When it comes to investment, most Indians prefer Fixed Deposits (FDs). A bank FD is considered one of the safest and most reliable investment options because it guarantees fixed returns. Unlike market-linked instruments such as mutual funds or stocks, FDs provide predetermined interest rates at the time of investment.
This means you know exactly how much you will earn at maturity, regardless of market fluctuations. Moreover, your principal amount is fully safe, which makes FD an attractive choice for risk-averse investors who prioritize safety and stability over high but uncertain returns.
In 2025, several banks have revised their FD interest rates. Among them, Punjab National Bank (PNB), one of India’s largest public sector banks, is offering highly competitive rates. If you are planning to invest in a fixed deposit, PNB’s FD schemes can be a great option for assured returns and financial security.
Table of Contents
What is a Fixed Deposit (FD) and Why Choose It?
A Fixed Deposit (FD) is a financial product where you deposit a lump sum amount with a bank for a fixed tenure at a predetermined interest rate.
✅ Benefits of FD:
- Guaranteed Returns – No market risk.
- Flexible Tenure – From 7 days to 10 years.
- Safe Investment – Backed by reputed banks.
- Additional Benefits for Senior Citizens – Higher interest rates.
- Loan Facility – You can take a loan against FD without breaking it.
This is why FDs continue to remain India’s #1 investment choice in 2025.
PNB FD Scheme 2025 – Complete Details
Punjab National Bank offers multiple FD options for both general customers and senior citizens.
🔹 PNB FD Interest Rates (2025)
| Tenure | Regular Customer | Senior Citizen |
|---|---|---|
| 7 – 45 days | 3.50% | 4.00% |
| 46 – 179 days | 4.50% | 5.00% |
| 180 – 270 days | 5.50% | 6.00% |
| 271 – <1 year | 6.00% | 6.50% |
| 1 year – 2 years | 6.80% | 7.30% |
| 2 years – 3 years | 7.00% | 7.50% |
| 3 years – 5 years | 7.00% | 7.50% |
| 5 years – 10 years | 7.25% | 7.75% |
(Rates may vary slightly depending on RBI updates and bank policies.)
PNB FD Example – How Much Will You Earn?
Let’s understand with real examples.
💡 Example 1 – ₹2 Lakh for 3 years
- Regular Customer @ 7% → ₹2,46,288 (Profit ~₹46,288)
- Senior Citizen @ 7.5% → ₹2,49,943 (Profit ~₹49,943)
👉 On just ₹2 lakh, you earn nearly ₹50,000 extra in 3 years.
💡 Example 2 – ₹5 Lakh for 5 years
- Regular Customer @ 7.25% → ₹7,18,230 (Profit ~₹2,18,230)
- Senior Citizen @ 7.75% → ₹7,40,050 (Profit ~₹2,40,050)
💡 Example 3 – ₹10 Lakh for 10 years
- Regular Customer @ 7.25% → ₹20,05,230 (Profit ~₹10,05,230)
- Senior Citizen @ 7.75% → ₹20,75,850 (Profit ~₹10,75,850)
📊 These calculations prove why FDs are still one of the most profitable low-risk investments in India.
PNB FD vs Other Banks FD Rates
| Bank | Highest FD Rate (Regular) | Highest FD Rate (Senior Citizen) |
|---|---|---|
| PNB | 7.25% | 7.75% |
| SBI | 7.10% | 7.60% |
| HDFC Bank | 7.20% | 7.70% |
| ICICI Bank | 7.10% | 7.60% |
| Bandhan Bank | 8.50% | 9.00% |
| RBL Bank | 8.00% | 8.50% |
👉 PNB offers very competitive rates compared to top private banks like HDFC and ICICI. However, smaller banks like Bandhan and RBL sometimes offer higher rates, but with relatively lower safety perception compared to a trusted PSU bank like PNB.
Taxation on FD Returns
Many investors forget about taxation. Here’s the truth:
- FD interest is fully taxable as per your income tax slab.
- If FD interest exceeds ₹40,000 in a year (₹50,000 for senior citizens), TDS (10%) is deducted automatically.
- You can submit Form 15G/15H to avoid TDS if your income is below the taxable limit.
💡 Pro Tip: To save tax, you can also invest in PNB’s 5-year Tax-Saving FD (eligible under Section 80C deduction, up to ₹1.5 lakh).
Benefits of PNB FD Investment
✅ Guaranteed safe returns
✅ Attractive rates (up to 7.75%)
✅ Extra interest for senior citizens
✅ Flexible tenure (7 days – 10 years)
✅ Loan/Overdraft facility against FD
✅ Trusted PSU bank with strong reputation
Risks & Limitations of FD
❌ Lower returns than stock market or mutual funds
❌ Interest is taxable
❌ Inflation may reduce real return
❌ Premature withdrawal penalty
PNB FD vs Other Investment Options
| Investment Option | Risk Level | Average Return | Liquidity | Tax Benefits |
|---|---|---|---|---|
| PNB FD | Very Low | 6% – 7.75% | Moderate | Yes (5-yr FD) |
| RD (Recurring) | Very Low | 6% – 7.50% | Moderate | Yes (5-yr) |
| Mutual Funds SIP | Medium-High | 10% – 15% | High | Yes (ELSS) |
| Gold Investment | Medium | 6% – 12% | High | No |
| Stock Market | High | 12% – 20% | Very High | Yes (LTCG) |
👉 If you want safety + assured returns, FD is better. If you want higher wealth growth, mutual funds & equities may be more suitable.
How to Open a PNB FD?
✅ Online Method:
- Login to PNB NetBanking or PNB One Mobile App
- Select Fixed Deposit option
- Choose Tenure & Amount
- Confirm & Invest instantly
✅ Offline Method:
- Visit the nearest PNB branch
- Fill FD opening form
- Submit PAN, Aadhaar, and KYC documents
- Deposit cash/cheque & open FD
FAQs on PNB FD Scheme
Q1. What is the minimum deposit for PNB FD?
👉 ₹1,000 (varies with scheme).
Q2. What is the maximum PNB FD rate in 2025?
👉 7.25% (regular) and 7.75% (senior citizens).
Q3. Is PNB FD safe?
👉 Yes, it is a government-owned PSU bank with high safety.
Q4. Can I break my FD before maturity?
👉 Yes, but a small penalty of 1% on interest applies.
Q5. Does PNB offer a Tax-Saving FD?
👉 Yes, 5-year lock-in FD with Section 80C benefits.
Q6. Which is better: PNB FD or SBI FD?
👉 Both are safe, but rates vary slightly. PNB currently offers higher returns.
Conclusion
If you are looking for safe, guaranteed, and attractive returns in 2025, the PNB FD scheme is an excellent choice. With up to 7.75% interest for senior citizens and flexible tenure options, PNB ensures your money grows steadily without risk.
An investment of ₹2 lakh can grow into ₹2.5 lakh in just 3 years, giving you a profit of nearly ₹50,000. Whether you are planning short-term savings or long-term wealth growth, PNB FDs provide security + returns + trust.
