444-Day Senior Citizen FD: PNB, Central Bank of India and IOB Compared for Savers

Punjab National Bank (PNB), Central Bank of India and Indian Overseas Bank (IOB) are each offering special fixed deposit rates to senior citizens on a 444-day tenure, according to reporting by ET Now. For savers aged 60 and above, the question is which of the three pays the most on that specific tenure.

The exact rates are in the ET Now report and on each bank's own website. Banks can revise them at short notice, so confirm the live rate before you book. What decides your actual return is not only the headline rate but also the payout option, the tax on the interest and how much you keep with any one bank.

This article explains how special-tenure deposits work, runs the arithmetic on an illustrative ₹10 lakh deposit, and gives a checklist to run before you book. It does not quote the three banks' rates, because those are best read from the source and from the banks directly.

Key takeaways

• The 444-day tenure is a special-scheme tenure. Banks use such odd tenures to offer a better rate than their regular slabs for a limited time.
• Senior citizens usually get an extra rate on top of the standard card rate, and the three banks' senior rates on this tenure are the subject of the ET Now comparison.
• On ₹10 lakh for 444 days, each 0.25 percentage point of rate difference is worth roughly ₹3,000 over the whole term.
• Interest is taxable. For senior citizens, TDS generally applies once interest at one bank exceeds ₹1 lakh in a financial year, and Form 15H can be used if your total income is below the taxable limit.
• Deposit insurance covers up to ₹5 lakh per depositor per bank, including interest, so large sums are safer when spread across banks.
• Check the live rate, the payout option and the premature-withdrawal terms on the bank's site or at the branch before booking.

What the 444-day senior citizen FD offers

A fixed deposit locks your money with a bank for a fixed period at a rate agreed on the day you book. A 444-day deposit runs about 14 months and 25 days, slightly longer than a year. Banks price tenures like this on purpose. Instead of raising the rate on their regular one-year or two-year slabs, which would reprice their whole deposit book, they launch a narrow special tenure that pulls in fresh money at a higher rate.

Senior citizens, meaning resident individuals aged 60 and above, normally receive an additional rate over the general public. That extra is commonly about half a percentage point on regular tenures, though each bank sets its own. On special schemes the treatment varies, and some schemes carry an end date. ET Now's comparison puts PNB, Central Bank of India and IOB side by side on this one tenure, which is useful because the ranking of banks often differs from tenure to tenure.

Because these are special schemes, three things are worth remembering:

• The rate is fixed at booking. A later cut does not affect your deposit, and a later rise does not help it.
• A scheme may close on a set date or when the bank's target is reached.
• Terms such as minimum amount, payout frequency and early-exit penalty can differ from the bank's regular FDs.

How to compare PNB, Central Bank of India and IOB

The simplest mistake is to compare a headline number and stop. Two rates that look identical can pay you differently depending on how the interest is credited. Here is a short checklist for a fair comparison:

1. Read the senior citizen rate for exactly 444 days. Do not use the rate for a nearby tenure, and confirm it applies to the amount you plan to deposit.
2. Note the payout option. Cumulative deposits compound, usually quarterly, and pay everything at maturity. Monthly or quarterly payout deposits pay interest out along the way and end with a lower maturity value on the same nominal rate.
3. Check whether the rate is for a new deposit only. Some special rates do not apply on renewals, or apply only to deposits below a certain size.
4. Read the early-withdrawal terms. Banks generally charge a penalty, often a fraction of a percentage point, on the rate applicable for the period the money actually stayed. Confirm the exact figure.
5. Consider where you already bank. An account you already hold saves you fresh KYC and gives you an easy way to book online.

You can also compare the results against the wider market in our interest rate tables, which help you judge whether a special tenure is genuinely ahead of the ordinary FD curve or only marginally better.

What a 444-day FD earns: a worked example

The table below uses hypothetical rates purely to show the arithmetic. They are not the rates of any of the three banks. It assumes ₹10 lakh deposited for 444 days as a cumulative FD with quarterly compounding, which is how many Indian banks calculate cumulative deposits. Actual maturity values vary slightly with each bank's day-count method.

Illustrative rate (p.a.)	Approx. interest over 444 days	Approx. maturity value
6.50%	₹81,600	₹10,81,600
7.00%	₹88,100	₹10,88,100
7.50%	₹94,600	₹10,94,600

Read the table like this: moving from 6.50% to 7.00% adds about ₹6,500 over the term, and each 0.25 point is worth about ₹3,000. If one of the three banks pays a quarter point more than another on this tenure, that is the size of the prize on ₹10 lakh. On ₹5 lakh it is about half of that.

