If you are looking for a safe and easy way to grow your money, a Fixed Deposit (FD) can be a good choice. Punjab National Bank (PNB), one of India’s largest public sector banks, is currently offering attractive interest rates on FDs. This means if you invest ₹2 lakh in a PNB FD, you can earn a good return without taking any market risk.
In this article, we will explain the interest rates, tenure options, maturity amount, and important points you should know before investing.
What is a Fixed Deposit (FD)?
A Fixed Deposit is a type of savings option where you deposit a certain amount of money with a bank for a fixed period of time. The bank pays you interest on this amount at a pre-decided rate. At the end of the period (maturity), you get back your original money plus the interest earned.
The main benefits of an FD are:
- Safe investment (almost no risk)
- Guaranteed returns
- Flexible tenure (from 7 days to several years)
- Higher interest than savings accounts
PNB FD Interest Rates (2025)
PNB is offering different interest rates depending on how long you keep your money deposited. As of now:
- General customers: 3.50% to 7.25% per year
- Senior citizens: 4.00% to 7.75% per year
(Rates can change anytime, so always check the latest rates on PNB’s official website before investing.)
Example: FD of ₹2 Lakh
Let’s see how much you can earn by investing ₹2 lakh in a PNB FD.
| Tenure (Time) | Interest Rate (General) | Maturity Amount (Approx.) |
| 1 year | 6.75% | ₹2,13,500 |
| 2 years | 7.00% | ₹2,29,000 |
| 3 years | 7.25% | ₹2,46,000 |
| 5 years | 6.50% | ₹2,75,000 |
(Figures are approximate and may vary slightly due to compounding and tax deductions.)
Benefits of Investing in PNB FD
- Attractive Interest – Rates up to 7.25% for general customers and 7.75% for senior citizens.
- Safe and Secure – Being a public sector bank, PNB offers strong trust and reliability.
- Flexible Tenure – You can choose from a few days to 10 years.
- Loan Facility – You can get a loan against your FD in case of urgent needs.
- Premature Withdrawal – You can close your FD before maturity (with some penalty).
How to Open a PNB FD
Opening an FD in PNB is very easy. You can do it:
- Online through PNB’s net banking or mobile banking app.
- Offline by visiting your nearest PNB branch.
Steps for Opening FD Online:
- Login to PNB Net Banking.
- Go to Deposit Section.
- Select Open Fixed Deposit.
- Choose amount (₹2 lakh in this case) and tenure.
- Confirm and submit.
Tax on FD Interest
The interest you earn on an FD is taxable.
- If your annual interest income is more than ₹40,000 (₹50,000 for senior citizens), the bank will deduct TDS (Tax Deducted at Source) at 10%.
- You can also save tax by investing in PNB Tax Saver FD (5-year lock-in), which gives you benefits under Section 80C of Income Tax Act.
Tips for Getting the Most from Your FD
- Choose the Right Tenure – Pick a period where the interest rate is highest.
- Reinvest Interest – Select the compounding option for more returns.
- Senior Citizen Advantage – If you are above 60, make sure to opt for higher senior citizen rates.
- Ladder Your FDs – Split your money into multiple FDs with different maturities for flexibility.
Final Words
If you have ₹2 lakh to invest and want a safe, guaranteed return, PNB’s FD is a good option. With interest rates going up to 7.25% for general customers and 7.75% for senior citizens, your money can grow well over time. Just make sure to check the latest rates and choose the right tenure for maximum benefits.
A Fixed Deposit may not make you rich overnight, but it is a steady and reliable way to grow your savings without worrying about market ups and downs.
