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.