As of June 1, 2025, two state-owned banks, Punjab National Bank and Canara Bank, have updated their interest rates on fixed deposits. The changes apply to deposits less than ₹3 crore for general citizens, with senior citizens eligible for an additional 50 basis points.
Punjab National Bank’s new interest rates range from 3.50% to 6.90% per annum, depending on the tenure. The rates are as follows: 3.5% for 7-45 days, 4.5% for 46-90 days, 5.5% for 91-179 days, 6% for 180-270 days, 6.25% for 271-302 days, 6.15% for 303 days, and 6.25% for 304 days to less than one year. The one-year fixed deposit rate is 6.70%.
Canara Bank’s interest rates range from 4% to 7% per annum, with senior citizens also receiving an extra 50 basis points. The bank has reduced the interest rate on one-year tenure by 10 basis points to 6.75% and on 3-5 year tenures by 25 basis points to 6.75%. The bank offers the highest interest rate of 7% on a 444-day tenure. Other rates include 6.85% for 1-2 years, 6.9% for 2-3 years, 6.75% for 3-5 years, and 6.70% for 5-10 years.
These changes reflect the ongoing adjustments in the banking sector, with lenders responding to market conditions and monetary policy shifts. The revised interest rates may impact the attractiveness of fixed deposits as a savings option for individuals, and customers are advised to review the updated rates before making any investment decisions. Both banks aim to provide competitive rates while balancing their business needs, and the updated rates will be effective for all new deposits made on or after June 1, 2025.