PNB FD Interest Rates & Safety (February 2026)

As of February 2026, Punjab National Bank fixed deposit rates range between 3.00% and 6.40% per year for regular customers and up to 6.90% for senior citizens. Unlike many private banks, the highest return is usually not at 5 years. It appears around the 390-day tenure. So many depositors now choose short-cycle FD planning instead of long locking.

Important Safety Rule: Bank deposits in India are insured only up to ₹5 lakh per person per bank (principal + interest). If someone deposits ₹10 lakh in one bank, legally, only ₹5 lakh remains protected in a rare failure situation. You can verify at the RBI portal.

Because of this, planning matters. Before investing, understanding the Fixed Deposit basics helps: Understand Fixed Deposit Meaning

What the PNB FD Calculator Actually Does

The tool uses the same compounding method banks use. Interest is not added once a year — it is added every quarter (every 3 months). After each quarter, new interest starts earning interest again.

• Instant Maturity Calculation – You enter the amount, age and tenure — the calculator instantly shows maturity value and monthly income estimate.
• Correct Bank Formula – PNB FDs use quarterly compounding. Interest is added every 3 months, not yearly like many people think.
• Tax & TDS Awareness – If interest crosses ₹40,000 (₹50,000 seniors), the bank may deduct TDS automatically.
• Tenure Comparison – You can compare 1-year vs 390-day vs 2-year maturity before investing.

Example: ₹50,000 deposited for 390 days does not just earn interest once. Every 3 months the interest gets added and next quarter, the interest also earns on previous interest. That is why maturity is higher than simple interest calculation.

This is the reason two FDs with similar rates can still produce different maturity values. A small percentage change looks small on paper, but compounding multiplies the effect.

Top 10 Real-Life Steps to Use the PNB FD Calculator Correctly

1. Enter real investment amount like ₹10,000, ₹50,000 or ₹1 Lakh.
2. Choose the correct age category — senior citizens get higher interest.
3. Test 390-day tenure first because it often gives maximum return.
4. Compare cumulative vs monthly payout option.
5. Check maturity before visiting bank branch.
6. Split deposits above ₹5 lakh for safety.
7. Observe TDS alert shown in calculator.
8. Use ladder strategy instead of one long FD.
9. Compare 1-year, 390-day and 2-year options.
10. Finally confirm rate with bank because banks revise rates.

How the Calculator Works (Simple Example) – ₹1 Lakh invested for 390 days at 6.40% grows more than a 1-year FD at 6.10%. Small difference in rate looks minor, but maturity difference becomes noticeable. That is why a calculator matters — human mind sees 0.30% small, but money impact is real.

Tip: Most investors select 5-year FD emotionally (“safe long term”), but mathematically shorter optimized tenure often gives better flexibility.

Top 10 Benefits, Factors & Features of the PNB FD Calculator

1. Exact maturity before investing – You see the final amount first, not after opening FD. No guessing at the bank counter.
2. Compare tenures instantly – You can check 1-year, 390-day and 2-year returns in 20 seconds. This is what most investors never do.
3. Avoid manual mistakes – Manual compound interest calculation is confusing. Calculator removes calculation errors.
4. Senior citizen adjustment – Just selecting age category instantly shows higher return for retirees.
5. Real bank slab matching – PNB rates change based on exact number of days, not only years. Tool matches those slabs.
6. Monthly income preview – Retired users can check how much pension-type income FD can generate every month.
7. Goal planning – Want ₹2 Lakh after 2 years? You can reverse plan the deposit amount using the tool.
8. Flexible inputs – You can test ₹10,000, ₹50,000 or ₹10 Lakh — unlimited times, no restriction.
9. Rate awareness – Many investors don’t know banks have special tenures like 155 days or 1204 days. The calculator shows them.
10. Free and anytime use – You can use it at home, shop, or branch before filling the FD form.

When You Should Use This Calculator

You should check the calculator in these real situations:

• Before visiting the bank branch
• Before renewing an old FD
• After receiving the maturity payment
• Before putting retirement money
• When interest rates change

Easemoney Tip: Never renew FD blindly. Banks often auto-renew at a lower rate. First, calculate again, then decide the new tenure.

PNB FD Interest Rates (Below ₹3 Crore)

Effective from 1 February 2026, Punjab National Bank offers the following fixed deposit rates for Domestic / NRO deposits. The calculator above uses the same slab system to estimate maturity value.

