PNB FD: The bank has lowered the interest rates by up to 0.50 percentage point on select maturities.

State-run Punjab National Bank (PNB) has revised its fixed deposit interest rates with effect from September 1, 2019. PNB has lowered the interest rates by up to 0.50 percentage point on select maturities, according to the public sector bank's website -- pnbindia.in. On maturity periods such as 7-14 days and 15-29 days, the bank is offering an interest rate of 4.5 per cent to the general public and 5 per cent to senior citizens on fixed deposits of up to Rs. 2 crore. Previously, the bank paid interest rates of 5 per cent and 5.5 per cent on these FD maturities respectively.

On fixed deposits of 1-3 years maturity period, the public sector lender has lowered its interest rates by 0.25 percentage point. After the revision, PNB is offering interest at the rates of 6.5 per cent and 7 per cent on such fixed deposits to the general public and senior citizens respectively.

Here are the interest rates paid by PNB on FDs up to Rs. 2 crore with effect from September 1:

Period General public Senior citizens 7 to 14 days 4.5% 5% 15 to 29 days 4.5% 5% 30 to 45 days 4.5% 5% 46 to 90 days 5.5% 6% 91 to 179 days 5.5% 6% 180 days to 270 days 6% 6.5% 271 days to less than 1 year 6.25% 6.75% 333 days 6.3% 6.8% 1 year 6.6% 7.1% 444 days 6.6% 7.1% 555 days 6.6% 7.1% above 1 year & up to 3 years 6.5% 7% above 3 year & up to 5 years 6.5% 7% above 5 years & up to 10 years 6.5% 7%

The government on Friday announced that Punjab National Bank, Oriental Bank of Commerce and United Bank will be merged to form the country's second largest public sector bank, after State Bank of India.

After the mega PSU bank consolidation, there will be 12 public sector banks in the system instead of 27, Finance Minister Nirmala Sitharaman said.

Fixed deposit interest rates are subject to change from time to time. Earlier this week, the country's largest private lender HDFC Bank revised its FD rates.