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What is the PNB Tax Saver FD?

The PNB Tax Saver FD is a fixed deposit that is eligible for a tax deduction under Section 80C under the Income Tax Act, 1961. The FD account holder can claim a tax deduction of up to Rs 1.5 lakhs against the investment in a tax saving fixed deposit account.

Interest Income Option- Outflow of Interest

The interest earned will be paid out to the depositor on a monthly/ quarterly/ half yearly/ yearly basis. The quarterly interest will be paid on a simple rate of interest. The monthly interest will be paid at discounted value. The same shall be quarterly compounded in case of half-yearly and yearly payment of interest. 

Maturity Option (Re-Invested Interest)

The interest is compounded on a quarterly basis and the accrued interest is payable on maturity of the fixed deposit. The incomplete quarter of such deposit shall be reckoned at the end, for the purpose of calculation of interest.

PNB Tax Saver FD Interest Rates 2024

Type of DepositorRate of Interest
General Public3.5% – 7.25%
Senior Citizen4% – 7.75%
  • In the case of a senior citizen, 0.50% additional interest (subject to change as per bank guidelines from time to time)
  • 1% additional interest in the case of a staff member will be paid over and above the Tax saver FD interest rate. This rate is including any additional interest payable to senior citizens under the scheme.
  • In the case of staff members and retired staff members who are also senior citizens, the highest rate of interest that can be charged is 1% over the scheme’s interest rate.
  • Interest will be paid in accordance with the depositors’ indicated preference at the time of deposit.

Eligibility for PNB Tax Saver FD Scheme

  • Individuals account holders, including NRI, senior citizens, joint accounts and minor account holders
  • The joint account holder will receive a FD receipt in the name of both the adults. The maturity value will be payable to either of the holders or to the survivor. The first holder will be eligible to claim the tax deduction under section 80C.
  • Hindu Undivided family (HUF)

Features of a PNB Tax Saver FD

  • A minimum deposit of Rs 100 or in multiples thereof. A maximum investment of Rs 1.5 lakh in a financial year
  • A declaration from the depositor(s) to be obtained at the time of opening of Account, under the Scheme. The declaration must be annexed with AOF of the depositor only.
  • Minimum duration of 5 years from the date of opening the tax saving fixed deposit account.
  • The FD account can be opened for a maximum period of 10 years including incomplete quarters of 82 months, 95 months and 16 days so on.
  • The tax saver fixed deposit cannot be withdrawn prematurely before the lock-in period of 5 years. However, an account holder can prematurely withdraw only in the case of the death of a depositor. Moreover, on the death of a depositor before maturity, the penalty will be waived. The nominee and/ or the legal heir will be allowed to redeem the fixed deposit before the expiry of the lock-in of 5 years.
  • The fixed deposit investment is tax-free. However, the interest on FD is taxable under the Income Tax, 1961 under the head income from other sources. The interest income is subject to deduction of TDS as per section 194A. The FD account holder will receive the TDS certificate and a credit in the Form 26AS. The account holder can claim the TDS deduction while filing the income tax return. 
  • If the FD account holder dies without stating a nominee for the FD account then the bank branch will proceed with paying the maturity amount to the legal heirs as per rules.
  • The depositor cannot pledge a loan against the tax saving fixed deposit as a collateral or security. However, the deposit may pledge the FD as a security and avail a loan after the expiry of the lock-in period of 5 years.

PNB Tax Saver FD Receipt

  • The depositor’s name, address, Permanent Account Number (PAN), and signature must appear on the fixed deposit receipt issued under the scheme.
  • On current AOFs, a rubber stamp with the Scheme’s name and the depositor’s Permanent Account Number (PAN) should be affixed.
  • The depositor will receive a term deposit receipt only if he or she has requested the bank’s branch for prescribed form. They must sign the FDR/ FDRs in the presence of a Bank official.

Replacement of lost or destroyed Term Deposit Receipts

  • If a FD receipt is lost, stolen, destroyed, mutilated, or defaced, the depositor/depositors must apply to the issuing branch. They must include details, including the account number, amount, and date of the receipt, as well as the circumstances surrounding the loss, theft, destruction, mutilation, or defacement, for a duplicate receipt.
  • After verification of the complete incident of such loss, theft, destruction, mutilation, or defacement of the receipt, the incumbent In-charge shall allow for the issuance of a duplicate receipt to the applicant. He or she must furnish an indemnity bond in the Bank’s prescribed form with one or more sureties, acceptable to the Bank, or with a bank guarantee as the case may be.
  • A duplicate receipt or receipts can be provided to the depositor if the face value or aggregate face value of the receipt or receipts indicated above is five hundred rupees or less, providing an indemnity bond without any surety or guarantee.
  • If the mutilated or defaced receipt is surrendered and the receipt can be identified as the one originally issued by the branch, a duplicate receipt can be issued without any indemnity bond, surety, or guarantee.
  • For the purposes of this plan, a duplicate receipt issued shall be treated as equivalent to the original receipt. It shall not be en-cashable at any branch other than the branch where it was issued without adequate verification.

How to open a PNB Tax Saver FD?

You can open a PNB Tax Saver FD either online or offline. The process is seamless, easy and timely for a depositor.


You can open a fixed deposit account online by logging in to your internet banking account. You can fill a FD account opening form mentioning the details including the amount, tenure, maturity options, nomination facility, interest payment options. The amount will be auto-debited from your savings bank account. You will receive a fixed deposit receipt through your email account. Since your KYC is updated with the bank you need not submit any further documents.


You can visit the nearest branch of the bank and fill a FD account opening form. Along with the form you must submit a few documents. These documents include PAN, a passport size photograph, and address proof such as Aadhaar, Voter ID, etc.