Are you looking for a safe, reliable, and high-return investment for the next few years? Punjab National Bank (PNB) may have just what you need. With attractive fixed deposit (FD) interest rates for 3 years, PNB is offering an opportunity to grow your savings steadily without market risks.
In this guide, we break down how much interest you can earn on a PNB FD for ₹1 lakh, ₹2 lakh, and ₹3 lakh deposits over 3 years. We’ll also cover who can invest, how to apply, and provide a simple calculation example using official interest rates as of April 2025.
PNB Bank Is Giving Good Returns in 3 Years
| Feature | Details |
|---|---|
| Bank | Punjab National Bank (PNB) |
| Scheme | Fixed Deposit (FD) |
| FD Tenure Analyzed | 3 years |
| Interest Rate (General Public) | 7.00% per annum (as of April 1, 2025) |
| Compounding Frequency | Quarterly |
| ₹1 Lakh Maturity Amount | ₹1,23,252 |
| ₹2 Lakh Maturity Amount | ₹2,46,504 |
| ₹3 Lakh Maturity Amount | ₹3,69,756 |
| Senior Citizen Rate | ~0.50% higher (Approx. 7.50%) |
In 2025, PNB Fixed Deposits for 3 years stand out as a secure and rewarding investment choice for both beginners and experienced investors. With a 7.00% annual interest rate, your savings can comfortably outpace inflation while giving you peace of mind.
Whether you’re depositing ₹1 lakh or ₹3 lakh, you’ll see your money grow steadily, especially with quarterly compounding. And if you’re a senior citizen, the returns are even better.
Why Choose PNB Fixed Deposits in 2025?
Fixed Deposits are popular in India because they combine safety, predictable returns, and simplicity. In a time when stock markets can be volatile, FDs are a comforting option—especially from a government-backed bank like Punjab National Bank, a trusted institution for over a century.
In 2025, PNB is offering 7.00% interest on 3-year FDs for general customers. This rate is competitive and well above inflation, ensuring your money retains its value while earning solid returns.
see also: A Good CIBIL Score Can Get You a Cheap Home Loan
How Much Will You Earn in 3 Years?
Let’s look at the estimated earnings using PNB’s 3-year FD interest rate of 7.00% per annum (compounded quarterly):
FD Interest Calculation Example
We used quarterly compounding, as PNB does for its FDs. Here’s how your money grows:
₹1 Lakh Deposit for 3 Years
- Interest Earned: ₹23,252
- Total Amount at Maturity: ₹1,23,252
₹2 Lakh Deposit for 3 Years
- Interest Earned: ₹46,504
- Total Amount at Maturity: ₹2,46,504
₹3 Lakh Deposit for 3 Years
- Interest Earned: ₹69,756
- Total Amount at Maturity: ₹3,69,756
Note: These figures are approximate. Final values may vary slightly based on compounding frequency, TDS (tax deducted at source), and the date of deposit.
What About Senior Citizens?
PNB offers a 0.50% higher rate for senior citizens (usually age 60+), making the 3-year FD rate approximately 7.50% for them. Let’s see how that impacts returns:
₹1 Lakh Deposit for Seniors
- Interest Earned: ₹24,338
- Total Maturity Amount: ₹1,24,338
This extra interest can make a meaningful difference, especially for retirees seeking stable income.
How to Open a PNB Fixed Deposit
Step-by-Step Guide:
Step 1: Choose Your Mode
You can open a PNB FD:
- Online via NetBanking or Mobile App
- Offline at your nearest PNB branch
Step 2: Gather Documents
- PAN card
- Aadhaar card
- Address proof
- Bank account details (if applying offline)
Step 3: Select FD Amount & Tenure
- Choose any amount from ₹1,000 and above
- For this article, we considered ₹1 lakh, ₹2 lakh, and ₹3 lakh
- Select 3 years as tenure
Step 4: Nomination & Interest Payout
- Choose reinvestment or monthly/quarterly payout
- Add a nominee for safety
Step 5: Confirm and Lock-in
- Review the terms
- Confirm your FD
- Receive your FD receipt via SMS/email or physically
Tip: Use PNB’s official FD Calculator to estimate returns before investing.
Benefits of a 3-Year PNB FD
- Guaranteed returns: Not affected by market ups and downs
- Easy to understand: Even first-time investors can manage
- Quarterly compounding: Increases your final amount
- Tax-saving options: 5-year FDs offer deductions under Section 80C
Things to Keep in Mind
Premature Withdrawal Penalty
If you withdraw your FD before maturity, a penalty of 1% may apply on the applicable rate.
TDS (Tax Deducted at Source)
If the annual interest exceeds ₹40,000 (₹50,000 for seniors), TDS is deducted at 10% (if PAN is submitted).
You can submit Form 15G/15H (if eligible) to avoid TDS.
Auto-Renewal Option
PNB offers auto-renewal on maturity—this saves you from missing reinvestment deadlines.
What Are the Eligibility Criteria?
Anyone can open a PNB FD:
- Indian residents
- NRIs (through NRE/NRO accounts)
- Minors (through guardian)
- Senior citizens
see also: Time Deposit Scheme: On Investment of ₹5 Lakhs, You Will Get Interest of Only ₹2.24 Lakhs
Current Interest Rate Trends – April 2025
Here’s a snapshot of PNB’s current FD rates (general public):
| Tenure | Interest Rate (p.a.) |
|---|---|
| 1 Year | 6.75% |
| 2 Years | 6.90% |
| 3 Years | 7.00% |
| 5+ Years | 6.50% |
PNB Bank Is Giving Good Returns FAQs
Q1. Is it safe to invest in PNB fixed deposits?
Yes, PNB is a government-owned bank, and deposits up to ₹5 lakh are insured under DICGC (Deposit Insurance and Credit Guarantee Corporation).
Q2. Can I open a PNB FD online?
Yes, if you have an active PNB savings account with NetBanking access, you can open an FD from your home in minutes.
Q3. Will I get the full interest if I withdraw early?
No, premature withdrawal attracts a 1% penalty and reduced interest rate. It’s better to keep the FD till maturity.
Q4. Can I get a loan against my FD?
Yes, you can avail a loan or overdraft facility up to 90% of the FD value in emergencies.
Q5. Is interest on PNB FD taxable?
Yes. Interest income is added to your total income and taxed as per your income tax slab. TDS applies if interest exceeds the annual threshold.
