In a move aligned with recent monetary policy changes, Punjab National Bank (PNB) and Bandhan Bank have revised their fixed deposit (FD) interest rates for deposits below ₹3 crore. The rate cuts, effective May 1, 2025, come shortly after similar adjustments in April, signaling a broader shift in market trends.
PNB Slashes FD Rates Across Key Tenures
Punjab National Bank has reduced interest rates by up to 25 basis points (bps) on select short- and medium-term fixed deposits. Post-revision, general citizens will now earn between 3.50% and 7.10% depending on the tenure, which ranges from 7 days to 10 years. The peak return of 7.10% is currently available for the 390-day FD option.
PNB is continuing its commitment to senior customers with preferential rates. Senior citizens (aged 60–80) will receive an extra 50 bps on FDs up to 5 years, and 80 bps on longer terms, bringing their effective rate up to 7.60%. Meanwhile, super senior citizens (80 years and above) benefit from an additional 80 bps on all maturities, with top rates reaching 7.90%.
Bandhan Bank Follows Suit Amid Changing Market Trends
Bandhan Bank has also joined the list of banks adjusting deposit rates. Effective May 1, 2025, interest rates for retail FDs under ₹3 crore now range from 3.00% to 7.75% for general customers. The highest rate applies to the 1-year deposit scheme.
Senior citizens at Bandhan Bank are offered between 3.75% and 8.25%, with the maximum again centered around the 1-year tenure. This mirrors a market-wide trend of rewarding shorter lock-in periods with relatively higher returns amid expectations of further policy easing.
RBI Policy Impact and Forward Outlook
The Reserve Bank of India (RBI) recently reduced the key repo rate by 25 bps to 6.00%, marking the second consecutive cut. With the central bank shifting its stance from ‘neutral’ to ‘accommodative,’ additional rate reductions are anticipated in upcoming policy reviews. This move is intended to boost economic momentum while moderating inflation pressures.
That said, the ongoing decline in fixed deposit returns could prompt savers to explore alternative investment options, such as debt mutual funds or government-backed schemes. However, for risk-averse individuals, especially seniors, FDs still offer stable and predictable returns.
For the most accurate and updated FD rates, customers can visit the official websites of Punjab National Bank and Bandhan Bank.
As the interest rate cycle shifts, monitoring banking trends, repo rate movements, and fixed deposit strategies becomes essential for smart financial planning.