Looking for a Short-Term Investment? PNB’s 390-Day FD Plan Might Be Just What You Need – Here’s What You’ll Earn on ₹3 Lakh

In today’s unpredictable financial environment, where market-linked investments often come with volatility, fixed deposits (FDs) remain a preferred choice for risk-averse individuals. They offer security, fixed returns, and clarity on maturity amounts. While most public sector banks in India have aligned their interest rates in response to policy changes by the Reserve Bank of India (RBI), some banks continue to offer attractive returns on select FD products — one of them being Punjab National Bank (PNB).

PNB, a prominent name among India’s 12 public sector banks, is currently offering a promising return on its 390-day fixed deposit scheme. Amidst falling interest rates across banking products, this particular FD option stands out for those seeking a relatively short lock-in period with decent returns.

Let’s break down everything you need to know about this FD plan and how much return you can expect on a ₹3,00,000 investment.

Over the past few months, the Reserve Bank of India has made significant cuts to the repo rate — the rate at which it lends money to commercial banks. This has had a ripple effect across the banking system, leading to reduced interest rates on loans and deposits. While borrowers have benefited from lower EMI burdens, fixed-income investors, especially those relying on FDs, have seen a dip in returns.

To remain competitive and continue attracting depositors, some public sector banks, including PNB, have introduced FD schemes with slightly higher interest rates for specific tenures — such as the 390-day deposit.

What Does PNB Offer on Its 390-Day FD?

Punjab National Bank offers fixed deposit schemes ranging from as short as 7 days to as long as 10 years. Depending on the tenure, the bank currently provides interest rates starting at 3.25% and going up to 7.50%.

For its 390-day fixed deposit, the bank offers the following:

6.70% interest for regular customers (below 60 years of age)

7.20% interest for senior citizens (60 years and above), offering a 0.50% higher rate than standard customers

This makes the scheme particularly beneficial for older investors who rely on FDs for stable and predictable income.

How Much Will You Earn on a ₹3,00,000 Investment?

If you decide to invest ₹3 lakh in PNB’s 390-day FD scheme, your returns will vary slightly based on your age group.

For regular customers (below 60 years):

You will receive ₹3,22,073 on maturity. This includes ₹22,073 as interest earned during the period.

For senior citizens (60 years and above):

You will receive ₹3,23,768 on maturity. That’s a total return of ₹23,768, thanks to the additional 0.50% interest rate offered.

This minor yet impactful difference highlights the advantage senior citizens enjoy when investing in fixed deposits, especially under schemes designed to reward long-term or retirement-based savings.

Is This FD a Good Choice for You?

PNB’s 390-day FD strikes a balance between a short-term holding period and competitive interest earnings. For individuals who want to park their funds for just over a year — without tying them up for multiple years — this scheme offers both safety and returns. It’s especially attractive in a time when most banks have lowered their FD rates due to RBI’s policy direction.

Moreover, for senior citizens, the additional interest makes this option even more lucrative, allowing them to enhance their fixed income without taking on extra risk.

While fixed deposits may not offer the high returns of equities or mutual funds, their strength lies in stability and predictability. PNB’s 390-day FD plan is a clear example of how thoughtful financial planning — even for the short term — can yield reasonable returns with minimal risk. Whether you’re saving for a specific goal or simply looking for a safe haven for your funds, this FD scheme deserves your consideration.

As always, it’s wise to compare FD options across different banks and align your investment with your financial goals. But for now, if safety and assured growth in just over a year are your priorities, PNB’s 390-day fixed deposit might be a smart move.