If you’re planning to invest in a Punjab National Bank (PNB) Fixed Deposit, you might be wondering what kind of returns you can expect. One of the most common questions investors ask is: “If I deposit ₹2,00,000 in a 12-month FD, how much money will I get on maturity?” Let’s break it down in a simple, clear, and professional way so that whether you’re a beginner or a finance-savvy reader, you can understand the full picture.
PNB offers competitive FD interest rates for different tenures, making it a solid choice for low-risk, fixed-return investments. As of March 2025, the bank offers an interest rate of 6.80% per annum for 12-month FDs for regular customers. For senior citizens, the interest rate is slightly higher at 7.30% per annum.
PNB Fixed Deposit Interest Rate for ₹2,00,000
| Feature | Details |
|---|---|
| Bank | Punjab National Bank (PNB) |
| FD Amount | ₹2,00,000 |
| Tenure | 12 months (1 year) |
| Interest Rate (Regular) | 6.80% p.a. |
| Interest Rate (Senior Citizens) | 7.30% p.a. |
| Maturity Amount (Regular) | ₹2,13,978 (approx.) |
| Maturity Amount (Senior Citizen) | ₹2,14,938 (approx.) |
| Interest Earned | ₹13,978 to ₹14,938 |
| Compounding | Quarterly |
| Official Link | PNB FD Rates |
Investing ₹2,00,000 in a 12-month PNB Fixed Deposit can yield ₹13,978 to ₹14,938, depending on your age and interest payout choice. With safety, assured returns, and flexible options, PNB FDs are an excellent choice for conservative investors.
Understanding PNB Fixed Deposit
A Fixed Deposit (FD) is a financial instrument offered by banks where you deposit a lump sum for a fixed period at a fixed interest rate. It is a safe and secure way to grow your savings. You earn interest either at regular intervals or at the end of the maturity period, depending on the type of FD you choose.
For this article, we’re considering a cumulative FD, where interest is compounded quarterly and paid at the time of maturity.
see also: SBI’s Highest Interest Paying FD Scheme 2025
Invest ₹2,00,000 in a 12-Month PNB Fixed Deposit?
For General Public:
- Interest Rate: 6.80% p.a.
- Compounding: Quarterly
Formula used:
Maturity = P × (1 + r/n)^(n×t)
Where:
- P = Principal (₹2,00,000)
- r = Annual interest rate (6.80% or 0.068)
- n = Compounding frequency (4 times a year)
- t = Tenure in years (1)
Calculation:
Maturity = 200000 × (1 + 0.068/4)^4
= 200000 × (1.017)^4
= 200000 × 1.069889
= ₹2,13,978 (approx.)
For Senior Citizens:
- Interest Rate: 7.30% p.a.
Calculation:
Maturity = 200000 × (1 + 0.073/4)^4
= 200000 × (1.01825)^4
= 200000 × 1.074692
= ₹2,14,938 (approx.)
So, based on your age and deposit option, you will earn between ₹13,978 and ₹14,938 over one year on a ₹2 lakh investment in a PNB FD.
What If You Want Monthly or Quarterly Payouts Instead?
In case you don’t want to wait a year to get your interest, PNB also offers non-cumulative FDs, where interest is paid monthly or quarterly.
For example:
- If you choose quarterly payouts, you will receive interest every 3 months.
- With 6.80% p.a., each quarter, your interest will be: ₹200,000 × (6.80%/4) = ₹3,400 per quarter
- Over a year, this adds up to ₹13,600 (slightly less than compound interest due to no reinvestment).
Should You Opt for Cumulative or Non-Cumulative FD?
| Preference | Best FD Type | Why? |
|---|---|---|
| Want regular income | Non-Cumulative | Monthly/Quarterly payouts |
| Want to maximize returns | Cumulative | Compound interest grows faster |
| Retired individual | Non-Cumulative | Useful for regular expenses |
| Younger investor | Cumulative | Reinvesting yields more |
Important Notes Before You Invest
- TDS Applicable: If your interest income exceeds ₹40,000 in a year (₹50,000 for senior citizens), Tax Deducted at Source (TDS) is applicable.
- PAN Submission: Submit your PAN card to avoid higher TDS deductions.
- Premature Withdrawal: Allowed but with a penalty of 1% on applicable rate.
- Auto-Renewal Option: Can be enabled to reinvest upon maturity.
How to Open a PNB Fixed Deposit Account
You can open a PNB FD both online and offline.
Online Method:
- Visit PNB Net Banking
- Log in with your credentials.
- Navigate to ‘Deposit Schemes’ > ‘Open Fixed Deposit’
- Enter the amount (₹2,00,000), select tenure (12 months), and choose interest payout.
- Confirm and submit.
Offline Method:
- Visit your nearest PNB branch.
- Fill out the FD application form.
- Provide your PAN and address proof.
- Deposit the amount via cash, cheque, or transfer.
- Collect the FD receipt.
see also: Are You Investing Money in FD?
PNB Fixed Deposit Interest Rate FAQs
1. What is the minimum amount required to open a PNB FD?
The minimum amount is generally ₹100, but for higher interest and returns, larger deposits like ₹1 lakh or ₹2 lakh are preferred.
2. Can I withdraw my FD before 12 months?
Yes, but a 1% penalty will be levied on the interest rate applicable.
3. Is PNB Fixed Deposit safe?
Yes, PNB is a government-owned bank. Additionally, deposits up to ₹5 lakh are insured under DICGC, ensuring safety.
4. Do senior citizens need to submit proof for higher interest rates?
Yes, proof of age (such as Aadhaar, PAN, or Voter ID) must be submitted.
5. How is TDS calculated on PNB Fixed Deposit interest?
If your interest exceeds the exemption limit, TDS at 10% is deducted (20% if PAN is not submitted).
