FD Update: Shock for FD investors! These two big banks changed the interest rate..

Canara Bank and Punjab National Bank (PNB) have revised their FD interest rates on retail fixed deposits of less than Rs 3 crore, effective June 1, 2025. While both banks have revised rates multiple times, PNB has also hiked select long-term deposit rates.

Canara Bank's new FD interest rates

Canara Bank offers interest between 4% and 7% on refundable and eligible fixed deposits for general customers. For senior citizens, it offers interest between 4% and 7.50%. These rates have become effective from June 1, 2025. For a one-year tenure, Canara Bank has cut the FD interest rate by 10 basis points (bps), from 6.85% to 6.75%. For tenures of 3 years and above but less than 5 years, the rate has been cut by 25 basis points, from 7% to 6.75%.

PNB New FD Interest Rates

After the change, Punjab National Bank offers interest rates on fixed deposits between 3.50% and 6.90% for general citizens for tenures ranging from 7 days to 10 years. The highest interest rate of 6.9% is offered for tenures of 390 days. Earlier, the highest interest rate of 7% was offered for tenures of 390 days. Along with this, for senior citizens, the bank offers interest rates ranging from 4.00% to 7.40%. For super senior citizens, the rates are slightly higher ranging from 4.30% to 7.70% after the change.

Interest rate cut
For FDs of more than 1 year to 389 days, Punjab National Bank (PNB) has cut the FD interest rate by 10 basis points (bps). For tenures of 391 days to 505 days, the interest rate has been reduced from 6.80% to 6.70%, while for tenures of 506 days, the interest rate is now reduced from 6.70% to 6.60%. For tenures of 507 days to 2 years, the interest rate has been reduced from 6.80% to 6.70%. Also, for tenures of 2 years to 3 years, the interest rate has been reduced by 5 bps from 6.75% to 6.70%.

For a tenure of up to 1204 days, Punjab National Bank (PNB) has increased the FD interest rate by 25 basis points (bps), from 6.15% to 6.40%. For tenures of 1205 days to 5 years, the interest rate has been increased from 6.25% to 6.50%, which also represents a hike of 25 bps.

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