Interest Rates
3.25% – 6.80%
Time Period
7 days – 10 years
Min - Max Amount
1,000 - No upper limit
Compounding
Quarterly
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Expected Rate of Return
The future value of investment will be
₹ 0
Invested Amount
₹ 10,000
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Punjab National Bank (PNB), established on April 12, 1895, in Lahore, holds the distinction of being India’s first Swadeshi bank. Founded with an authorised capital of ₹2 lakh and working capital of ₹20,000, PNB was the first financial institution entirely managed and funded by Indians.
Reflecting strong nationalistic values, the bank has, over time, merged or amalgamated with nine other banks, contributing to its growth and legacy. As of December 2024, PNB operates through a widespread network comprising 10,168 domestic branches, 2 international branches, 12,034 ATMs, and 32,139 business correspondents, totalling 54,341 delivery channels across the country.
PNB offers a range of fixed deposit schemes with interest rates varying from 3.25% to 6.80% per annum, depending on the tenure and deposit type. These deposits are locked in for the selected term, and additional deposits or withdrawals are not permitted during the tenure. The principal remains secured, and the applicable interest rate is fixed at the time of opening.
Tenure | Regular Customers (% p.a.) | Senior Citizens (% p.a.) |
7 to 14 Days | 3.25 | 3.75 |
15 to 29 Days | 3.25 | 3.75 |
30 to 45 Days | 3.25 | 3.75 |
46 to 60 Days | 4.50 | 5.00 |
61 to 90 Days | 4.50 | 5.00 |
91 to 179 Days | 4.90 | 5.40 |
180 to 270 Days | 5.80 | 6.30 |
271 Days to 302 Days | 6.00 | 6.50 |
303 Days | 5.90 | 6.40 |
304 Days to < 1 Year | 6.00 | 6.50 |
1 Year | 6.40 | 6.90 |
> 1 Year to 389 Days | 6.40 | 6.90 |
390 Days | 6.70 | 7.20 |
391 Days to 505 Days | 6.40 | 6.90 |
506 Days** | 6.30 | 6.80 |
507 Days to 2 Years | 6.40 | 6.90 |
> 2 Years to 3 Years | 6.40 | 6.90 |
> 3 Years to 1203 Days | 6.50 | 7.00 |
1204 Days** | 6.40 | 6.90 |
1205 Days to 5 Years | 6.50 | 7.00 |
> 5 Years to 1894 Days | 6.00 | 6.80 |
1895 Days** | 5.85 | 6.65 |
1896 Days to 10 Years | 6.00 | 6.80 |
Note: The data is as of June 18, 2025
These FDs range between 7 days to 12 months, offering interest rates from 3.25% to 6.90% for regular customers and 3.55% to 7.05% for senior citizens. This type of FD can be suitable for short-term savings and quick liquidity.
These FDs range from 1 year to less than 3 years, with interest rates between 6.25% to 6.30% for regular customers and 6.75% to 6.80% for senior citizens. This can be a suitable option for planned expenses over the medium term.
These FDs range from 3 years to 10 years, offering 6.30% for regular customers and up to 7.05% for senior citizens. This can be suitable for long-term wealth creation with stable and assured returns.
| Tenure Range | Institution Name | Interest Rate Range (% p.a.) |
|---|---|---|
 | 1 to 5 years | 6.05 - 7.05› |
 | 1 to 5 years | 6.50 – 7.25› |
 | 1 to 5 years | 5.85 – 7.40› |
 | 1 to 5 years | 6.00 – 7.00› |
 | 1 to 5 years | 7.00 – 7.40› |
Note: The data is as of July 8, 2025
PNB Bank allows various individuals and entities to open a fixed deposit account, provided they meet the eligibility norms. The following categories are eligible:
PNB provides the ‘PNB Tax Savings Scheme, 2006’, where investors can deposit a minimum of ₹1,000, with additional deposits allowed in multiples of ₹100. The maximum investment permitted under this scheme is ₹1.5 lakh. It comes with a mandatory lock-in period of 5 years, though the account can remain active for up to 10 years.
Deposits made under this scheme qualify for tax benefits under Section 80C of the Income Tax Act, 1961. Senior citizens receive an extra 0.5% interest over the standard rate, while PNB employees and pensioners enjoy an additional 1% interest.
Interest earned on these deposits is subject to Tax Deducted at Source (TDS). TDS is deducted on interest earned as per the prevailing Income Tax rules. However, depositors can submit Form 15G or 15H to request exemption from tax deduction, subject to eligibility under the Income Tax guidelines.
PNB allows premature withdrawal of Fixed Deposits; however, it typically comes with a penalty. For deposits up to ₹5 lakh, a 0.50% deduction is applied on the interest rate, while FDs above ₹5 lakh attract a 1% penalty. This deduction is made from the interest earned, which may lower the final rate below the originally agreed rate.
You can apply online via PNB Net Banking or the YONO app. Log in, select the fixed deposit option, enter deposit details like amount, tenure, and maturity instructions, review the information, and submit your application digitally.
The minimum deposit amount required to open a fixed deposit with PNB is ₹1,000. This applies to most FD schemes offered by the bank, including regular FDs and tax-saving deposits under the PNB Tax Savings Scheme, 2006.
PNB offers flexible FD tenures ranging from 7 days to 10 years. Depending on your investment goal, you can choose short-term, medium-term, or long-term FDs with varying interest rates and payout frequencies.
Individuals, including NRIs, minors with guardians, HUFs, companies, trusts, and government bodies, can open a digital FD account with PNB, subject to KYC compliance and valid bank account details like account number and IFSC code.
As of June 15, 2025, the highest interest rate offered by PNB for fixed deposits is 7.05% per annum for senior citizens and 6.05% for regular customers, depending on the chosen deposit tenure and scheme.
Use PNB Bank’s FD calculator to estimate interest earnings and potential tax benefits. When planning under Section 80C, enter an investment amount up to ₹1.5 lakh to check deduction eligibility. This helps assess your post-tax returns and optimise tax savings.
To maximise FD returns, focus on compound interest via cumulative FDs. Consider laddering for flexibility and potentially higher rates. Optimise tenure and use special rates for seniors if applicable. Crucially, avoid premature withdrawals and manage tax efficiently with forms like 15G/15H.
