Punjab National Bank and Canara Bank have revised the interest rate on term deposits below Rs 3 crore. The revised FD rates for both public sector banks came into effect from June 1.

The change in FD rates precedes the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting from June 4 to 6. It is expected that the central bank will announce a cut in the repo rate after its upcoming monetary policy review meeting.

Let’s take a look at the FD rates of the leading public sector banks, including the State Bank of India (SBI).

Canara Bank New FD Rates

General customers will now earn between 4% and 7% interest on fixed deposits (FDs) of varying tenures. For senior citizens, the public sector lender will offer interest rates ranging from 4% to 7.5%. For term deposits with a tenure of one year, the bank has reduced the FD interest rate by 10 basis points to 6.75%. 

Similarly, the bank has lowered the interest rate by 25 bps, from 7% to 6.75%, on FDs with a term of three years or more but less than five years.

Punjab National Bank FD Rates

The second largest public sector lender is offering FD interest rates between 3.5% and 6.9% for general citizens. The highest return is 6.9% for the 390-day FD. The bank was earlier offering 7% on the same tenure.

For term deposits ranging from over a year to 389 days, Punjab National Bank has reduced the FD interest rate by 10 bps to 6.70%. The interest rate on term deposits with a tenure of 391 days to 505 days, as well as 507 days to two years, the interest rate has been reduced to 6.7%

For the 1204-day tenure, PNB has increased the FD rate by 25 bps to 6.4%. For term deposits ranging from 1205 days to five years, the rate has been increased by 25 bps to 6.5%.

For senior citizens, the public sector bank is providing interest rates between 4% and 7.4% for various tenures. For super senior citizens, the interest rate can go up to 7.7% on a term deposit of 390 days.

Latest PSU Banks FD Rates

Apart from PNB and Canara Bank, other public sector lenders have not revised their FD rates. Take a look at the latest FD rates offered by leading public sector banks.

RBI MPC June 2025: Expectations

The RBI is expected to cut the repo rate by 50 bps, according to a report by SBI. The report said that the central bank could go for a ‘jumbo cut’ to bolster economic growth and revive the slowing credit cycle. The report also added that the RBI’s cumulative key lending rate cut could reach 100 basis points in the ongoing cycle.

The RBI Monetary Policy Meeting will begin on June 4 and conclude on June 6.

. Read more on Personal Finance by NDTV Profit.The FD interest rates vary between 4% and 7.7% for different tenures across top public sector banks.  Read MorePersonal Finance 

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