PNB Slashes FD Rates for Second Time in a Month, SBI Also Revises Interest on Fixed Deposits

Punjab National Bank (PNB), one of India’s largest public sector banks, has once again slashed its Fixed Deposit (FD) interest rates — the second such reduction within a month. Effective from May 1, this revision comes shortly after the April rate cut and applies to FDs below ₹3 crore.

According to PNB’s latest circular, the new interest rates on FDs ranging from 7 days to 10 years will now vary between 3.5% and 7.1%, depending on the tenure. The highest rate of 7.1% is offered for 390-day deposits.

PNB Slashes FD Rates for Second Time in a Month, SBI Also Revises Interest on Fixed Deposits

Senior Citizen FD Rates – Special Boost:

PNB continues to provide additional interest benefits to senior citizens:

For customers aged 60–80 years:

50 basis points extra for FDs of 5 years

80 basis points extra for FDs over 5 years

Final rates range from 4% to 7.6%

For Super Senior Citizens (80+ years):

4.3% for 5-year FDs

Up to 7.9% for FDs above 5 years

These revised rates are part of PNB’s special provision to encourage savings among the elderly population.

---

SBI Also Revises Fixed Deposit Rates:

India’s largest public sector bank, State Bank of India (SBI), has also announced revised FD rates:

For 1 to 2-year tenure:

General public will now get 6.7%, down from 6.8%

Senior citizens will get 7.2%, down from 7.3%

For 2 to 3-year tenure:

General interest rate: 6.9%

Senior citizen rate: 7.4%

The back-to-back rate reductions by top government banks reflect a cautious monetary outlook and signal possible adjustments aligned with the RBI’s future policy decisions.