PNB fixed deposit rates: Since the repo rate was increased by the Reserve Bank of India (RBI), several banks have started increasing fixed deposit interest (FD) rates. Now, the public sector bank, Punjab National Bank (PNB), has also followed suit and increased interest rates on fixed deposits. The bank has hiked interest rates on fixed deposits (FDs) on deposits of less than Rs 2 crore, according to its website.
The interest rate increase, which ranges from 5 to 30 basis points, comes into effect from Monday, February 20. The state-owned bank has hiked rates on FDs maturing between 271 days and less than 1 year by 30 bps to 5.80 per cent, while for deposits maturing between one year to 665 days, the interest rate has been increased by 5 bps to 6.80 per cent. The highest rate offered to regular citizens is 7.25 per cent for deposits maturing in 666 days.
PNB FD interest rates
7 to 14 days: 3.50 per cent
15 to 29 days: 3.50 per cent
30 to 45 days: 3.50 per cent
46 to 90 days: 4.50 per cent
91 to 179 days: 4.50 per cent
180 to 270 days: 5.50 per cent
271 days to less than 1 year: 5.80 per cent
1 year: 6.80 per cent
More than 1 year to 665 days: 6.80 per cent
For FDs maturing in 666 days: 7.25 per cent
667 days to 2 years: 6.80 per cent
More than 2 year and upto 3 years: 7 per cent
More than 3 years and upto 5 years: 6.50 per cent
More than 5 years and upto 10 years: 6.50 per cent
PNB’s announcement comes after private sector lender HDFC Bank on Saturday raised its interest rates on bulk FDs of more than Rs 2 crore to Rs 5 crore. Earlier, India's largest public sector bank SBI (State Bank of India), Axis Bank, Kotak Mahindra, and Federal Bank, have also increased their FD rates.
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State-owned and private lenders have started to increase their rates on fixed deposits since RBI raised repo rate, which is the rate at which the RBI lends money to commercial banks. The current repo rate in 2023 stands at 6.50%.
