When it comes to fixed deposits (FDs), choosing the right bank can make a significant difference in your earnings. In India, State Bank of India (SBI) and Punjab National Bank (PNB) are two of the largest public sector banks offering special 400-day fixed deposit schemes. But which one gives you the highest return? In this article, we will compare their interest rates, maturity amounts, and help you decide the best option for your investment.
SBI vs PNB Best 400-Day Fixed Deposit Returns
| Feature | SBI “Amrit Kalash” FD | PNB 400-Day FD |
|---|---|---|
| Interest Rate (General Citizens) | 7.10% | 7.30% |
| Interest Rate (Senior Citizens) | 7.60% | 7.75% |
| Interest Rate (Super Senior Citizens) | Not applicable | 8.05% |
| Investment Period | 400 Days | 400 Days |
| Minimum Deposit | ₹1,000 | ₹100 |
| Maximum Deposit | No upper limit | No upper limit |
| Scheme Validity | Up to March 31, 2025 | Available till further notice |
Both SBI and PNB offer attractive 400-day fixed deposit schemes, but PNB provides a slightly higher return of 7.30% compared to SBI’s 7.10%. If you are looking for higher returns, PNB is the better option, especially for senior and super senior citizens. However, if you prioritize a trusted banking experience, SBI remains a safe choice.
Why Choose a 400-Day FD?
A 400-day fixed deposit is a short-term investment that allows you to earn better interest than a regular savings account. It is ideal for individuals looking for safe and guaranteed returns. With inflation fluctuating, investing in a high-interest FD ensures your money grows steadily while keeping your principal secure.
see also: Certificate of Deposit vs Fixed Deposit?
SBI 400-Day FD: Amrit Kalash Scheme
Features of SBI’s Amrit Kalash FD:
- Interest Rate: 7.10% (General), 7.60% (Senior Citizens)
- Tenure: 400 days
- Eligibility: Open to all individuals, NRIs, and businesses
- Premature Withdrawal: Allowed with a penalty
- Auto-Renewal: Available
- Tax Deduction: TDS applicable as per IT rules
Returns Calculation
If you invest ₹5 lakh in SBI’s Amrit Kalash FD at 7.10% per annum, the maturity amount after 400 days would be approximately ₹5,78,767.
PNB 400-Day FD Scheme
Features of PNB’s 400-Day FD:
- Interest Rate: 7.30% (General), 7.75% (Senior Citizens), 8.05% (Super Senior Citizens)
- Tenure: 400 days
- Eligibility: Open to individuals and businesses
- Premature Withdrawal: Allowed with penalty
- Auto-Renewal: Available
- Tax Deduction: TDS applicable as per IT rules
Returns Calculation
If you invest ₹5 lakh in PNB’s 400-Day FD at 7.30% per annum, the maturity amount after 400 days would be approximately ₹5,81,678.
Comparing SBI vs PNB 400-Day FD Schemes
1. SBI vs PNB FD Interest Rates
PNB offers a higher interest rate of 7.30% compared to SBI’s 7.10%, making it a slightly better option for higher returns.
2. SBI vs PNB FD Senior Citizen Benefits
Senior citizens get a higher interest rate in both banks, but PNB gives 7.75% compared to SBI’s 7.60%. If you are 80 years or older, PNB offers 8.05%, which is the best among both banks.
3. Maturity Returns
For a ₹5 lakh deposit, PNB offers approximately ₹2,911 more than SBI at maturity.
₹30 Lakh Investment Opportunity: Senior Citizen Saving Scheme 2025 – Best Interest Rate at Post Office SCSS
4. Taxation & TDS Deduction
Both banks deduct TDS (Tax Deducted at Source) if the interest earned exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS deduction if your total income is below the taxable limit.
Who Should Choose SBI?
- If you already have an account with SBI and prefer hassle-free investments.
- If you are looking for stability and SBI’s vast branch network.
- If you need a government-backed investment with high credibility.
Who Should Choose PNB?
- If you are looking for higher interest rates and better returns.
- If you are a super senior citizen (80+) who qualifies for 8.05% interest.
- If you want a lower minimum deposit requirement (₹100 vs. SBI’s ₹1,000).
How to Open a 400-Day FD SBI vs PNB?
You can open an FD both online and offline in these simple steps:
1. Online Method (via Net Banking or Mobile App)
- Log in to SBI Net Banking (https://www.onlinesbi.sbi) or PNB Net Banking (https://www.netpnb.com).
- Navigate to the Fixed Deposit section.
- Select the 400-day tenure and enter the deposit amount.
- Confirm the interest rate and select the payout option.
- Authenticate with OTP and confirm the deposit.
2. Offline Method (Branch Visit)
- Visit the nearest SBI or PNB branch.
- Carry your Aadhaar card, PAN card, and a cheque/cash for deposit.
- Fill out the FD application form.
- Submit the documents and receive an FD receipt.
see also: How to Get a Tax-Free Income of 7 Lakhs Per Year from PPF
SBI vs PNB Best 400-Day Fixed Deposit Returns FAQs
1. Which bank gives the highest return on a 400-day FD?
PNB offers a higher interest rate of 7.30% for general citizens compared to SBI’s 7.10%, making PNB a better choice for higher returns.
2. Can I withdraw my FD before 400 days?
Yes, both SBI and PNB allow premature withdrawal, but a penalty of 0.50% to 1% on interest rate may apply.
3. What is the minimum deposit amount for opening a 400-day FD?
- SBI: ₹1,000
- PNB: ₹100
4. Are FD interest earnings taxable?
Yes, TDS is deducted if interest earnings exceed ₹40,000 per year (₹50,000 for senior citizens).
5. Can NRIs invest in the 400-day FD scheme?
Yes, both SBI and PNB allow NRIs to invest in their FD schemes.
