If you’re wondering how to grow your savings safely, a PNB Fixed Deposit (FD) could be the answer. Many Indians trust fixed deposits because they’re secure, predictable, and backed by the bank. In this guide, we’ll explain how investing ₹3 lakh in a PNB FD can earn you ₹69,432 in interest, and what you need to know to make the most of your investment.
Whether you’re planning for your child’s education, a future holiday, or simply want your idle money to work harder, this article will break down everything in simple, easy-to-follow steps. We’ll also explore how long you need to stay invested to earn ₹69,432, the best FD tenures, and how to use PNB’s current interest rates smartly.
PNB FD: Get FD of ₹3 Lakh for So Many Years
| Topic | Details |
|---|---|
| Investment Amount | ₹3,00,000 |
| Interest Earned | ₹69,432 |
| Approximate Tenure | 3 years at 7.00% p.a. (compounded quarterly) |
| Bank | Punjab National Bank (PNB) |
| Interest Rate Source | PNB Official Website |
| Risk Level | Low (bank-backed FD with DICGC insurance) |
| Best FD Option | 3-year term at 7.00% per annum |
| Suitable For | Retirees, salaried professionals, conservative investors |
A PNB FD of ₹3 lakh for 3 years at 7.00% interest can earn you ₹69,432, making it a safe and rewarding option for conservative investors. With zero market risk, guaranteed returns, and flexible tenures, it’s a smart financial move—whether you’re a working professional, senior citizen, or just starting your investment journey.
Remember to compare FD rates periodically, avoid breaking your FD early, and consider tax-saving options if needed. If you’re looking for guaranteed growth with peace of mind, this PNB FD strategy fits the bill perfectly.
What is a Fixed Deposit (FD) and Why Choose PNB?
A Fixed Deposit is a savings tool where you lock in a lump sum for a fixed tenure, and the bank pays you interest at a fixed rate. You can’t withdraw the money before maturity without a penalty—but the reward is higher interest than a regular savings account.
Punjab National Bank (PNB), one of India’s oldest and most trusted public sector banks, offers competitive FD rates, especially for tenures between 2 and 3 years. Plus, PNB deposits are insured up to ₹5 lakh under the DICGC scheme, giving your money an extra layer of security.
see also: SBI Account Holders Please Note, 5 Big Rules Have Changed
How to Earn ₹69,432 from a ₹3 Lakh PNB FD
Let’s say you want to invest ₹3,00,000 and earn ₹69,432 in interest. Here’s a breakdown of how it works:
Option: PNB FD for 3 Years at 7.00% (Compounded Quarterly)
PNB’s current FD interest rates (as of March 2025) for deposits below ₹2 crore include:
- 7.00% per annum for 2 years to 3 years
- 6.50% per annum for 3 to 5 years
- 7.25% per annum for 400 days
To earn ₹69,432 in interest, we can use the compound interest formula:
A = P (1 + r/n) ^ (nt)
Where:
- A = Maturity Amount
- P = ₹3,00,000
- r = 7.00% annual interest = 0.07
- n = 4 (quarterly compounding)
- t = 3 years
Calculation:
A = 3,00,000 × (1 + 0.07/4) ^ (4×3)
A ≈ ₹3,00,000 × 1.2314 = ₹3,69,432
Interest earned = ₹3,69,432 – ₹3,00,000 = ₹69,432
So, to earn ₹69,432 in interest, you need to invest ₹3 lakh in a 3-year PNB FD at 7.00% interest.
PNB FD Interest Rates 2025 (Below ₹2 Crore)
| Tenure | Interest Rate (General) | Senior Citizen Rate |
|---|---|---|
| 7–14 days | 3.50% | 4.00% |
| 400 days | 7.25% | 7.75% |
| 2 years to 3 years | 7.00% | 7.50% |
| 3 years to 5 years | 6.50% | 7.00% |
| 5 to 10 years | 6.50% | 7.00% |
Who Should Consider This PNB FD Option?
This FD plan is ideal for:
- Salaried individuals seeking steady returns
- Senior citizens who want income security
- Parents saving for future expenses
- Retirees looking for a low-risk income option
- Small business owners with surplus funds
How to Open a PNB Fixed Deposit
You can open a PNB FD both online and offline:
Online via PNB Internet Banking or Mobile App
- Login to PNB Internet Banking
- Go to “Term Deposits” and select “Open Fixed Deposit”
- Choose amount (₹3,00,000), tenure (3 years), and interest payout option
- Confirm and submit
Offline at Your Nearest Branch
- Visit a PNB branch with ID proof, address proof, and passport-sized photos
- Fill out the FD opening form
- Submit documents and deposit the money
- Collect the FD receipt or confirmation
Smart Tips to Maximize Your PNB FD Returns
- Choose Quarterly Compounding – It offers better returns than simple annual interest.
- Consider Laddering – Split ₹3 lakh into 3 FDs with different tenures (e.g., 1, 2, 3 years).
- Senior Citizens – Opt for the 0.50% higher interest rate available to those 60+.
- Avoid Premature Withdrawal – It reduces your interest earnings.
- Reinvest Interest – Use maturity proceeds to open another FD and compound your growth.
see also: Bank of Baroda Home Loan 2025: Application Process
PNB FD Interest FAQs
Q. Is the PNB FD safe?
Yes. PNB is a government-owned bank. Your FD is insured up to ₹5 lakh by DICGC, a subsidiary of RBI.
Q. Can I withdraw the FD before 3 years?
Yes, but premature withdrawal may lead to lower interest and a penalty. Avoid it unless urgent.
Q. Is TDS deducted on FD interest?
Yes, TDS at 10% is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if eligible.
Q. How often is interest paid?
You can choose:
- Cumulative (interest reinvested and paid on maturity)
- Non-cumulative (monthly/quarterly payouts)
Q. Can I open this FD online?
Yes. PNB allows FD booking through net banking and mobile app with just a few clicks.
