If you’re searching for a safe investment option with guaranteed returns, then the PNB FD Scheme might be exactly what you need. Punjab National Bank (PNB), one of India’s leading public sector banks, has rolled out a fixed deposit (FD) offer that’s turning heads—offering a return of ₹50,000 on a ₹2 lakh investment. This scheme is proving to be a smart choice for both new and seasoned investors who prefer stability and assured income.
With interest rates climbing across the banking sector, this is a golden opportunity for those seeking risk-free growth on their money. But how exactly does it work? What are the terms? And is it suitable for you or your family? Let’s break it down in simple terms and show you how you can benefit.
PNB FD Scheme
| Feature | Details |
|---|---|
| Bank | Punjab National Bank (PNB) |
| Scheme | Fixed Deposit (FD) |
| Investment Amount | ₹2,00,000 |
| Profit / Return | ₹50,000 |
| Estimated Tenure | 3 years 7 months (approx.) |
| Interest Rate | Up to 7.25% p.a. (as of April 2025) |
| Compounding Type | Quarterly / Half-Yearly |
| Senior Citizen Benefit | Additional 0.50% p.a. |
| Risk Level | Low (Capital Protected) |
The PNB FD Scheme offering ₹50,000 profit on ₹2 lakh investment is a fantastic choice for anyone who prefers stability, safety, and assured returns. With interest rates peaking, this is the perfect time to lock in your funds and grow your money securely.
What Is a Fixed Deposit and Why Is It Popular?
A Fixed Deposit (FD) is a type of investment where you deposit a lump sum of money with a bank for a fixed period at a predetermined interest rate. At the end of the term, you receive your principal amount plus the interest earned.
It’s one of the most popular investment instruments in India, especially for those who:
- Don’t want to risk their money in the stock market
- Need guaranteed returns
- Are saving for future goals like education, marriage, or retirement
PNB’s latest offering is an attractive FD plan where a ₹2 lakh investment can grow to ₹2.5 lakhs, depending on the tenure and compounding frequency.
see also: Guaranteed Interest of Rs 49,943 on FD of Rs 2 Lakh in Punjab National Bank
PNB FD Scheme Breakdown: How ₹2 Lakhs Becomes ₹2.5 Lakhs
Let’s explain with an easy-to-understand example:
Scenario
- Investment: ₹2,00,000
- Interest Rate: 7.25% per annum (compounded quarterly)
- Tenure: 3 years 7 months (~3.58 years)
Simple Calculation
Using the compound interest formula:
A = P × (1 + r/n)^(nt)
Where:
- A = final amount
- P = principal (₹2,00,000)
- r = annual interest rate (7.25% or 0.0725)
- n = number of times interest is compounded per year (quarterly = 4)
- t = time in years (3.58)
Final amount ≈ ₹2,50,000
Profit = ₹2,50,000 – ₹2,00,000 = ₹50,000
This is a simplified estimate. Actual earnings may vary slightly based on compounding frequency and tax deduction at source (TDS).
Who Should Consider This Scheme?
This PNB FD offer is best suited for:
- Senior Citizens looking for fixed income
- Young professionals aiming to park idle funds
- Parents saving for children’s future
- Retirees seeking safe returns
- Risk-averse investors who prefer guaranteed profits over market-linked returns
Bonus: Senior citizens get an extra 0.50% interest, which can take your returns even higher!
How to Open a PNB FD and Start Earning
Step 1: Choose Your Tenure
Visit PNB’s interest rate page and select the FD term offering the highest interest. Currently, 400 days is the most rewarding for general citizens.
Step 2: Select the Investment Amount
Start with a minimum deposit of ₹1,000. For higher profits like ₹50,000, invest ₹2,00,000 or more.
Step 3: Visit a Branch or Apply Online
- Log in to PNB NetBanking or Mobile Banking
- Or walk into the nearest branch with your:
- PAN card
- Aadhaar card
- Passport-size photo
- Bank account details
Step 4: Choose Compounding Option
Pick between:
- Quarterly
- Half-Yearly
- Yearly Interest payout or Reinvestment
Step 5: Receive Your Receipt and Relax
Once booked, you’ll get an FD receipt showing maturity date and interest details.
Latest PNB FD Interest Rates – April 2025
| Tenure | General Rate | Senior Citizen Rate |
|---|---|---|
| 7-14 days | 3.50% | 4.00% |
| 15-29 days | 3.75% | 4.25% |
| 30-90 days | 4.25% | 4.75% |
| 91-179 days | 4.50% | 5.00% |
| 180-270 days | 5.50% | 6.00% |
| 271-364 days | 6.00% | 6.50% |
| 400 days | 7.25% | 7.75% |
| 2-3 years | 6.75% | 7.25% |
| 5-10 years | 6.50% | 7.00% |
Taxation on FD Interest
Before you calculate your profits, remember:
- Interest earned above ₹40,000/year (₹50,000 for seniors) is subject to TDS @ 10%
- Submit Form 15G/15H if your income is below the taxable limit
- FD interest is added to your total income and taxed as per your slab
Pro Tip: Split FDs across banks or family members to reduce tax burden.
see also: If You Make an FD of ₹4 Lakh in SBI Bank, You Will Get a Return of ₹5,52,168
PNB FD Scheme FAQs
Q1. Is it safe to invest in PNB FD?
Yes, PNB is a government-owned bank and your FD is insured up to ₹5 lakh under DICGC insurance.
Q2. Can I withdraw the FD before maturity?
Yes, but premature withdrawal may result in a penalty of 0.50% to 1% on interest.
Q3. Can NRIs invest in this scheme?
Yes, through NRO Fixed Deposits. Interest rates may differ slightly.
Q4. Is the ₹50,000 profit guaranteed?
The profit is based on prevailing interest rates. As long as the rate remains around 7.25% and you invest for 3.5+ years, the return is very close to ₹50,000.
Q5. How frequently is interest compounded?
Usually quarterly, unless you opt for monthly or annual payout.
