Punjab National Bank FD Scheme 2026: Fixed deposit investors across India are again leaning toward public sector bank deposits for capital safety instead of taking higher market risks. With stable interest rate environment and preference for predictable maturity value, PNB fixed deposits are attracting salaried individuals, retirees, and conservative families. The 3–5 year FD option offering up to 7.25 percent interest is positioned as a secure medium-term savings solution for stable and low-risk financial growth.
Interest Rate And 3–5 Year Tenure Structure
Punjab National Bank generally offers fixed deposit tenure ranging from 7 days to 10 years. For mid-term deposits between 3 to 5 years, interest rate is expected around 7.00 percent to 7.25 percent depending on tenure and bank notification. Senior citizens usually receive additional 0.50 percent benefit over standard rate. Interest is compounded quarterly under cumulative option, increasing effective annual return over the selected tenure.
Safety And Capital Protection Framework
PNB fixed deposits are backed by a large public sector bank with strong government ownership support. Deposits are covered under Deposit Insurance and Credit Guarantee Corporation protection up to prescribed limit per depositor. Compared to corporate fixed deposits, public sector bank FDs offer higher capital safety even if interest rate is slightly lower than high-risk instruments.
Withdrawal Rules And Liquidity Option
Investors can choose cumulative FD option where interest is reinvested until maturity or non-cumulative payout option for monthly, quarterly, or annual interest credit. Premature withdrawal is generally allowed but may attract interest penalty of around 0.50 percent to 1.00 percent lower than applicable rate depending on tenure. Choosing appropriate tenure helps align FD maturity with financial goals.
Taxation And Documentation Requirement
Interest earned from PNB FD is taxable as per investor income tax slab. TDS may apply if annual interest crosses prescribed threshold and PAN details are updated. KYC documents including Aadhaar, PAN, and bank account details are required at the time of deposit booking. FD can usually be opened through branch visit or net banking platform.
Price And Ownership Reality
Investing ₹5 lakh at 7.25 percent interest for 5 years compounded quarterly may generate maturity value around ₹7.15 lakh to ₹7.35 lakh depending on compounding method. Senior citizens receiving around 7.75 percent may see slightly higher maturity value. The scheme suits conservative investors who prioritise stable returns, predictable growth, and secure capital preservation without exposure to market volatility.
Disclaimer: Final FD interest rates, senior citizen additional benefit, compounding frequency, premature withdrawal penalty, and taxation rules depend on official PNB circulars and RBI regulation updates. Investors should verify latest details from authorised bank branches before making investment decisions.