In the ever-changing arena of banking, fixed deposits (FDs) remain constant for individuals who want to ensure the secure growth of their savings. Recently, one of the largest and most trusted government banks in India, Punjab National Bank (PNB), surprised the customers by announcing a sharp slashing of its FD interest rates from March 1, 2025.
The announcement has stirred mixed reactions from the huge customer base, especially those dependent on FDs for steady returns.
Changes Announced in PNB’s FD Scheme
PNB has decided to cut FD interest rates by 0.75%, and it has brought ripples across the banking sector. To millions of customers, it meant a reduction in their returns for their hard-earned money. The revised rates are now effective on the FDs from a duration of 7 days to 10 years.
Although the bank also offers competitive rates for deposits above ₹3 crore, many depositors have started to change their investment pattern given the revised rates for deposits under this limit. This conforms with the general trend of government banks now announcing reduced interest rates compared with private banks, which pay higher interest rates to attract customers.
Why Is This Important FD Rates?
Fixed deposits are the bedrock of financial planning for a large number of Indians. These help in the safe and predictable growth of savings and generally attract risk-averse investors. Given that PNB has now taken this step, so the onus is now on the clients to find alternative ways to optimize their earnings.
Countries often offer higher interest rates on long-term FDs and less on short-term to encourage customers to tie up their cash at a bank for long spells, locking in stability for the bank and investor.
Punjab National Bank is paying this much interest on FDs of less than Rs 3 crore
- 7 days to 14 days: – 5.25 percent
- 15 days to 29 days: – 5.25 percent
- 30 days to 45 days: – 5.25 percent
- 46 days to 60 days: 6.25 percent
- 61 days to 90 days: 6.25 percent
- 91 days to 179 days: 6.50 percent
- 180 days to 270 days: 6.65 percent
- 271 days to 299 days: 6.75 percent
- 300 days: 7.00 percent
- 301 days to 302 days – 6.75 percent
- 303 days – 7.00 percent
- 304 days to less than one year – 6.50 percent
- 1 year: 6.75 percent
- More than 1 year to 399 days: 6.80 percent
- 400 days: 6.80 percent
- 401 days to 505 days: 6.80 percent
- 506 days – 6.70 percent
- 507 days to 2 years: 6.80 percent
- Above 2 years to 3 years: 6.50 percent
- More than three years and up to 1203 days – 6.25 percent
- 1204 days – 6.35 percent
- 5 years to 10 years: 5.60 percent