scheme the family will earn 8.00%.
- At maturity, the deposit could grow to approximately ₹14.69 lakh, instead of ₹14.03 lakh in a normal FD.
This shows how the scheme not only secures the money but also maximizes returns.
Benefits of the PNB Fixed Deposit Scheme for Road Accident Victims
- Court Compliance: Ensures funds are parked safely as per MACT orders.
- Higher Returns: 1% more than standard FD interest rates.
- Capital Protection: The principal amount is locked and secure.
- Monthly Income: Interest can be credited monthly, helping dependents manage daily expenses.
- No Misuse of Funds: Prevents premature withdrawals or loans that may deplete the compensation.
- Automatic Renewal: Stress-free continuation without manual intervention.
How is this FD Different from a Regular PNB Fixed Deposit?
| Feature | Regular PNB FD | PNB FD Scheme for Road Accident Victims |
| Interest Rate | Standard card rate | +1% above card rate |
| Premature Withdrawal | Allowed (with penalty) | Not allowed |
| Loan Against FD | Available | Not allowed |
| Renewal | Optional | Automatic as per court order |
| Purpose | General investment | Compensation safeguarding |
This comparison highlights how the road accident victim scheme is stricter but also more rewarding.
Can You Use the PNB FD Calculator?
Yes, you can use the PNB FD calculator to estimate maturity values. However, keep in mind that under this scheme, you’ll need to add 1% extra to the standard rates to calculate accurate returns.
Who Should Opt for This Scheme?
- Families of road accident victims who’ve received court-ordered compensation.
- Guardians managing compensation funds for minor children.
- Individuals looking for court-compliant, safe, and interest-earning deposits.
This scheme isn’t voluntary—it’s often directed by courts. But if you fall under the eligibility criteria, it’s an excellent way to ensure financial stability.
Frequently Asked Questions (FAQs)
Q1. What are the current PNB fixed deposit schemes?
👉 PNB offers multiple FD options such as Regular Fixed Deposits, Tax Saver FD (5 years), PNB Nirmaan 444-day FD, and this special PNB FD Scheme for Road Accident Victims.
Q2. Which bank gives 9.5 interest on FD?
👉 As of 2025, no major scheduled commercial bank offers 9.5% on FD. Some Small Finance Banks (SFBs) may provide rates up to 9% for senior citizens, but large public sector banks like PNB don’t.
Q3. What is the interest rate for PNB FD Rd?
👉 PNB offers Recurring Deposits (RDs) with rates similar to regular FDs, currently ranging between 6.50% to 7.25%, depending on tenure.
Q4. Can I withdraw money early from the Road Accident Victims FD?
👉 No, premature withdrawals and partial withdrawals are not permitted.
Q5. Can loans be availed against this FD?
👉 No, loans or overdrafts are not allowed under this scheme.
Q6. Who decides the tenure of the deposit?
👉 The court determines the period, usually between 1 to 10 years.
Q7. Can minors open this FD account?
👉 Yes, minors above 10 years can open it in their own name. Below 10 years, it must be under guardianship.
Q8. Is this FD taxable?
👉 Yes, interest earned is taxable as per Income Tax rules, though depositors can claim deductions under Section 80TTB (for senior citizens).
Conclusion
The PNB FD Scheme for Road Accident Victims isn’t just another investment product—it’s a socially responsible financial safeguard. It ensures that accident compensation, often the only lifeline for families, is both protected and grown responsibly.
If you or someone you know has received MACT compensation, this FD scheme guarantees that the money remains safe, generates higher interest, and complies with court orders.
