Following in the footsteps of banks like Yes Bank, Canara Bank, Kotak Mahindra Bank, Equitas, and Shivalik Small Finance Bank, Punjab National Bank (PNB) has now updated its Fixed Deposit (FD) interest rates as well. However, unlike minor tweaks, PNB has significantly slashed interest rates across almost all deposit tenures, with only one exception where the rate has been increased.
This revision applies to FDs with deposits below ₹3 crore, affecting both general customers and senior citizens.
According to the updated rate sheet, PNB now offers FD interest rates ranging between 3.50% to 7.10% for general depositors, across tenures spanning 7 days to 10 years.
The highest rate of 7.10% is now offered for a tenure of 390 days.
Previously, PNB offered a peak rate of 7.25% for 400-day deposits, which has now been discontinued.
Here’s a look at the major changes:
300-day FD: Slashed from 7.05% to 6.50%
303-day FD: Reduced from 7.00% to 6.40%
2 to 3-year tenure: Dropped from 7.00% to 6.75%
1204-day FD: Lowered from 6.40% to 6.25%
More than 5 years up to 1894 days: Cut from 6.50% to 6.00%
1896 days to 10 years: Now 6.00%, down from 6.50%
Interestingly, amidst the widespread reduction in rates, PNB has raised the interest rate for 1895-day deposits:
Previous rate: 5.85%
New rate: 6.35%
This makes it the only FD tenure with an increased interest payout, offering a modest return boost for long-term investors looking for mid-to-long range maturity.
PNB has also detailed the revised FD rates for senior and super senior citizens, offering them an additional interest benefit over regular customers.
For deposits up to 5 years, they receive an additional 50 basis points (bps) over the standard rate.
For deposits above 5 years, the extra benefit rises to 80 bps.
Effective rates for seniors now range between 4.00% to 7.60%, depending on tenure.
They enjoy a flat 80 bps hike across all maturity buckets, giving them one of the highest effective FD interest ranges available in the market.
This move comes amid growing speculation that banks are bracing for interest rate adjustments in sync with the Reserve Bank of India's (RBI) cautious monetary stance. With inflation showing signs of control and economic stability returning, banks are slowly aligning their deposit and lending rates to reflect reduced cost pressures.
With major banks including PNB slashing their FD rates, depositors may want to act quickly to secure higher returns while they still can—especially those considering mid-term to long-term FDs. For senior citizens, the added rate benefits still offer attractive options. However, for regular depositors, return expectations may need to be re-evaluated, especially as the trend of softening interest rates continues.
Before locking in a new FD, always compare across banks and check for special tenure-based offers that may provide better returns.
