Soon after Kotak Mahindra Bank raised fixed deposit interest rates, Punjab National Bank (PNB), too, raised its FD rates with effect from July 4, 2022.
“The revised interest rates will be applicable to fresh deposits and renewable of existing deposits with effect from 4.7.2022,” states the Punjab National Bank (PNB) on its website.
For one year, PNB will now offer 5.30 percent per annum. The rate of interest rises to 5.50 percent for FDs of tenure between 2 to 5 years. Above five years, the rate of interest will now be 5.60 percent.
However, the short-duration fixed deposits will fetch lower rate of interest to depositors.
The fixed deposits for shorter than 90 days will offer 3.25 percent. This increases to 4 percent for duration between 91 to 179 days. This further increases to 4.5 percent for duration between 180 days to up to one year.
|Fixed deposit tenure||Interest rates (%)|
|180 days to 1 year||4.5|
At the same time, senior citizens will be entitled to receive an additional rate of interest of 50 basis points over applicable card rates for all maturities on domestic deposits of lower than ₹2 crore.
However, the savings interest rates offered by PNB continue to remain the same i.e., 2.70 percent for funds below ₹10 lakh, and 2.75 percent above ₹10 lakh.
Ever since RBI raised repo rates by 90 basis points in two monetary policy review meets, several banks have raised their interest rates from time to time.
HDFC Bank raised its FD interest rates last month. Prior to that South Indian Bank in April raised its fixed deposit (FD) interest rates to up to 6 percent for long tenor. This was followed by Bajaj Finance raising its interest rates.
State Bank of India (SBI) also raised interest rates on long-term fixed deposits (FDs) with effect from February 15.