Fixed Deposits (FDs) continue to be one of the most trusted and safest investment options in India. For conservative investors looking for guaranteed returns, low risk, and easy liquidity, Punjab National Bank (PNB) offers attractive FD schemes tailored to various tenures and investor profiles.
In this blog, we’ll focus on how much return you can get by investing ₹1 lakh in a PNB FD for 2 years, while also understanding the features, interest rates, and benefits of PNB’s fixed deposit offerings in 2025.
📌 Why Choose PNB Fixed Deposits in 2025?
PNB is one of India’s largest public sector banks, known for reliable banking services and attractive interest rates on FDs. With flexible tenures, loan facility, and guaranteed returns, PNB FDs are ideal for short- and long-term savings.
Key Benefits:
- Safe and secure investment
- Attractive interest rates
- Tax-saving FD options available
- Premature withdrawal allowed (with conditions)
- Loan against FD up to 90%
- Auto-renewal and nomination facility
💰 Interest Rates on PNB FD (As of 2025)
PNB revises its FD interest rates periodically. Here are the current interest rates for a 2-year fixed deposit (as of July 2025):
| Customer Type | Interest Rate (2 years) |
|---|---|
| Regular Citizens | 7.00% p.a. |
| Senior Citizens | 7.50% p.a. |
| Super Senior (80+) | 7.80% p.a. |
Note: Rates are indicative and subject to change. Actual rate depends on tenure and amount.
📊 Return on ₹1 Lakh FD for 2 Years at PNB
Let’s calculate the maturity amount and interest earned on a ₹1 lakh FD over 2 years at different interest rates.
➤ For Regular Citizens (7.00% p.a.)
- Principal: ₹1,00,000
- Interest Rate: 7.00% per annum
- Tenure: 2 years
- Interest (Compounded quarterly): ₹14,974 (approx.)
- Maturity Amount: ₹1,14,974
➤ For Senior Citizens (7.50% p.a.)
- Principal: ₹1,00,000
- Interest Rate: 7.50% per annum
- Tenure: 2 years
- Interest Earned: ₹16,165 (approx.)
- Maturity Amount: ₹1,16,165
➤ For Super Senior Citizens (7.80% p.a.)
- Principal: ₹1,00,000
- Interest Rate: 7.80% per annum
- Tenure: 2 years
- Interest Earned: ₹16,899 (approx.)
- Maturity Amount: ₹1,16,899
As seen above, even with a modest investment of ₹1 lakh, PNB FDs provide steady and assured income, especially beneficial for senior citizens.
🧾 Types of PNB Fixed Deposit Schemes
PNB offers a variety of FD schemes based on investor needs:
1. ✅ Regular Fixed Deposit
- Tenure: 7 days to 10 years
- Minimum deposit: ₹1,000
- Premature withdrawal allowed
- Interest paid monthly/quarterly/annually or on maturity
2. ✅ Tax Saver Fixed Deposit
- Lock-in: 5 years
- Tax deduction under Section 80C up to ₹1.5 lakh
- Interest taxable
- No premature withdrawal allowed
3. ✅ PNB Sugam Fixed Deposit
- Flexible withdrawal in multiples
- Higher liquidity
- Ideal for small savers
4. ✅ FD for Senior Citizens
- Additional interest (usually +0.50%)
- Monthly interest payout option for pensioners
- Safe for retirement planning
🧮 How Is FD Interest Calculated?
PNB uses quarterly compounding to calculate interest. The formula is:
A = P (1 + r/n)^(nt)
Where,
A = Maturity amount
P = Principal amount
r = Annual interest rate
n = Number of compounding periods per year (4 for quarterly)
t = Number of years
This compounding helps the deposit grow faster over time.
🛡️ Is PNB FD Safe?
Yes, PNB is a government-owned bank, and your deposits are insured up to ₹5 lakh by DICGC (Deposit Insurance and Credit Guarantee Corporation). This makes it one of the safest investment avenues in India.
🧾 Taxation on FD Returns
- Interest earned on FD is taxable under ‘Income from Other Sources’
- If total interest exceeds ₹40,000/year (₹50,000 for senior citizens), TDS at 10% will be deducted
- To avoid TDS, submit Form 15G/15H (if eligible)
🔐 Loan Against FD
Need emergency funds? You can take a loan of up to 90% of the FD amount at an interest rate slightly above the FD rate. It’s a great alternative to breaking your FD early.
📝 How to Open an FD in PNB?
You can open a fixed deposit account via:
- 🏦 Branch Visit
- 📱 PNB ONE Mobile App
- 💻 Net Banking Portal
Required Documents:
- PAN Card
- Aadhaar or other ID proof
- Passport-size photo
- Active savings account in PNB
✅ Pros and Cons of PNB FD
✔ Pros:
- Government bank safety
- Guaranteed returns
- Flexible tenure options
- Higher interest for seniors
- Loan facility available
❌ Cons:
- Returns are taxable
- Lower returns than mutual funds or stocks
- Premature withdrawal may incur penalty
🏁 Final Verdict: Is PNB FD a Good Option in 2025?
If you’re looking for a safe, fixed-income investment with zero risk and assured returns, PNB’s 2-year FD is an excellent choice. Whether you are saving for a short-term goal, want to park idle funds, or need a stable post-retirement income, this FD ticks all boxes.
✅ A ₹1 lakh investment in PNB FD can fetch you up to ₹16,899 in 2 years, depending on your age and chosen scheme. That’s a solid return with capital safety and liquidity.
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