PNB Reduces Fixed Deposit Interest Rates
PNB Details: Punjab National Bank (PNB), one of India's leading public sector banks, has once again reduced its fixed deposit (FD) interest rates. These new rates came into effect on May 1, 2025, resulting in lower returns for FD investors.
Impact of PNB's FD Interest Rate Reduction
Following a previous interest rate cut in April 2025, PNB has implemented a second reduction affecting certain FD tenures. The interest rate on FDs maturing in 270 days has been reduced from 6.25% to 6%. Similarly, the rate for FDs maturing between 271 and 299 days has decreased from 6.50% to 6.25%.
List of New Interest Rates
- 270-day FD: Reduced from 6.25% to 6%
- 271-299 day FD: Reduced from 6.50% to 6.25%
- 303-day FD: Reduced from 6.40% to 6.15%
- 304-day to 1-year FD: Reduced from 6.50% to 6.25%
- 1-year FD: Reduced from 6.80% to 6.70%
Implications for FD Investors
This change may be disappointing for investors planning to invest in FDs expecting higher interest rates. The reductions may be attributed to the recent repo rate cut by the Reserve Bank of India (RBI), which impacts banks' lending rates.
While banking institutions like PNB are still considered safe investment options, the lower interest rates may prompt investors to reassess their financial plans.
What should investors do?
If you are considering investing in an FD, it is crucial to obtain complete information about PNB's revised interest rates and reconsider your investment decision. Furthermore, evaluate the interest rates offered by other banks and financial institutions.
