PNB Short Term FD

Overview of PNB Short Term FD

The PNB Short Term FD is suitable for depositors looking to invest funds for durations ranging from 7 days up to 1 year, offering assured returns and easy liquidity. Senior citizens aged 60–80 years get an additional 0.5%, and those aged 80+ get 0.8% over the standard FD rates. These preferential FD interest rates apply to different tenures and customer categories.

PNB Short Term FD Interest Rates

PNB offers competitive interest rates on its short-term FDs for deposits below ₹3 crore:

*PNB Short-Term FD interest rates w.e.f. 1 September, 2025

Key Features of PNB Short Term FD

PNB Short Term FD offers a range of benefits and features designed to provide flexibility, liquidity, and secure returns for depositors:

• Low Minimum Deposit: You can open a PNB short‑term FD with as little as ₹100, making it accessible for small savers as well as large depositors.
• Premature‑Withdrawal Option: PNB permits FD premature withdrawal across most FD schemes, though a penalty usually applies. In many cases, this is around 1% of the applicable interest rate on the withdrawn amount.
• Loan and Overdraft Facility: You may avail a loan or overdraft facility against your FD in many of PNB’s deposit schemes, in certain cases up to 90% of the FD amount.
• Sweep‑In / Sweep‑Out Feature: PNB offers flexible options through its Sugam Term Deposit and other schemes that support automatic transfers (sweep-in FD) and partial withdrawals (sweep-out FD). These features help depositors maintain liquidity while still earning returns.

How to Open a PNB Short Term FD?

Opening a PNB short-term Fixed Deposit (FD) is a simple and convenient process that can be completed either online or offline, depending on your preference:

Online Process to Open PNB Short Term FD

The online process allows you to create an FD without visiting a branch, offering ease and speed:

• Log in to PNB Internet Banking: Access your account using your credentials through PNB’s official internet banking portal. Only customers with an active savings or current account can use this facility.
• Navigate to the Fixed Deposit Section: Once logged in, go to the “Deposits” menu and select “Fixed Deposit” to initiate the creation of a new FD.
• Select Tenure and FD Type: Choose a short-term FD and specify the tenure as per your financial requirement. PNB offers tenures from 7 days up to 1 year for retail customers.
• Enter Deposit Amount: Specify the amount you wish to invest. PNB short term FDs are highly accessible with a minimum deposit of ₹100, making it suitable for small and large investors alike.
• Choose Withdrawal Option: Decide whether you want the FD to be callable, which allows premature withdrawal if required. The system will also show the applicable Punjab National Bank FD rates for your selection.
• Confirm and Fund FD: Review all details carefully, including tenure, amount, and interest rate. Once confirmed, transfer the funds from your linked account to the FD. Upon successful creation, a digital FD receipt will be generated.

Offline Process to Open PNB Short Term FD

For customers who prefer visiting a branch, PNB ensures a smooth offline process:

• Visit a PNB Branch: Go to your nearest PNB branch during working hours and request assistance for opening a short-term FD.
• Request the FD Application Form: Collect the fixed deposit application form from the cashier or help desk.
• Fill in the Form: Enter all required details, including your account number, deposit amount, FD type, and tenure.
• Submit KYC and Identity Proof: Provide valid identity and address proof as per PNB’s Know Your Customer (KYC) requirements.
• Deposit the Funds: Hand over the deposit amount via cheque or cash. The bank will process your FD once the payment is received.
• Collect FD Receipt: After processing, you will receive a physical FD certificate or receipt indicating the deposit amount, tenure, interest rate, and maturity date.

Eligibility Requirements for PNB Short Term FD

To open a short term FD in PNB, applicants must meet certain eligibility criteria set by the bank. These requirements ensure compliance with regulatory norms and smooth processing of deposits. Key eligibility conditions include:

• Account Requirement: You must be an individual resident Indian with an active PNB savings or current account. If you do not have one, opening an account is mandatory before creating an FD.
• Age Criteria: The depositor should be at least 18 years old. Minors can open an FD only through a parent or legal guardian as per PNB’s policies.
• KYC Documents: Valid identity and address proof are required, such as Aadhar, PAN, Voter ID, or Passport, for verification purposes.
• Minimum Deposit: The FD must meet the bank’s minimum deposit requirement, currently ₹100, making it accessible to a wide range of investors.
• Special Categories: Senior citizens (60 to <80 years) and super senior citizens (80 years and above) are eligible for preferential interest rates as per PNB policy.

Tax Implications on PNB Short Term FD

Interest earned on a Punjab National Bank (PNB) short‑term fixed deposit is fully taxable under the Indian Income Tax Act. The bank will deduct TDS (Tax Deducted at Source) if the total interest in a financial year exceeds ₹50,000 for the general public and ₹1,00,000 for senior citizens. To avoid TDS, eligible individuals can submit Form 15G or Form 15H. You must declare this interest income in your Income Tax Return and may claim a refund if excess TDS has been deducted.

Final Thoughts

PNB Short Term FD is a reliable and flexible investment option for tenures of up to one year. It offers interest rates ranging from 3.00% to 6.25% for the general public, 3.50% to 6.75% for senior citizens (ages 60 to <80), and 3.80% to 7.05% for super senior citizens (80 years and above). With a low minimum deposit of ₹100 and additional benefits for senior depositors, it ensures secure and competitive returns for short-term investors.