Tenure	Public	Senior Citizen	Super Senior
7 – 14 Days	3.00%	3.50%	3.80%
15 – 45 Days	3.00%	3.50%	3.80%
46 – 90 Days	4.50%	5.00%	5.30%
91 – 154 Days	4.90%	5.40%	5.70%
155 Days	5.55%	6.05%	6.35%
156 – 179 Days	4.90%	5.40%	5.70%
180 – 270 Days	5.60%	6.10%	6.40%
271 – 302 Days	5.60%	6.10%	6.40%
303 Days	5.55%	6.05%	6.35%
304 Days – < 1 Year	5.60%	6.10%	6.40%
1 Year	6.10%	6.60%	6.90%
>1 Year – 389 Days	6.30%	6.80%	7.10%
390 Days	6.40%	6.90%	7.20%
391 Days – 2 Years	6.30%	6.80%	7.10%
2 – 3 Years	6.30%	6.80%	7.10%
3 Years – 1203 Days	6.10%	6.60%	6.90%
1204 Days	6.05%	6.55%	6.85%
1205 Days – 5 Years	6.10%	6.60%	6.90%
5 – 10 Years	6.00%	6.80%	6.80%

Note: This calculator supports these official slabs and will be updated whenever PNB revises interest rates. You may bookmark this page for quick access, or verify the latest rates directly from the bank here: Check Latest Official PNB FD Rates

PNB FD Tax – Real Life Explanation (Salary ₹12 Lakh Example)

Fixed Deposit interest is not tax-free income. The government treats FD interest as “Income from Other Sources”. That means whatever interest you earn from PNB gets added to your salary income. So the bank does not decide your tax, your income slab decides your tax.

• Simple rule: Salary + FD Interest = Total Income → tax calculated on that total.

Example: You earn ₹12 Lakh per year

Suppose:

• Salary = ₹12,00,000 per year
• You invest ₹5 Lakh in PNB FD
• FD interest earned in a year ≈ ₹32,000

₹12,00,000 + ₹32,000 = ₹12,32,000 total income

Now tax will be calculated on ₹12.32 lakh, not only on salary. So FD does not have a separate tax. It behaves like extra salary income.

New Tax Regime vs Old Tax Regime

• Under the current new tax regime (default system), many salaried individuals around ₹12 lakh income may effectively pay very little or even zero tax after rebate and standard deduction.
• But in the old regime, the same income usually fell into the 30% tax bracket for the portion above ₹10 lakh. In that case, FD interest becomes taxable at that higher rate.
• So the same FD can feel “tax-free” for one person but “taxable” for another — it depends on the regime you choose.

When Bank Deducts TDS

PNB may deduct tax (TDS) if total interest from all FDs in the financial year crosses:

• ₹50,000 – regular customers
• ₹1,00,000 – senior citizens

If your total income is below taxable limit, you can submit Form 15G/15H in the bank to avoid deduction.

How the PNB FD Calculator Helps in Tax Planning

Most people open FD first and think about tax later. Better approach is the opposite — calculate first, then invest.

Easemoney Practical Use:

• You can see yearly interest before investing
• You can know whether you may cross ₹50,000 interest level
• You can decide to split ₹5 lakh into two FDs across different dates
• You can choose monthly payout instead of cumulative if required

This is why the calculator matters — it is not only a return calculator, it is actually a planning tool.

Easemoney Tip

• Never put entire savings into one single FD.
• ₹6 Lakh → 3 FDs of ₹2 Lakh
• Now interest is distributed across maturity years. You get flexibility and better tax control.
• People usually focus only on interest rate. But smart investors focus on timing, splitting and maturity planning.

What Formula the PNB FD Calculator Uses

The calculator is not guessing numbers. It follows the same compound interest method used by banks. Punjab National Bank calculates most cumulative fixed deposits using quarterly compounding (interest added every 3 months).

Maturity Amount = P × (1 + R/4)^{(4 × T)}

Where:

• P = Deposit Amount
• R = Annual Interest Rate
• T = Time in years
• 4 = Compounding happens 4 times a year (every quarter)

Simple Example (You can verify manually)

• Let’s say:
  • Deposit = ₹50,000
  • Interest Rate = 6.40%
  • Tenure = 390 days (≈ 1.068 years)
• Step:
  • R = 6.40 ÷ 100 = 0.064
• Now apply:
  • M = 50,000 × (1 + 0.064/4)^{(4 × 1.068)}
  • You will get maturity approximately close to what the calculator shows.

Yes — you can literally check this using a calculator, notebook or even a mobile calculator app. The online tool only automates this math so you don’t have to do long calculations manually.

FAQs