FD interest rates after RBI repo rate pause: Check Punjab & Sind Bank, PNB fixed deposit rates

The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% is likely to keep bank fixed deposit (FD) rates broadly stable for now. For investors looking for predictable returns, Punjab & Sind Bank and Punjab National Bank (PNB) currently offer FD rates of up to 6.85% and 6.60%, respectively, for selected tenures.

The RBI Monetary Policy Committee (MPC), headed by Governor Sanjay Malhotra, concluded its three-day meeting on August 5 after beginning deliberations on August 3. With no change in the repo rate, depositors may not see an immediate increase in FD rates, although individual banks can revise rates depending on their liquidity and deposit requirements.

Punjab & Sind Bank FD Rates

Punjab & Sind Bank offers FD interest rates ranging from 2.85% to 6.85% for regular customers across tenures from seven days to 10 years. Senior citizens can earn additional interest on eligible deposits of 180 days and above.

For the five-year tax-saving FD, Punjab & Sind Bank offers 5.95% to regular customers and 6.45% to senior citizens. The bank also offers NRE, NRO, RFC and FCNR (B) deposits for eligible non-resident customers.

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PNB FD Rates

Punjab National Bank offers FD rates between 3% and 6.60% for regular customers, depending on the tenure. Senior citizens can receive an additional interest rate on eligible deposits, while super senior citizens get a higher benefit on specified tenures.

PNB's five-year tax-saving FD offers rates ranging from 5.85% to 6.25% for general customers, depending on the applicable product terms, while senior citizens receive higher rates.

What FD investors should note

With the repo rate unchanged at 5.25%, borrowers and depositors are unlikely to see an immediate broad-based shift in interest rates. FD investors should therefore compare available tenures rather than waiting for an automatic increase in deposit rates.

Investors should also consider premature-withdrawal rules, taxation and the applicable senior-citizen benefit before booking an FD. Rates can change, so depositors should verify the latest rates with the respective bank before investing.

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