PNB FD Update 2026: Fixed deposits (FDs) continue to be the preferred choice of Indians for safe investments and guaranteed returns. Punjab National Bank (PNB), a leading public sector bank, recently revised its interest rates. According to the latest report for February 2026, banks have updated their rates following a total 1.25% cut in the repo rate by the RBI over the past year. Despite this, PNB is offering attractive interest rates of up to 7.2% on FDs to its customers.
PNB’s New Interest Rates
You can make FDs with long-term tenures ranging from 7 days to 10 years at PNB. The bank has set competitive interest rates for different categories. Rates for general citizens start at 3.00% and go up to 6.40%. Senior citizens are always honoured by the bank, offering an additional 0.50% interest rate, taking their maximum rate to 6.90%.
Furthermore, very senior citizens over 80 years of age benefit from an additional 0.80% interest, up to a maximum of 7.20%. The bank’s most popular 390-day special FD is the ideal option for those seeking maximum returns in a short period of time.
How much will the return on an investment of ₹2 lakh be
If you’re planning to invest for a long period of 5 years (60 months), this can provide a solid foundation for financial security. For this period, the bank currently offers an annual interest rate of 6.10% for general citizens and 6.60% for senior citizens.
If an average citizen invests ₹200,000 for 5 years, they will receive a total of ₹270,701 at maturity at 6.10% interest rate, of which ₹70,701 will be earned as interest. For senior citizens, the same investment will grow to ₹277,445 at maturity at 6.60% interest rate, giving them a direct benefit of ₹77,445. This calculation is based on quarterly compounding.
Safety and Tax Savings
PNB is a government-controlled bank, so your money and the returns on it are completely safe. If you choose a PNB Tax Saver FD, you also get the double benefit of tax exemption under Section 80C of the Income Tax Act on investments up to ₹1.5 lakh. Keep in mind that tax-saving FDs have a mandatory lock-in period of 5 years, meaning you cannot withdraw funds before that time.
In other standard FD schemes, banks allow premature withdrawals, though a small penalty applies, depending on the bank’s rules. You can also start your FD in a jiffy from home using the PNB One app or internet banking.
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Vikram Singh
Author at TimesBull covering breaking news and current affairs.
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