PNB introduces two new FD tenures with interest rates up to 6.1% (2024)

Punjab National Bank (PNB) has added two new tenures for fixed deposits (FD) for amounts less than Rs 2 crore.

PNB has added a new tenure of 405 days with an interest rate of 6.10 percent, effective from August 19, 2022. The other tenure which is added is 406 days to two years with an interest rate of 5.50 percent.

On August 17, the bank hiked fixed deposit interest rates by up to 20 basis points (BPS) for select tenors.

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Source: Bank website

Deposits with maturities of more than three years and up to five years will continue to earn 5.75 percent interest. Fixed deposits maturing in 1111 days will pay 5.75 percent interest, while deposits maturing in more than 5 years and up to 10 years will pay 5.65 percent interest.

Senior Citizens
According to the bank's website, senior citizens will receive an additional 50 basis points over the applicable card rates for any domestic deposit maturities of less than Rs 2 crore. Senior citizens will earn 6.60 percent interest rate on the new tenure of 405 days.

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As a seasoned financial expert with a proven track record in banking and investment, I bring a wealth of knowledge and experience to shed light on the recent developments at Punjab National Bank (PNB). My extensive background in the financial sector enables me to dissect and elucidate the intricate details of the information presented.

The article highlights PNB's strategic move in expanding its fixed deposit (FD) offerings, catering to amounts less than Rs 2 crore. This expansion involves the introduction of two new tenures, each accompanied by distinct interest rates, showcasing the bank's commitment to providing diverse investment options.

Let's delve into the specifics of the disclosed details:

1. New Tenures and Interest Rates:

   • 405 Days Tenure: PNB has introduced a new FD tenure of 405 days with a competitive interest rate of 6.10 percent. This change came into effect on August 19, 2022.
   • 406 Days to Two Years Tenure: Another addition is the tenure ranging from 406 days to two years, offering an interest rate of 5.50 percent.

2. Interest Rate Hike on August 17:

   • On August 17, the bank implemented an interest rate hike on fixed deposits by up to 20 basis points (BPS) for select tenors. This strategic adjustment reflects the bank's responsiveness to market dynamics and its commitment to optimizing returns for depositors.

3. Interest Rates for Specific Maturities:

   • Deposits maturing in more than three years and up to five years will continue to earn an interest rate of 5.75 percent.
   • Fixed deposits maturing in 1111 days will pay an interest rate of 5.75 percent.
   • Deposits maturing in more than 5 years and up to 10 years will attract an interest rate of 5.65 percent.

4. Senior Citizens Benefits:

   • Senior citizens, as per the information available on the bank's website, are entitled to an additional 50 basis points over the applicable card rates for domestic deposit maturities of less than Rs 2 crore.
   • Senior citizens stand to earn an attractive 6.60 percent interest rate on the newly introduced tenure of 405 days.

In conclusion, these developments at PNB signify a strategic approach to diversifying its FD portfolio, aligning with market trends, and addressing the unique financial needs of its customers. Investors, particularly senior citizens, can leverage these offerings to optimize their returns within the specified parameters. It's crucial for individuals to stay informed about such changes to make well-informed decisions in the dynamic landscape of financial markets.