Punjab National Bank (PNB) is one of the leading public sector banks in India that offers safe and reliable investment options to its customers. Among them, the Fixed Deposit (FD) scheme remains the most popular. FD is considered a secure way to grow your savings because the returns are guaranteed and not linked to market fluctuations.
In today’s time, when stock markets and mutual funds can be volatile, many investors prefer FDs for stability and assured returns. This article explains in detail how much return you can earn if you invest ₹2 lakh in a PNB FD for 5 years, along with the rules, tax implications, and benefits of this scheme.
Also Read: PNB FD Scheme: Invest ₹2 Lakh and Earn ₹50,000 Interest with Punjab National Bank Fixed Deposit
What is a Fixed Deposit (FD) and Why is it Popular?
A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum of money with a bank for a fixed tenure. The bank pays you interest at a pre-decided rate, and at maturity, you get back your principal amount along with the accumulated interest.
FDs are popular because:
- Returns are fixed and guaranteed.
- No market risk is involved.
- Backed by the bank’s credibility.
- Flexible withdrawal options are available.
Returns on ₹2 Lakh FD in PNB
If you invest ₹2,00,000 in PNB FD for 5 years at the current interest rate of 7.25% per annum, here is the maturity calculation:
- Principal Amount: ₹2,00,000
- Interest Rate: 7.25% per annum
- Tenure: 5 years
- Total Interest Earned: ₹77,445
- Maturity Amount: ₹2,77,445
This means your ₹2 lakh savings will grow to ₹2,77,445 in 5 years, giving you a profit of ₹77,445 without any market risk.
Also Read: PNB Bank FD Scheme: How ₹2 Lakh Becomes ₹2,77,445 Best Fixed Deposit 2025
Rules and Features of PNB FD Scheme
- Minimum Deposit: ₹1000
- Maximum Deposit: No upper limit
- Tenure Options: From 7 days to 10 years
- Interest Payout Options: Monthly, quarterly, annually, or lump sum at maturity
- Senior Citizen Benefits: Higher interest rates compared to regular customers
- Premature Withdrawal: Allowed with applicable penalty charges
Tax Implications on FD
- Interest earned on FD is taxable as per your income tax
- If annual interest income exceeds ₹40,000, Tax Deducted at Source will apply.
- Investors can choose a 5-year tax-saving FD under Section 80C of the Income Tax Act to claim tax deductions.
Who Should Invest in PNB FD?
PNB FD is ideal for:
- Retired individuals who want safe income with guaranteed returns.
- Salaried employees looking to secure their savings.
- Middle-class families saving for children’s education, marriage, or home needs.
- Conservative investors who want to avoid stock market and mutual fund risks.
Comparison with Other Investment Options
- FD vs Stock Market / Mutual Funds: FD offers lower but guaranteed returns, while markets can deliver higher returns with higher risks.
- FD vs RD (Recurring Deposit): RD requires monthly savings, whereas FD allows a one-time lump sum deposit.
- FD vs PPF/NSC: Government schemes offer good returns but have a longer lock-in period, while FD is more flexible.
Also Read : 5 Profitable Small Business Ideas to Start in 2025 Alongside Your Job
Key Benefits of PNB FD
Safe and secure investment with guaranteed returns.
- Flexible tenures from a few days to 10 years.
- Additional interest rate benefits for senior citizens.
- Tax-saving option available under Section 80C for 5-year FDs.
- Facility for premature withdrawal in case of emergencies.
Final Thoughts
The PNB Bank FD Scheme 2025 is one of the safest and most reliable investment options. With a ₹2 lakh FD for 5 years at 7.25%, the maturity value will be ₹2,77,445, which includes ₹77,445 as interest income.
also read: Punjab National Bank Home Loan Procedure 2025: Updated Steps and Complete Guide
This scheme is particularly suitable for individuals and families who prioritize safety, stability, and guaranteed returns over high-risk investments.