Punjab National Bank FD Scheme 2026: Fixed income investors and conservative savers across India are once again leaning toward public sector bank deposits instead of taking exposure to market volatility. With competitive interest rates and strong government ownership backing, Punjab National Bank fixed deposits are attracting retirees, salaried professionals, and middle-income families who prefer predictable maturity value. The scheme offering up to 7.25 percent fixed interest combines stable returns with public sector bank safety for medium-term financial planning.
Interest Rate And Tenure Structure
Punjab National Bank generally offers FD tenures ranging from 7 days to 10 years depending on investor preference. For mid-term deposits between 3 to 5 years, interest rate is expected up to 7.25 percent depending on tenure and bank notification. Senior citizens usually receive additional 0.50 percent interest benefit above standard rate, increasing overall effective yield. Interest is compounded quarterly under cumulative option for better long-term growth.
Also Read: Kotak Mahindra Bank FD 2026: 7.50% High Interest Ke Saath Short-Term Aur Long-Term Secure Option
Government Bank Safety And Deposit Protection
PNB is a major public sector bank with strong government ownership presence. Fixed deposits are covered under Deposit Insurance and Credit Guarantee Corporation protection up to the prescribed limit per depositor. Compared to corporate deposits, public sector bank FDs offer higher capital protection even if the interest rate is slightly lower than high-risk instruments.
Withdrawal Rules And Liquidity Flexibility
Investors can opt for cumulative FD where interest is reinvested until maturity or non-cumulative option with monthly, quarterly, or annual interest payout. Premature withdrawal is generally allowed but may attract interest penalty of around 0.50 percent to 1.00 percent lower than the contracted rate depending on tenure and bank policy. Selecting proper tenure helps align FD maturity with financial goals.
Taxation And Booking Process
Interest earned from PNB FD is taxable as per investor income tax slab. TDS is deducted if annual interest exceeds prescribed threshold and PAN details are updated. KYC documents including Aadhaar, PAN, and bank account details are required at the time of booking. FD can be opened through branch visit or net banking platform.
Price And Ownership Reality (Return And Maturity Impact)
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. This FD option 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.