For the general public, the bank offers an interest rate of 7 per cent on FDs (callable) maturing in 600 days. Senior citizens or those who are aged 60 years and above will get a 7.5 per cent interest rate of callable fixed deposits of 600 days. Punjab National Bank offers a 7.80 per cent interest rate per annum on 600-days FD (callable) to super senior citizens or those who are aged 80 years and older.
For non-callable fixed deposits of 600 days, the general investors will get an interest of 7 per cent per annum, according to the bank’s website. Senior citizens are eligible to get an interest rate of 7.55 per cent per annum for a special PNB fixed deposit scheme of 600 days (non-callable FD). The public sector bank offers an interest rate of 7.85 per cent for super senior citizens on non-callable fixed deposits maturing in 600 days. Investors must note the premature withdrawal option is not available under non-callable FDs.
Commenting on this special offer, Atul Kumar Goel, MD & CEO, of Punjab National Bank, said, “Our aim is to offer the best-in-class schemes to our valuable customers, and we are pleased to offer a higher interest rate to consumers so that they earn more on their savings. For further ease, our existing customers can avail of this scheme online also through PNB ONE app and internet banking.”
Difference between callable and non-callable fixed deposits
A fixed deposit that allows the depositor to withdraw funds before the date of maturity, is known callable fixed deposit. However, banks generally charge a penalty for premature withdrawal from fixed depositors. Simply put, there is no lock-in period for callable fixed deposits.
In a non-callable fixed deposit, the investor is not allowed to prematurely withdraw money from the fixed deposit. So, depositors need to keep in mind that there is a lock-in period in non-callable fixed deposits.
Several banks have recently introduced special fixed deposit (FD) schemes for specific tenures. The lenders usually offer an attractive interest rate on these special FD schemes. These offers are usually available for a limited period. However, investors should not just go by the whopping interest rate on fixed deposits. The tenure that you are choosing must be based on your need, said an expert.
FD interest rate to increase further
“While the Reserve Bank of India (RBI) rates have been increased by almost 2 per cent, the increase in FD rates has not caught up completely with that. We can expect in the coming few months, the FD rates to increase further,” said Ankit Jain, Partner, Ved Jain & Associates.