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From Union Bank of India To PNB: Top 3 PSUs Hikes Fixed Deposit (FD) Rates In The 1st Week of 2025
In light of restricted yields, tax bottlenecks, inflation and penalty rates, fixed deposits are becoming less and less attractive among passive income investors in India. The top three public sector banks in India, however, increased their interest rates on fixed deposits of less than Rs 3 Cr in the first week of 2025 in an effort to counteract this claim and draw in investors. Here are the revised FD rates of PSU banks effective 1st January 2025.
Union Bank of India
On January 1, 2025, Union Bank of India increased the interest rates on fixed deposits under Rs 3 Cr. As a result of the modification, the bank is now offering interest rates of 3.50% for 7-45 days and 4.50% for 46-90 days tenure. Union Bank of India will pay 4.80% interest on fixed deposits that mature in 91-120 days, and the PSU bank will provide 5.00% interest on those that mature in 121-180 days. Union Bank of India will pay 6.35% interest on domestic term deposits that mature between 181 and 1 year, and 6.80% interest on those that mature between 1 year and 398 days.
The bank will give an interest rate of 7.00% on fixed deposits that mature in 399 days, and Union Bank of India will offer an interest rate of 6.60% on those that mature in 400 to 455 days. The interest rate offered by Union Bank of India is 7.30% for deposits with a duration of 456 days and 6.60% for those with a duration of 457 days to 996 days. Union Bank of India will pay 6.40% interest on term deposits that mature in 997 days and 6.60% interest on those that mature in 998 days to less than three years.
The bank will pay 6.70% interest on fixed deposits that mature in three years, and the Union Bank of India will pay 6.50% interest on those that mature in three to ten years.
"Union Bank of India offers an additional rate component to resident senior and super senior citizens on term deposits up to Rs. 5.00 Crores in all of its domestic term deposits scheme. The additional rate component, applicable to resident senior citizen deposits is 0.50% over and above the normal rates displayed above. The additional rate component applicable to resident super senior citizens is 0.75% over and above the normal rate displayed above (0.25% over and above rate applicable to resident senior citizen)," mentioned Union Bank of India on its website.
| Period | Rates in % per annum |
|---|---|
| 7-14 Days | 3.5 |
| 15-30 Days | 3.5 |
| 31-45 Days | 3.5 |
| 46-90 Days | 4.5 |
| 91-120 Days | 4.8 |
| 121-180 Days | 5 |
| 181 Days to 332 days | 6.35 |
| 333 days | 6.35 |
| 334 days to 1 year | 6.35 |
| 1 year | 6.8 |
| 1 year to 398 Days | 6.8 |
| 399 Days | 7 |
| 400 days to 455 days | 6.6 |
| 456 days | 7.3 |
| 457 days to 2 years | 6.6 |
| 2 year to 996 days | 6.6 |
| 997 days | 6.4 |
| 998 days to less than 3 Years | 6.6 |
| 3 years | 6.7 |
| 3 Year to 5 years | 6.5 |
| 5 Years to 10 Years | 6.5 |
| Source: Bank Website |
Punjab National Bank FD Rates
On January 1, 2025, Punjab National Bank (PNB) revised the interest rates on domestic term deposits under Rs 3 Cr. Following the change, the bank is now giving 3.50% interest on 7-45 day tenures, and 4.50% interest on 46-90 day tenures. The bank will pay 5.50% interest on fixed deposits that mature between 91 and 179 days, and PNB will pay 6.25% interest on those that mature between 180 and 270 days. The interest rate on PNB term deposits that mature between 271 and 299 days is 6.50%, while the interest rate on deposits that mature within 300 days is 7.05%.
The bank will give an interest rate of 6.50% on fixed deposits that mature in 301-302 days, and PNB will offer an interest rate of 7.00% on those that mature in 303 days. PNB will give a 6.50% interest rate for 304 days to 1 year, and a 6.80% interest rate for 1 year to 399 days. PNB will pay 7.25% interest on domestic term deposits maturing in 400 days and 6.80% interest on those maturing in 401 days to 505 days.
The bank will pay an interest rate of 6.70% on fixed deposits that mature in 506 days, and PNB will give an interest rate of 6.80% on those that mature in 507 days to 2 years. For a fixed deposit duration of two to three years, PNB will give an interest rate of 7.00%; for a tenure of three years to twelve hundred and three days, the rate will be 6.50%.
