Fixed Deposits (FDs) continue to be one of the most trusted investment options for millions of Indians. People who want safe and guaranteed returns often choose FDs over other investment products because they offer stability and lower risk. Public sector banks, in particular, enjoy a high level of trust among investors due to their strong government backing and long-standing reputation.
Many people planning to invest their savings for the next two years often compare interest rates offered by major public sector banks before making a decision. Recently, Punjab National Bank (PNB) revised its fixed deposit interest rates, prompting investors to compare the latest FD offerings from three of India's largest public sector banks—State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank.
While interest rates are important, investors should also consider factors such as safety, service quality, liquidity, and penalties for premature withdrawal. However, when looking purely at returns on a two-year fixed deposit, PNB currently has a slight advantage over its competitors.
Fixed deposits are particularly popular among retirees, conservative investors, and individuals looking for predictable returns. Since FD rates can change from time to time, it is always useful to check the latest rates before investing.
The latest comparison shows that all three banks are offering attractive returns, but there are small differences that could make a noticeable impact on earnings, especially for larger investments.
ALSO READ: Singapore blocks online content targeting Indians to protect racial harmony
ALSO READ: Influencer’s missing dog was stolen, sold and killed despite ₹1.4 lakh reward offer
According to the latest available rates for deposits below Rs 3 crore, SBI, PNB, and Canara Bank offer different interest rates for similar deposit periods.
State Bank of India (SBI)
SBI, the country's largest public sector bank, is currently offering an annual interest rate of 6.25 per cent to general customers for fixed deposits with a tenure of around two years. Senior citizens receive a slightly higher interest rate of 6.75 per cent.
Because of its extensive branch network and strong customer base, SBI remains one of the most preferred banking choices for FD investors. Many customers value the bank's reliability and nationwide accessibility.
Punjab National Bank (PNB)
Punjab National Bank revised its FD rates in June 2026 and is now offering 6.30 per cent annual interest to general citizens for deposits ranging from 667 days to two years.
Senior citizens receive 6.80 per cent interest, while super senior citizens are eligible for an even higher rate of 7.10 per cent.
Among the three banks being compared, PNB currently provides the highest return for a two-year fixed deposit. Although the difference may seem small, even a slight increase in interest rates can result in better earnings over time, particularly for large deposits.
For investors focused primarily on maximizing returns while staying with a public sector bank, PNB currently appears to be the most attractive option in this category.
Canara Bank
Canara Bank offers an annual interest rate of 6.25 per cent to general customers for fixed deposits with a tenure of two years and above but less than three years.
Senior citizens are offered 6.76 per cent interest, which is slightly higher than SBI's senior citizen rate but lower than PNB's.
Canara Bank continues to attract customers with its competitive rates and strong presence across the country. While its general customer rate matches SBI's, its senior citizen rate is marginally better.
When comparing the three banks, PNB stands at the top in terms of interest rates, followed closely by Canara Bank and SBI.
Although higher interest rates are attractive, experts advise investors not to make decisions based solely on returns.
One important factor is the treatment of senior citizens and super senior citizens. Many banks provide additional interest benefits to older customers, which can significantly improve overall returns.
Investors should also understand the penalties associated with premature withdrawal. If an FD is broken before maturity, banks may reduce the interest payable and impose additional charges.
Another point worth checking is whether the bank offers different interest rates for online and offline deposits. Some banks provide slightly higher rates for deposits booked through internet banking or mobile banking platforms.
Customers should also consider convenience factors such as branch availability, digital banking facilities, customer service quality, and ease of managing deposits.
For long-term investors, financial stability and trust in the institution are equally important. Public sector banks generally enjoy strong confidence among customers because of their government ownership and established track record.
In summary, the latest comparison shows that Punjab National Bank currently offers the highest interest rate on two-year fixed deposits among SBI, PNB, and Canara Bank. General customers can earn 6.30 per cent annually, while senior citizens can receive 6.80 per cent. Super senior citizens are offered an even more attractive rate of 7.10 per cent.
SBI and Canara Bank remain strong alternatives, offering competitive rates along with their own advantages in terms of customer reach and banking services. Before investing, customers should carefully evaluate their financial goals, compare all available features, and choose the option that best suits their needs.
Copyright © © 2022 Copyright. All Rights Reserved with Arth Parkash