State-Run Lenders Revise Fixed Deposit Rates, Senior Citizens Eligible for Up to 7.25 Percent Return

Punjab National Bank and Canara Bank have revised their domestic term deposit interest rates starting early November. Under the updated structures, senior citizens can earn up to 7.25 percent and regular depositors can secure up to 6.75 percent on special tenures.

Depositors seeking assured returns and portfolio stability have fresh options as two leading public sector lenders have updated their fixed deposit offerings. Punjab National Bank and Canara Bank have restructured interest rates across multiple deposit buckets for domestic term deposits under 3 crore rupees. These revised returns came into effect during the opening days of November 2026, creating opportunities for retail savers and retirees looking to optimize their interest earnings without taking market exposure. The highest interest rates under the revised schedules reach 7.25 percent for senior citizens and 6.75 percent for general retail depositors, with specific short-duration special tenures yielding the strongest returns across both institutions.

Canara Bank Implements Up to 15 Basis Points Increase
Canara Bank adjusted its deposit schedule effective 2 November 2026, delivering an increase of up to 15 basis points on selected maturities. The bank structured its highest yield around a specialized 555-day deposit tenure. For this 555-day bucket, general retail depositors now earn 6.75 percent per annum, rising from the previous level of 6.60 percent. For senior citizen depositors, the interest rate for the identical maturity moved up from 7.10 percent to 7.25 percent, marking the highest single return across the institution's standard domestic term offerings.

Beyond the top-yielding bracket, Canara Bank maintained competitive payouts for intermediate commitments, particularly its 444-day special deposit program. Savers choosing the 444-day maturity receive 6.65 percent in the regular category and 7.15 percent in the senior citizen bracket. For commitments running from two years up to less than three years, the lender provides 6.25 percent to general customers and 6.75 percent to older individuals. Exactly the same returns of 6.25 percent for general depositors and 6.75 percent for senior citizens apply to maturities spanning three years to less than five years, as well as extended deposits running from five years up to ten years.

Complete Tenure Breakdown for Canara Bank Term Deposits
The revised schedule at Canara Bank spans ultra-short maturities through multi-year commitments under the 3 crore rupee ceiling. For initial placements lasting between 7 days and 45 days, both regular investors and senior citizens receive an identical 3 percent rate. Placing funds for 46 days to 90 days yields 4 percent across both categories, while deposits committed for 91 days to 179 days generate a 4.25 percent return without any age differential.

Divergence between customer categories begins once tenures cross into longer ranges. For deposits spanning 180 days to 269 days, regular retail customers earn 5.25 percent, whereas senior citizens receive 5.75 percent. Moving to the bucket from 270 days to less than one year, the rates step up to 5.50 percent for general savers and 6 percent for senior citizens. For tenures lasting from one year up to one year and three months (excluding the 444-day bucket), standard depositors secure 6.40 percent and seniors earn 6.90 percent. As noted, the specialized 444-day tenure pays 6.65 percent and 7.15 percent, while the 555-day basket delivers the top figures of 6.75 percent and 7.25 percent. All subsequent standard buckets, covering more than one year three months up to two years (excluding 555 days), two years to less than three years, three years to less than five years, and five to ten years, settle at 6.25 percent for general clients and 6.75 percent for retirees.

Punjab National Bank Revises Rates Effective 1 November with 444-Day Peak
Punjab National Bank initiated its interest revisions slightly earlier, enforcing its fresh rates on 1 November 2026. Across its varied deposit tenures, PNB provides general retail customers with rates ranging from 3 percent to a peak of 6.60 percent. Senior citizens, by comparison, can access yields stretching up to 7.10 percent. The premier earning bracket at PNB is concentrated in its 444-day deposit tenure, positioning that timeframe as the most rewarding window for both general savers and retired individuals.

For short-term cash holdings, PNB pays 3 percent to general citizens and 3.5 percent to senior citizens for both 7 to 14 days and 15 to 45 days. The 46 to 90 days tenure provides 5.50 percent to regular depositors and 6 percent to elderly savers, expanding to 5.75 percent and 6.25 percent respectively on 91 to 179 days commitments. The broad intermediate windows of 180 to 270 days, 271 to 302 days, and 304 days to less than one year all pay 6 percent to general savers and 6.50 percent to senior citizens. An exception in that stretch is the standalone 303-day tenure, which dips slightly to provide 5.95 percent and 6.45 percent respectively.