Term deposits that mature in 1204 days will yield 6.40% interest, while those that mature in 1205 days to 1894 days would yield 6.50% interest at PNB. PNB will pay interest rates of 6.35% and 6.50% on FDs maturing in 1895 and 1896 days to 10 years, respectively.
| Period | Revised Rates For Public w.e.f. 01.01.2025 | *Revised Rates for Senior Citizens w.e.f. 01.01.2025 | #Revised Rates for Super Senior Citizens w.e.f. 01.01.2025 |
|---|---|---|---|
| 7 to 14 Days | 3.5 | 4 | 4.3 |
| 15 to 29 Days | 3.5 | 4 | 4.3 |
| 30 to 45 Days | 3.5 | 4 | 4.3 |
| 46 to 60 Days | 4.5 | 5 | 5.3 |
| 61 to 90 Days | 4.5 | 5 | 5.3 |
| 91 to 179 Days | 5.5 | 6 | 6.3 |
| 180 to 270 Days | 6.25 | 6.75 | 7.05 |
| 271 Days to 299 Days | 6.5 | 7 | 7.3 |
| 300 Days | 7.05 | 7.55 | 7.85 |
| 301 Days to 302 Days | 6.5 | 7 | 7.3 |
| 303 Days** | 7 | 7.5 | 7.8 |
| 304 Days to 1 Year | 6.5 | 7 | 7.3 |
| 1 Year | 6.8 | 7.3 | 7.6 |
| 1 Year to 399 days | 6.8 | 7.3 | 7.6 |
| 400 Days | 7.25 | 7.75 | 8.05 |
| 401 Days-505 Days | 6.8 | 7.3 | 7.6 |
| 506 Days** | 6.7 | 7.2 | 7.5 |
| 507 Days to 2 year | 6.8 | 7.3 | 7.6 |
| 2 years to 3 years | 7 | 7.5 | 7.8 |
| 3 years to 1203 days | 6.5 | 7 | 7.3 |
| 1204 days** | 6.4 | 6.9 | 7.2 |
| 1205 days to 5 years | 6.5 | 7 | 7.3 |
| 5 years to 1894 days | 6.5 | 7.3 | 7.3 |
| 1895 days** | 6.35 | 7.15 | 7.15 |
| 1896 days to 10 years | 6.5 | 7.3 | 7.3 |
| Source: Bank Website |
Punjab & Sind Bank FD
On January 1, 2025, Punjab & Sind Bank (PSB) increased the interest rates on fixed deposits under Rs 3 Cr. The bank is currently paying a maximum return of 7.50% on a 555-day tenure as a result of the modification. Senior citizens would receive an additional 0.50 percent interest on term deposits under Rs. 3 crore, in addition to the rates specified for new and renewal term deposits with maturities of 180 days or more.
"Super Senior Citizens (80 Years & above) shall be given benefit of additional interest of 0.15% on specific period (i.e. 333Days, 444Days, 555 Days, 777Days, 999Days, PSB Green Earth (22 M,44M,66M)) Term Deposits of less than Rs. 3 crore," mentioned PSB on its website.
The latest FD rates of Punjab & Sind Bank are as follows as per the official website of the bank.
| Maturity | Interest rates |
|---|---|
| 7 - 14 Days | 4.00(#) |
| 15 - 30 Days | 4 |
| 31 - 45 Days | 4.25 |
| 46 - 90 Days | 4.5 |
| 91 - 120 Days | 4.5 |
| 121-150 Days | 4.75 |
| 151 - 179 Days | 6 |
| 180 - 269 Days | 5.25 |
| 270 - 332 Days | 5.5 |
| 333 Days | 7.20($) |
| 334-1 Year | 5.5 |
| 1 Year | 6.3 |
| 1 Years - 443 Days | 6 |
| 444 Days | 7.30($) |
| 445 Days - 554 Days | 6 |
| 555 days ( Callable) | 7.45($) |
| 555 days ( Non - Callable)* | 7.50($) |
| 556 Days - 22 Months | 6 |
| 22 Months (PSB Green Earth) | 7.00* |
| >22 Months-2 Years | 6 |
| 2 Years - 776 Days | 6.3 |
| 777 Days | 7.25($) |
| 778 Days -998 Days | 6.3 |
| 999 Days ( Callable) | 6.65($) |
| 999 Days (Non-Callable)* | 7.40($) |
| 1000 Days - 3 Years | 6.3 |
| 3 Years - 44 Months | 6 |
| 44 Months (PSB Green Earth) | 6.75* |
| 44 Months - 5 years | 6 |
| 5 Years - 66 Months | 6.25 |
| 66 Months (PSB Green Earth) | 6.45* |
| 66 Months - 10 Years | 6.25 |
| Source: Bank Website |
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