SBI vs PNB FD Rates: Lump sum deposits of Rs 5 lakh give these returns in 1 year now; see details examples with calculations
Compare PNB and State Bank of India's 1-year FD interest rates for both general and senior citizens on a Rs 5 lakh investment. Understand which bank offers better returns based on your requirements.
General Citizen FD Interest Rates
What is an FD?
Fixed deposits allow individuals to deposit a lump sum amount, locking it in for a fixed tenure with assured returns at the end.
Tenure Range
FDs can have tenures ranging from 7 days to 10 years.
Factors Influencing Rates
The interest rates depend on the bank and the tenure selected, with 1-year tenures being popular for short-term investments.
How FD Interest is Calculated
The interest on an FD is calculated based on the amount deposited, the bank’s interest rate, and the tenure selected. On maturity, the principal and the accumulated interest are returned to the depositor.
Senior Citizen FD Interest Rates
Higher Interest Rates for Senior Citizens
Senior citizens enjoy slightly higher interest rates on FDs, making it a preferred investment for retirees seeking guaranteed returns.
State Bank of India FD: For General Citizens
For General Citizens
Interest Rate: 6.8% for 1 year
Investment Amount: Rs 5,00,000
Estimated Interest: Rs 2,00,469
Total Maturity Amount: Rs 7,00,469
State Bank of India FD: For Senior Citizens
For Senior Citizens
Interest Rate: 7.3% for 1 year
Investment Amount: Rs 5,00,000
Estimated Interest: Rs 2,17,891
Total Maturity Amount: Rs 7,17,891
PNB FD: For General Citizens
For General Citizens
- Interest Rate: 6.8% for 1 year
- Investment Amount: Rs 5,00,000
- Estimated Interest: Rs 32,252
- Total Maturity Amount: Rs 5,32,252
PNB FD: For Senior Citizens
For Senior Citizens
- Interest Rate: 7.3% for 1 year
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Investment Amount: Rs 5,00,000
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Estimated Interest: Rs 37,511
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Total Maturity Amount: Rs 5,37,511
PNB vs SBI FD Comparison
- SBI offers slightly lower interest rates for general citizens compared to PNB, but for senior citizens, the rates are quite competitive.
- PNB offers higher returns for senior citizens, making it a better choice for retirees.
Taxation on Fixed Deposits
Interest earned on fixed deposits is taxable. If the interest income exceeds Rs 40,000 (Rs 50,000 for senior citizens) in a financial year, banks deduct TDS (Tax Deducted at Source).
Premature Withdrawal of Fixed Deposits
Most banks allow premature withdrawal of FDs, but a penalty is imposed in the form of reduced interest rates. It’s essential to check the bank's terms before opting for early withdrawal.