PNB offers extra 0.80% FD interest rate for these senior citizens on all tenures

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Punjab National Bank (PNB) is offering an extra 80 basis points or 0.80% on bank fixed deposits (FDs) for a section of senior citizens. The higher interest rate is available to super senior citizens i.e., those above the age of 80 years or more. The extra interest rate is available on all tenures of bank fixed deposits starting from 7 days to 10 years. As per the bank’s website, “Super Senior Citizens of age above 80 years shall get additional rate of interest of 80 bps over applicable card rate across all maturity buckets.”

Banks typically offer an additional 0.50% to senior citizens (60 years and above) over and above what is offered to the general public. However, no other bank is currently offering a higher interest rate for super senior citizens on all FD tenures.

Current FD interest rates for super senior citizens
The interest rate offered on FD to super senior citizens is effective from September 13, 2022. The bank is offering fixed deposits starting from 7 days for a maximum of up to 10 years.

PNB super senior citizens FD interest rate

TenureInterest rate (%) for senior citizensInterest rate for super senior citizens(%)
7 to 14 days3.503.80
15 to 29 days3.503.80
30 to 45 days3.503.80
46 to 90 days3.754.05
91 to 179 days4.504.80
180 to 270 days5.005.30
271 days to less than 1 year5.005.30
One year6.006.30
More than 1 year to 404 days6.006.30
405 days6.606.90
406 days to 2 years6.006.30
More than 2 years up to 3 years6.106.40
More than 3 years up to 5 years6.256.55
More than 5 years up to 10 years6.156.45
1111 days6.256.55

Source: PNB Website

Special FD schemes for senior citizens
It is important to note that many banks during the start of the pandemic introduced special fixed deposits for senior citizens where a higher interest rate was offered on certain tenures (5 years and above). Under such schemes, banks typically offered 0.30% higher than the interest rate offered to senior citizens (60 years and above) if they booked FD for 5 years or more.

Further, if this special FD was prematurely withdrawn before maturity then the extra interest rate was not available.

Examples of such schemes are SBI WeCare Senior Citizens FD and HDFC Bank special FD for senior citizens etc. SBI WeCare FD offers an additional premium of 30 bps (over and above the existing premium of 50 bps) over card rate for the public.

Similarly, HDFC Bank offers an additional premium of 0.25% (over and above the existing premium of 0.50%) to senior citizens who wish to book FDs for a tenure of 5 years 1 day to 10 years.

PNB premature FD withdrawal facility
Do note that the premature withdrawal facility is available on the FD interest rate mentioned in the above table. If a super senior citizen wishes to withdraw money before the FD maturity date, then she can do so by visiting the bank branch. Penal interest will be levied if a super senior citizen withdraws a fixed deposit prematurely.

As per the PNB website, “1% penal interest shall be charged at the time of premature cancellation/part withdrawal of domestic term deposits for all tenors and interest rate payable would be contractual rate minus 1% or the rate under the scheme on the contractual date applicable for the tenor for which the deposit has actually run minus 1%, whichever is lower.”

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