PNB Tax Shield Fixed Deposit Scheme

PNB TAX Saver Fixed Deposit Rates  

Below are the revised PNB TAX Saver Fixed Deposit Rates for general and senior citizens. Check them out before investing:

PNB TAX SAVER FIXED DEPOSIT SCHEME with effect from 01.09.2025

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Features of PNB Tax Shield Fixed Deposit Scheme

The key features of PNB Tax Shield Fixed Deposit Scheme are as follows:

• Deposit Amount: Minimum Rs. 100/-, multiples thereof up to Rs. 1.50 lakh per financial year. Annexure-B required with Account Opening Form.

• Period of Deposit: This investment option is available for a tenure of 5 years, with no auto-renewal.

• Interest Options: Income Option (monthly/quarterly/half-yearly/yearly) or Maturity Option (compounded quarterly, payable at maturity).

• Rate of Interest: PNB FD Interest rates are set by the bank's Head Office and may change periodically. The following extra benefits apply to Domestic and NRO deposits only:

  • Senior Citizens: Get 0.50% extra interest.
  • Staff Members: Get 1.00% extra interest.
  • Retired Staff: The maximum extra interest is capped at 1.00% over the standard rate.

  Note: These extra rates do not apply to NRE or FCNR (B) accounts

• Issue of Term Deposit Receipt: Includes name, address, PAN, and depositor's signature. Scheme name and PAN stamped on AOF.

• Loan/Advance: Term deposit not lien/pledged. No advances under this tax-savings investment scheme.

• Replacement of Lost Receipts: Apply for duplicate with account details. Indemnity bond/surety required, or without receipts Rs. 500 or less.

• Premature Withdrawal: Not allowed before 5-year lock-in. Exemption for premature payment in case of depositor's death.

• Payment to Legal Heirs: Paid to legal heirs without nomination, per rules.

• Income Tax Deduction: Interest taxed under Section 80C of Income Tax Act, with TDS deduction per guidelines.

Eligibility Criteria for PNB Tax Shield Fixed Deposit Scheme

• Indian Citizens Abroad
• Special Workers: Seafarers (Merchant Navy), oil rig workers, and foreign airline staff.
• OCI Cardholders 
• Govt Employees
• With another NRI: You can open an account together with full rights for both people.
• With a Resident Relative: You can add an Indian resident only as a "Survivor". 

Note: This means only the NRI can use the account. The resident relative can only access the money if the NRI passes away.

Wrapping Up 

The PNB Tax Shield Fixed Deposit Scheme is a first choice for conservative investors seeking guaranteed returns and tax efficiency. By offering a deduction of up to ₹1.5 lakh under Section 80C, it helps lower your annual tax liability while providing competitive interest rates of up to 6.75% for senior citizens. Although the scheme requires a mandatory 5-year lock-in period with no premature withdrawals or loan against deposit. It serves as an excellent long-term tool for disciplined wealth preservation and stable income growth.