PNB raises fixed deposits rates by up to 1.25 per cent

Punjab National Bank (PNB), the country's second largest public sector lender, has raised interest rates on fixed deposits of select maturities by up to 1.25 per cent.

PNB will pay 8.75 per cent interest on fixed term deposits of less than Rs1 crore for periods of 180 days to less than a year.

"The Bank has decided to realign the interest rates with the prevailing market rates and accordingly the rate of interest on single domestic term deposit of less than Rs1 crore has been revised from 7.50 per cent to 8.75 per cent for maturity period of 180 days to less than one year," PNB said in a filing with the BSE.

The revised rates will be effective from 1 March 2013, it added.

PNB, however, limited the additional interest benefit for senior citizens to 0.25 per cent from the existing 0.50 per cent and fixed it at 9.0 per cent.

These revised interest rates will be applicable to fresh deposits and renewal of existing term deposits, the bank said.
 
These interest rates would also apply to term deposit accounts opened under Capital Gains Account Scheme, 1988 (operative in all branches except rural offices), PNB added.

State Bank of India (SBI), the country's largest lender had on Wednesday announced a 0.25 per cent increase in interest rates on fixed deposits of select maturities.