State-run Punjab National Bank (PNB) has revised its fixed deposit interest rates in select maturities. With effect from January 1, 2019, PNB will pay interest at the rate of 5.75 per cent to the general public on fixed deposits up to Rs 1 crore for maturity periods between seven days and 45 days, according to the state-run bank's website -- pnbindia.in. In the three maturity periods - 7-14 days, 15-29 days and 30-45 days, senior citizen customers will get a return of 6.25 per cent on FDs up to Rs 1 crore. Previously, PNB paid interest at the rate of 5.7 per cent to the general public and 6.2 per cent to the senior citizens on FDs of the same amount in the three maturities.
The bank, however, kept the interest rates applicable to other maturities unchanged. On FDs up to Rs 1 crore, PNB will continue to pay an interest of 6.75 per cent to the general public, and 7.25 per cent to the senior citizens, over a maturity period of one year, according to the PNB website.
Here's a list of the new interest rates offered by PNB to its customers on domestic and NRO (non-resident ordinary) term deposits (fixed deposits) up to Rs 1 crore:
| Maturity period (term) | Interest rate applicable to domestic/NRO fixed deposits up to Rs 1 crore (with effect from 01.01.2019) | |
|---|---|---|
| For general public | For senior citizens | |
| 7 to 14 days | 5.75% | 6.25% |
| 15 to 29 days | 5.75% | 6.25% |
| 30 to 45 days | 5.75% | 6.25% |
| 46 to 90 days | 6.35% | 6.85% |
| 91 to 179 days | 6.35% | 6.85% |
| 180 days to 270 days | 6.35% | 6.85% |
| 271 days to less than 1 year | 6.35% | 6.85% |
| 1 year | 6.75% | 7.25% |
| 555 days (effective for a period of 01.11.2018 to 31.03.2019) | 6.85% | 7.35% |
| above 1 year up to 3 years | 6.75% | 7.25% |
| above 3 year up to 5 years | 6.25% | 6.75% |
| above 5 years up to 10 years | 6.25% | 6.75% |
| (Source: pnbindia.in) | ||
Fixed deposits or FDs are secure financial instruments offered by public, private sector banks, small finance banks, non-banking financial companies (NBFCs) and post offices, which fetch guaranteed returns. In a fixed deposit account, money can be invested for a higher rate of interest than savings accounts. Fixed deposit interest rates are subject to change from time to time. One can deposit a money in fixed deposits for a specific period, ranging from seven days to 10 years. Fixed deposit accounts with a lock-in period of five or 10 years are eligible for deduction in income tax under Section 80C of the Income Tax Act.
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