Saving regularly can feel challenging, but a recurring deposit (RD) simplifies the process. You commit to a small monthly amount and let it grow with fixed returns. Among public sector banks, Punjab National Bank (PNB) is widely trusted and has an extensive branch network, making it a dependable option for steady savers.
The current PNB RD interest rates for 2025 range from 6.00% to 6.50% per annum for tenures between 6 months and 10 years. Senior citizens earn an additional benefit of up to 0.80% as per the bank’s published card rates. These features make PNB a safe choice for anyone who wants predictable growth without exposure to market volatility.
Below you will find details on rates, features, eligibility, and the simple steps to open a PNB RD.
What is a PNB RD Scheme?
A PNB RD is a disciplined savings plan in which you deposit a fixed amount every month for a chosen period. At maturity, you receive the accumulated deposits plus interest. The scheme is intended for savers who prioritize safety and predictable returns rather than market-linked gains. The RD operates under PNB’s official terms and conditions, which define the rules, interest calculation and payout procedures.
PNB RD Interest Rates 2025
The table below outlines how different monthly deposits and tenures can produce a maturity value of ₹1 lakh under the PNB RD interest rates for 2025:
| Tenure | Monthly Deposit (₹) For ₹1 Lakh Maturity | Rate of Interest (%) | Maturity Value (₹) |
| 1 Year | 8,051 | 6.4 | 1,00,009 |
| 2 Years | 3,898 | 6.4 | 1,00,016 |
| 3 Years | 2,515 | 6.4 | 1,00,002 |
| 4 Years | 1,822 | 6.5 | 1,00,038 |
| 5 Years | 1,409 | 6.5 | 1,00,026 |
| 6 Years | 1,153 | 6.0 | 1,00,032 |
| 7 Years | 958 | 6.0 | 1,00,089 |
| 8 Years | 812 | 6.0 | 1,00,106 |
| 9 Years | 699 | 6.0 | 1,00,127 |
| 10 Years | 609 | 6.0 | 1,00,137 |
You can apply the same rates to calculate maturity values for larger targets such as ₹5 lakh or ₹10 lakh — the percentage rates remain the same while the final amount scales proportionally. Note that these are the bank’s card rates and are subject to change whenever PNB revises its interest schedule.
PNB RD Interest Rates for Senior Citizens
PNB provides enhanced RD rates for senior citizens to support retirement income. Individuals aged 60 to 80 receive an extra 0.50% on RD rates for tenures up to 5 years, and an extra 0.80% for longer tenures on deposits below ₹3 crore. Super senior citizens (over 80 years) receive an additional 0.80% across all maturity buckets. These increments make RDs at PNB more attractive for retirees seeking reliable returns.
Key Features of PNB RD
In addition to interest rates, these features affect how much you ultimately earn and how you manage your RD:
- Minimum deposit: ₹100 per month, in multiples of ₹1
- Maximum deposit: ₹25 lakh per customer per month
- Flexible tenure: From 6 months to 120 months, in multiples of 1 month
- Standing instruction: Auto-debit option available from your PNB account for convenient monthly payments
- Loan facility: You can borrow up to 90% of your RD balance if you require funds before maturity
- Premature withdrawal: Allowed with a penalty of 1% on the applicable PNB RD rate
- Payment due: The RD amount is disbursed at maturity or one month after the last instalment, whichever is later
- Delayed instalments: A penalty of ₹1 per ₹100 per month is charged for missed payments; the deposited amount continues to earn interest with half-yearly compounding
How to Apply for a PNB RD?
PNB RDs can be opened by individuals, minors, joint account holders, firms, companies and institutions. You can apply either online through net banking or by visiting a branch with standard KYC documents.
- Online: Use PNB’s net banking or mobile banking app to open an RD instantly and set up monthly debits.
- Branch: Visit a PNB branch, complete the RD application form and submit required KYC documents to the bank representative.
Tax Rules on PNB RD
Interest earned on a recurring deposit is taxable as income. Tax Deducted at Source (TDS) is applied if your total interest from bank deposits in a financial year exceeds the prescribed thresholds — typically ₹40,000 for regular taxpayers and ₹50,000 for senior citizens. If your total income is below the taxable limit, you can submit Form 15G or 15H to the bank to prevent TDS on RD interest, subject to eligibility and correct documentation.
PNB’s RD interest rates for regular savers offer steady growth, while additional senior citizen benefits make RDs an attractive option for retirees. Recurring deposits are a low-risk way to save toward future goals or to park surplus funds with predictability.
FAQs on PNB RD Interest Rates
How much interest will I get on a ₹1 lakh RD in PNB?
The interest you earn on a ₹1 lakh RD depends on the tenure. For tenures of 1–3 years, PNB’s RD rates are approximately 6.4% per annum. For 4–5 years, the rate is around 6.5%, and for 6–10 years it is about 6.0%. Senior and super senior citizens receive additional percentage points over these base rates.
Does PNB offer higher RD interest rates for senior citizens?
Yes. Senior citizens receive an extra 0.50% to 0.80% over regular RD rates depending on age and tenure. Super senior citizens are eligible for an additional 0.80% across all tenures.
How do I get tax benefits on PNB RD?
RD interest itself is taxable and does not qualify for special tax exemptions. However, if your total income is below the taxable threshold, you may submit Form 15G or 15H to avoid TDS on RD interest. Ensure your PAN and address proofs are up to date with the bank.