One of India’s major public sector banks, Punjab National Bank (PNB), has revised the interest rates for fixed deposits (FDs) in 2025. The new rate structures extend competitive returns to investors, including senior citizens who attract special benefits. Whether requirements are for planned savings or pedigreed liquidity, PNB’s FD schemes do provide a safe and rewarding alternative.
Tenure Options from 7 Days to 10 Years
With FD tenure flexibility between 7 days and 10 years, PNB gives its customers the leeway to decide their investments according to their financial goals. Lesser duration FDs are good for liquidity while longer-duration FDs help in wealth-building at assured returns.
Minimum Deposit and Lock-In Period
The minimum deposit amount is ₹1,000. There is no maximum. For tax-saving FDs, a 5-year lock-in applies. Regular FDs allow premature withdrawal on payment of penalties.
Extra Perks for Senior Citizens
Additional interest of 0.50% is payable to senior citizens for most tenures, and therefore, a major portion of PNB FDs is held by retirees looking for a stable monthly income or lump-sum maturity benefits.
Latest PNB FD Interest Rates (Effective September 2025)
Here’s a snapshot of the updated interest rates for deposits below ₹3 crore:
| Tenure | General Rate (%) | Senior Citizen Rate (%) |
|---|---|---|
| 7 to 45 days | 3.00 | 3.50 |
| 46 to 90 days | 4.50 | 5.00 |
| 91 to 179 days | 4.90 | 5.40 |
| 180 to 270 days | 5.60 | 6.10 |
| 271 to 303 days | 5.60 | 6.10 |
| 304 to 365 days | 6.00 | 6.50 |
| 1 year to 2 years | 6.60 | 7.10 |
| 2 years to 3 years | 6.25 | 6.75 |
| 3 years to 5 years | 6.10 | 6.60 |
| 5 years to 10 years | 6.10 | 6.60 |
Tax Implications
Interest on FDs is taxable under the Income Tax Act. Tax Deducted at Source (TDS) is applicable if total interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). One can submit Form 15G/15H to avoid TDS, if eligible.
How to Open FD in PNB
Financiers can open an FD online through PNB Net Banking or Mobile app, or by visiting the bank branch. Aadhaar and PAN should be linked for smooth processing.
Final Thoughts
PNB Fixed Deposit Rates for 2025 provide all-ranges-of-age with a secure-and-flexible investment option. With handsome returns and benefits for senior citizens, it proves to be a wise way of nurturing savings with little risk involved.