Punjab National Bank (PNB) has revised its Savings Deposit Interest Rates effective 01 October 2025. The new structure follows a slab-based system depending on the account balance. In this article, we cover the latest PNB savings account interest rate, complete historical rate changes, trend analysis, and whether keeping large funds in a savings account still makes sense.
PNB Savings Account Interest Rate (Revised w.e.f. 01.10.2025)
PNB now offers the following interest rates on savings deposits:
| Account Balance Slab | Interest Rate (p.a.) |
|---|---|
| Up to ₹100 Crore | 2.50% |
| Above ₹100 Crore ≤ ₹500 Crore | 2.70% |
| Above ₹500 Crore ≤ ₹1,000 Crore | 3.60% |
| Above ₹1,000 Crore ≤ ₹2,000 Crore | 3.75% |
| Above ₹2,000 Crore | 4.25% |
How Interest is Calculated
- Interest is calculated on the daily closing balance
- Interest is credited quarterly
- Rates are subject to change as per bank policy
Historical PNB Savings Account Interest Rates
Over the years, PNB savings interest rates have gradually declined from the earlier 4% range to the current lower slab structure.
w.e.f. 01.07.2025
- Up to ₹100 Crore – 2.50%
- Above ₹100 Crore – 2.70%
w.e.f. 01.01.2023
- Below ₹10 Lakh – 2.70%
- ₹10 Lakh to < ₹100 Crore – 2.75%
- ₹100 Crore & above – 3.00%
2022 Revisions
- 04.04.2022 – 2.70% / 2.75%
- 16.02.2022 – 2.75% / 2.80%
- 03.02.2022 – 2.75% / 2.80% / 3.25%
- 01.01.2022 – 2.80% / 2.85% / 3.25%
- 01.12.2021 – 2.80% / 2.85%
2021 Changes
- 01.09.2021 – 2.90%
- 01.07.2021 – 3.00%
- 01.03.2021 – 3.00% / 3.50%
2020 Changes
- 01.09.2020 – 3.00%
- 01.07.2020 – 3.00% / 3.25%
- 01.04.2020 – 3.50% / 3.75%
2019
- 01.09.2019 – 3.25% / 3.50% / 3.80%
2017
- 19.08.2017 – 3.50% / 4.00%
2011
- 03.05.2011 – 4.00%
PNB Savings Account Interest Rate Trend Analysis
From 2011 to 2017, PNB offered a flat 4% interest rate on savings accounts. However, after 2019 and especially post-2020, interest rates were reduced significantly in line with:
- RBI repo rate adjustments
- Liquidity conditions in the banking system
- Cost of funds management by banks
Retail customers (balances below ₹10 lakh) now earn around 2.50%–2.75%, which is considerably lower compared to earlier years.
On the other hand, ultra-high net-worth and institutional customers with balances above ₹2,000 crore receive up to 4.25%, which is close to earlier savings rates.
Should You Keep Money in a Savings Account?
A savings account is one of the safest and most liquid financial tools available. However, whether you should keep large amounts in it depends on your financial goals, risk appetite, and return expectations. Let’s break it down clearly.
A savings account is ideal for:
- Emergency funds
- Monthly expenses
- Short-term liquidity
- Salary credit
However, for higher returns:
- Consider Fixed Deposits (FDs)
- Use Auto Sweep Facility
- Explore Short-Term Debt Funds (after understanding risks)
- Diversify surplus funds
If your balance regularly exceeds ₹5–10 lakh, shifting excess funds to higher-yield instruments may improve returns.
PNB Savings Account Interest Rate Key Highlights
- Latest PNB savings rate starts at 2.50% p.a.
- Maximum rate available is 4.25% p.a.
- Interest calculated on daily closing balance
- Credited quarterly
- Rates have declined from 4% (2011) to current levels
About Punjab National Bank
Founded in 1894, Punjab National Bank is one of India’s leading public sector banks. It offers savings accounts, fixed deposits, loans, digital banking services, and corporate banking solutions across the country.
Official Reference : Interest Rates fixed deposits, Interest rate deposit, interest rate
Rajil M P is an experienced banking professional with over eight years of hands-on experience in the Indian banking sector. Over the years, he has worked extensively in retail banking, loan processing, deposit management, compliance monitoring, and customer relationship management—gaining practical exposure to real-world banking operations and regulatory practices.
To strengthen his professional expertise and stay aligned with evolving financial standards, Rajil has successfully cleared multiple flagship certifications conducted by the Indian Institute of Banking & Finance (IIBF),
Rajil M P is the founder and editor of IndianBanker.com, a trusted platform focused on banking news, RBI policy updates, financial insights, exam preparation resources, and practical calculators for banking aspirants and professionals.
Discover more from Indian Banker
Subscribe to get the latest posts sent to your email.
