Which FD offers maximum interest Rate? Comparison Between SBI Vs PNB

Banks Fixed Deposits have captured the interest of investors as many banks have hiked the interest rates after RBI last month on May 4 announced a hike of 40 bps in repo rate. The two leading public lenders namely State Bank of India (SBI) and Punjab National Bank (PNB) have revised their interest rates.

According to the website of SBI Bank, the new interest rates have become effective since May 10. Let us find out which bank is offering maximum interest rates to general citizens and senior citizens and under which tenor.

SBI Bank

When it comes to the leading public sector lender, it is offering from a minimum tenor of 7 days to maximum 10 years for general citizens and senior citizens. The interest rates offered by SBI begins from as low as 2.90% (7-45 days) to a maximum of 5.50% p.a. (5 years and up to 10 years) to general citizens. In the tenor of 3 years to less than 5 years, general citizens can get 5.45% p.a. interest rate.

Meanwhile, senior citizens will get a higher interest rate. For FDs for the tenor of 3 years to less than 5 years, the interest rate is fixed at 5.95% p.a. and for the tenor of 5 years and up to 10 years, the rate of interest will be 6.30% p.a. If a general citizens invests Rs 200,000 for 5 years tenor, he can fetch an interest income of approximately 63,140 while senior citizens can earn an interest income of approximately Rs 73,826 after five years period.

PNB

The bank offers term deposits interest rates from a minimum of 3% to maximum 5.25% to general citizens for the tenors of 7 days to 10 years. The bank offers additional interest rates to senior citizens from a minimum of 3.50% to a maximum of 5.75% p.a. for FDs for the tenors of 7 days to 10 years. You can also avail several FD products that may include NRO, NRE, Domestic TD, etc. to cater to the demand of vast citizens. If you are looking for maximum tenor FDs available with PNB, you must opt for above 3 years and Up to 10 years FDs for both general and senior citizens. FDs above 3 years and up to 5 years offers interest rate of 5.25% for general citizens while senior citizens will get an interest rate of 5.75%. FDs in the tenor of above 5 years and up to 10 years will offer same interest rates as the one available in above 3 years and up to 5 years for both general and senior citizens. If general citizens invest a sum of Rs 200,000 with PNB's FD for above 3 years and up to 5 years tenor, they can get an approximate interest income of Rs 59,886 after 5 years tenure.

Conclusion

Therefore, if a person invests with SBI Bank, he/she can get a higher interest rates and better interest income when the FD is matured. The interest income offered by SBI in the tenor of both 3 years to up to 10 years is higher than PNB.