PNB Intermediate and Long-Term Payout Details
Looking at annual commitments, an exact one-year deposit at Punjab National Bank yields 6.25 percent for general accounts and 6.75 percent for senior citizen depositors. Tenures exceeding one year up to 443 days offer 6.30 percent and 6.80 percent across the two groups. This leads into the 444-day peak tenure, which pays the bank's maximum return of 6.60 percent to regular investors and 7.10 percent to senior individuals.

Deposits placed from 445 days to 665 days revert to 6.30 percent for standard accounts and 6.80 percent for senior accounts. PNB provides another dedicated interest lift on its 666-day bucket, paying 6.50 percent to regular accounts and 7 percent to seniors. For periods between 667 days and two years, as well as beyond two years up to three years, the yields remain at 6.30 percent and 6.80 percent. Deposits lasting more than three years up to 1203 days, alongside placements from 1205 days to five years, generate 6.35 percent for standard depositors and 6.85 percent for elderly savers, with the specific 1204-day point offering 6.30 percent and 6.80 percent. Finally, long-term investments spanning five years to ten years deliver 6 percent to general depositors and 6.80 percent to senior citizens.

What this means for you
The revised fixed deposit interest rates from these state-owned banks directly benefit conservative retail depositors looking for guaranteed portfolio income.

• Retiree Income Enhancement: Senior citizens can lock in up to 7.25 percent annual interest through designated special tenures. This provides a dependable cash flow cushion for households reliant on fixed interest earnings.
• Retail Saver Returns: General depositors committing funds for intermediate durations can earn up to 6.75 percent without exposing capital to market risks. This offers an accessible method to build short-term financial reserves safely.
• Tenure Optimization: Depositors must deliberately choose specific maturities like 444 days, 555 days, or 666 days to secure the highest yields. Standard tenure buckets often carry yields that are 15 to 50 basis points lower than these promotional options.
• Deposit Threshold: The updated rates apply broadly to domestic retail deposits below the 3 crore rupee mark. Existing and new customers can open or renew deposits under the revised interest structure immediately.

Why this happened
State-run lenders adjust fixed deposit rates primarily to mobilize durable retail funding and manage liquidity requirements across varying maturity profiles. Offering premium yields on unique day counts helps banks secure deposits for predictable durations.

• Deposit Mobilization Needs: Banks require a steady stream of domestic deposits to support credit growth and maintain statutory liquidity reserves. Raising interest rates on popular retail buckets encourages individuals to deposit idle savings.
• Targeted Duration Strategy: Institutions utilize bespoke durations such as 444 days, 555 days, and 666 days to spread liability maturities across specific timelines. This mechanism avoids maturity bunching and stabilizes internal balance sheet management.
• Senior Citizen Preference: Older demographics represent a substantial portion of stable, long-duration term deposits across public sector banks. Offering a standard 50 basis point premium ensures retention of this reliable retail capital.

Questions & Answers

1. What is the maximum interest rate Canara Bank offers to senior citizens?
Canara Bank offers a peak interest rate of 7.25 percent to senior citizens on its 555-day special fixed deposit.

2. When did Canara Bank's revised interest rates take effect?
Canara Bank implemented its revised rates for domestic term deposits under 3 crore rupees on 2 November 2026.

3. Which tenure offers the highest return at Punjab National Bank?
The 444-day tenure provides the highest return at PNB, yielding 6.60 percent for regular savers and 7.10 percent for senior citizens.

4. From what date are Punjab National Bank's updated deposit rates effective?
Punjab National Bank brought its revised fixed deposit interest rates into effect on 1 November 2026.

5. What returns does Canara Bank offer on its 444-day fixed deposit?
Canara Bank offers 6.65 percent to general depositors and 7.15 percent to senior citizens on the 444-day tenure.

6. Does PNB offer a preferential interest rate on its 666-day tenure?
Yes, PNB pays 6.50 percent to regular depositors and 7 percent to senior citizens on the 666-day maturity.

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