Fixed Deposits (FDs) are among the safest and most popular investment options in India. Whether you’re a salaried individual, senior citizen, or a risk-averse investor, FDs offer guaranteed returns and flexibility in tenure. One of India’s largest public sector banks, Punjab National Bank (PNB), offers competitive interest rates on its fixed deposit schemes in 2025.
If you are planning to invest an amount ranging from ₹1 lakh to ₹10 lakh in PNB FDs, this guide will walk you through the expected returns, applicable interest rates, senior citizen benefits, and maturity calculations.
🔍 Key Features of PNB Fixed Deposits
- Minimum Deposit: ₹100
- Maximum Deposit: No upper limit
- Tenure: 7 days to 10 years
- Interest Rates (as of July 2025):
- Regular customers: 3.50% to 7.25%
- Senior citizens: Extra 0.50% on applicable rates
- Compounding: Quarterly basis
- Tax Deduction: TDS applicable as per Section 194A
📈 PNB Fixed Deposit Interest Rates (July 2025) – General Public
| Tenure | Interest Rate (Regular) | Interest Rate (Senior Citizens) |
|---|---|---|
| 7 days to 45 days | 3.50% | 4.00% |
| 46 to 179 days | 4.50% | 5.00% |
| 180 days to <1 year | 5.75% | 6.25% |
| 1 year to 443 days | 6.75% | 7.25% |
| 444 days (Special FD) | 7.25% | 7.75% |
| 445 days to 2 years | 6.80% | 7.30% |
| 3 years to 5 years | 6.50% | 7.00% |
| 5 years and above | 6.50% | 7.00% |
💰 Returns on PNB Fixed Deposit for ₹1 Lakh to ₹10 Lakh
Let’s consider the returns on a 1-year and 5-year FD, which are commonly chosen tenures by investors.
📌 For Regular Customers:
| Amount | 1 Year (6.75%) | 5 Years (6.50%) |
|---|---|---|
| ₹1,00,000 | ₹1,06,975 | ₹1,37,342 |
| ₹2,00,000 | ₹2,13,950 | ₹2,74,684 |
| ₹3,00,000 | ₹3,20,925 | ₹4,12,026 |
| ₹5,00,000 | ₹5,34,875 | ₹6,86,710 |
| ₹7,00,000 | ₹7,48,825 | ₹9,61,394 |
| ₹10,00,000 | ₹10,69,750 | ₹13,73,420 |
📌 For Senior Citizens:
| Amount | 1 Year (7.25%) | 5 Years (7.00%) |
|---|---|---|
| ₹1,00,000 | ₹1,07,482 | ₹1,40,255 |
| ₹2,00,000 | ₹2,14,964 | ₹2,80,510 |
| ₹3,00,000 | ₹3,22,446 | ₹4,20,765 |
| ₹5,00,000 | ₹5,37,410 | ₹7,01,275 |
| ₹7,00,000 | ₹7,52,378 | ₹9,81,785 |
| ₹10,00,000 | ₹10,74,820 | ₹14,02,550 |
Note: These are approximate maturity amounts. Actual returns may vary based on compounding and payout options.
🎯 Which Tenure is Better for Maximum Returns?
- 1-Year FD: Good for short-term savings or parking emergency funds with quick liquidity.
- 5-Year FD: Best for long-term wealth building with higher compounding benefits and better rates.
- 444-Day FD: If you can invest for just over a year, the 444-day special FD gives the highest interest rate (up to 7.75% for seniors).
🧓 Senior Citizen Benefit
PNB offers an extra 0.50% interest on fixed deposits for individuals above 60 years of age. Additionally:
- Higher maturity value
- Special senior citizen schemes may be offered during festive seasons
🏦 Types of PNB Fixed Deposits
- Regular Term Deposit – Best for all types of investors
- Tax Saver FD (5 Years) – Up to ₹1.5 lakh under Section 80C (No premature withdrawal)
- PNB Uttam FD – No TDS, only for amounts above ₹15 lakh
- PNB Sugam Term Deposit – Flexible deposit and withdrawal amounts
💳 Interest Payout Options
You can choose:
- Quarterly payout – for regular income
- Reinvestment (compounded) – to maximize maturity value
- Monthly interest payout – useful for pensioners or retired individuals
🧾 TDS and Taxation Rules
- If interest income exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, TDS at 10% is applicable.
- Submit Form 15G/15H if your income is below the taxable limit.
📝 How to Open a PNB Fixed Deposit
- Visit your nearest PNB branch or use PNB Internet Banking or PNB One App.
- Provide PAN, Aadhaar, and address proof.
- Choose deposit amount, tenure, and interest payout mode.
- FD receipt will be issued instantly.
🧠 Expert Tips for Maximizing FD Returns
- Always compare special tenure offers like 444 days or 666 days.
- If you don’t need regular income, opt for cumulative FDs to benefit from compounding.
- Diversify FD amounts in different tenures for liquidity and long-term growth.
- Use senior citizen benefits if eligible – higher returns with the same investment.
📌 Conclusion
Punjab National Bank offers safe and reliable fixed deposit options with attractive interest rates in 2025. Whether you invest ₹1 lakh or ₹10 lakh, your money grows steadily and securely. The best part – senior citizens get even more attractive returns!
So, whether you are saving for your child’s education, planning for retirement, or just want a stress-free investment — PNB Fixed Deposit is a solid choice.
