Fixed deposits remain a preferred choice for Indian savers prioritizing capital safety and guaranteed returns on their hard-earned money. Public sector banks continue to command strong trust among both salaried professionals and retirees, who often favor these state-run institutions for their long-term deposits. Following the revisions implemented by Punjab National Bank in early June 2026, the yields across two-year deposit tenures have undergone a noticeable shift. For savers evaluating where to allocate lump-sum funds across three major public lenders, State Bank of India, Punjab National Bank, and Canara Bank, a detailed look at the current numbers outlines how each bank stands.
Retail Deposit Rates for Tenures Under Three Crore Rupees
According to figures recorded for June 2026, the three state-owned lenders have framed distinct annual interest rate structures for retail term deposits valued under 3 crore rupees. The offerings differentiate between regular depositors and older account holders across tenures centered around the two-year mark.
State Bank of India Term Deposits
State Bank of India, the largest public lender in the country, provides an interest rate of 6.25 percent per annum to regular citizens on deposits maturing between 2 years and less than 3 years. Senior citizens placing funds in this bracket receive an annual yield of 6.75 percent.
Punjab National Bank Revised Tariffs
Under the revised schedules effective from June 1, 2026, Punjab National Bank offers general customers an interest rate of 6.30 percent on term deposits lasting from 667 days up to 2 years. Senior citizens placing funds across this same window earn 6.80 percent annually. Additionally, the bank extends a special rate of 7.10 percent per annum for super senior citizens.
Canara Bank Term Returns
Canara Bank offers regular depositors an annual return of 6.25 percent on pure tenures spanning from 2 years up to less than 3 years. For senior citizen accounts, the bank provides an interest rate of 6.76 percent for the identical time frame.
Yield Differences and Key Considerations for Depositors
When evaluated strictly on published percentages, Punjab National Bank delivers a slightly higher return for a two-year investment compared to State Bank of India and Canara Bank. Within the senior citizen tier, Canara Bank edges past State Bank of India by one basis point, offering 6.76 percent against 6.75 percent, while Punjab National Bank maintains the highest payout among the three.
Depositors must consider several practical elements beyond headline rates before finalizing their choice of bank. Verifying exact terms for super senior citizens can unlock higher returns where applicable. Furthermore, depositors should examine premature withdrawal penalties, which apply if liquidity needs force an early exit. Potential variations between online and offline fixed deposit applications should also be assessed before booking the deposit.
