In response to the ongoing adjustments in India’s monetary policy, two major banks—Punjab National Bank (PNB) and Bandhan Bank—have revised their fixed deposit (FD) interest rates. These changes, effective May 1, 2025, reflect a reduction of up to 25 basis points (bps) on select short- and medium-term tenures, as banks respond to the Reserve Bank of India’s recent repo rate cuts.
PNB’s decision marks its second rate adjustment in just a month, following an earlier revision in April 2025. The revised FD interest rates now range from 3.50% to 7.10%, depending on the maturity period. For general customers, the highest rate of 7.10% is available on a 390-day FD. These cuts come as part of the bank’s strategy to stay competitive in a low-interest-rate environment, influenced by the broader economic policy adjustments.
Special Rates for Senior Citizens
PNB continues to offer attractive rates for senior citizens. Those between 60 and 80 years old will receive an additional 50 basis points on deposits with maturities up to five years, and 80 basis points on deposits that extend beyond five years. This results in an interest range of 4.00% to 7.60%. For super senior citizens, or those aged 80 and above, the additional 80 basis points apply across all deposit tenures, raising the effective rates to 4.30% to 7.90%.
Bandhan Bank Follows Suit
Bandhan Bank has also made similar moves with its own fixed deposit rates, effective from May 1, 2025. The bank now offers FD rates ranging from 3% to 7.75%. The highest rate is available on one-year deposits, reflecting the ongoing trend of reduced returns on savings as part of broader economic shifts.
This rate revision follows the Reserve Bank of India’s decision to cut the key repo rate by 25 basis points, bringing it down to 6%. The central bank has maintained an accommodative stance, suggesting that further reductions in interest rates may follow. These changes are likely to continue influencing both bank deposit rates and the broader lending landscape in the coming months.
