Even today, millions of Indian investors consider fixed deposits (FDs) the most reliable option for safe, guaranteed returns. Especially when it comes to public sector banks, everyone from senior citizens to working professionals prefers to deposit their hard-earned money in their lockers. Punjab National Bank (PNB) recently revised its interest rates for the first time in June 2026, changing the entire FD equation. If you’re thinking of investing your savings for the next two years and are wondering which of the country’s three largest public sector banks – State Bank of India, Punjab National Bank, and Canara Bank- will offer the highest interest rate, this news is for you.
Latest bank interest rates on 2-year FDs
As per the latest data for June 2026, the annual interest rates available to customers in this bucket (less than Rs 3 crore) are as follows:
State Bank of India (SBI): The country’s largest public sector bank is offering an annual interest rate of 6.25 per cent to general citizens and 6.75 per cent to senior citizens on FDs with maturities of 2 years or less.
Punjab National Bank (PNB): Under the new rates effective June 1, 2026, PNB is offering 6.30 per cent to the general public and 6.80 per cent to senior citizens on FDs ranging from 667 days to 2 years. (Super senior citizens will get 7.10 per cent here).
Canara Bank: For tenures of 2 years and above to less than 3 years, Canara Bank is offering an interest rate of 6.25 per cent to general citizens and 6.76 per cent to senior citizens.
Considering interest rates alone, PNB currently offers slightly better returns on 2-year FDs than SBI and Canara Bank. However, investment decisions should be made not solely on interest rates but also on the bank’s reliability, convenience, and your financial needs.
Things to keep in mind before investing
- Check out the separate interest rates for very senior citizens.
- Understand the charges levied on premature FD breakage.
- There may be a difference between online and offline FD rates.