Now the payout question. Suppose you need income rather than a lump sum. A quarterly-payout deposit at 7.00% on ₹10 lakh would pay out interest of a little under ₹17,500 every quarter and return only the ₹10 lakh at the end. You get the cash flow, but your total interest is lower than the cumulative figure above, because none of it compounds. If you do not need the cash, choose cumulative. If you do, compare payout-option rates rather than the cumulative headline, since banks sometimes quote a lower rate for payout options.

Tax on senior citizen FD interest

FD interest is added to your income and taxed at your slab rate. The bank deducts tax at source (TDS) if the interest it pays you crosses a threshold in a financial year. For senior citizens that threshold is currently ₹1 lakh per bank under the rules as we understand them, against a lower figure for others. Check the current limit with the bank or in the Income Tax Department's guidance, as it has been revised in recent years.

Several points matter for a 444-day deposit:

• Interest accrues by financial year. A cumulative FD that matures 444 days later straddles at least two financial years, and the bank usually reports accrued interest each year for TDS purposes, even though you receive the money only at maturity.
• Form 15H can be submitted by eligible seniors whose total tax liability is nil, so that no TDS is cut. It has to be filed each financial year.
• No TDS does not mean no tax. If your income is above the taxable limit, you still owe tax on the interest when you file your return.
• Under the old tax regime, seniors can claim a deduction on interest from deposits under Section 80TTB, up to ₹50,000. That deduction is generally not available under the new regime.

When you compare the three banks, compare after-tax outcomes. For someone in the 20 or 30 per cent slab, a 7.00% FD is worth about 5.6% or 4.9% after tax, which is worth remembering before deciding how much to place in an FD versus other options.

Safety and deposit insurance limits

PNB, Central Bank of India and IOB are all public sector banks, and the Reserve Bank of India regulates them. Deposits in each are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor per bank, which combines principal and interest across all your accounts in that bank, in the same capacity.

This matters for planning. Suppose you have ₹15 lakh to place. Putting all of it in one bank means that, in the very unlikely event the bank failed, only ₹5 lakh would be insured. Placing ₹4.5 lakh in each of three banks keeps each balance under the limit even after interest is added, since ₹4.5 lakh growing at about 7% for 444 days becomes roughly ₹4.9 lakh. Public sector banks carry a very low risk of failure in practice, so this is an added layer of protection, not a reason to panic.

Who should book and who should wait

A special 444-day FD suits some savers better than others.

It makes sense if:

• You have money maturing soon and will not need it for about fourteen months.
• You want a fixed, known return with no market risk.
• The senior rate at one of these banks is clearly above what your current bank offers on a similar tenure.

Consider waiting or looking elsewhere if:

• You may need the money within a year. A premature withdrawal will cost you part of the rate.
• You hold an older FD at a higher rate that has not yet matured.
• You need money that keeps pace with inflation over many years, where a 14-month lock-in is only part of a wider plan.

Ratings, service and convenience also count. For seniors, a branch nearby, a nominee already registered and comfortable online access can be worth more than a small difference in rate.

Common mistakes to avoid

• Chasing the top rate and ignoring the payout. A higher rate on a payout option that you do not need is not a win.
• Breaking an existing FD for a marginal gain. Penalty and lost interest can easily exceed a quarter point's benefit.
• Overshooting the insurance limit. Put large sums in more than one bank when you can.
• Forgetting Form 15H. Without it, TDS may be deducted even when your total income is below the taxable limit, and you would need to claim it back.
• Missing the nominee. Add a nominee at booking, and consider a joint deposit with either-or-survivor terms for a spouse.
• Assuming the scheme lasts. Special rates can be withdrawn without much notice, so decide promptly once you have compared.

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Frequently asked questions

Which bank offers the highest rate on a 444-day FD for senior citizens?

The ET Now report compares PNB, Central Bank of India and IOB on this tenure, and the ranking sits in that report. Rates change, so confirm the current senior citizen rate with each bank before you book.

Is a 444-day FD better than a one-year FD?

Not automatically. A special tenure is often priced higher than the regular slabs around it, but that is not guaranteed, so compare the two rates for your amount. The extra two and a half months of lock-in is the trade-off.

Can I withdraw a 444-day FD before it matures?

Most banks allow premature withdrawal, generally with a penalty on the rate. Some special schemes have their own conditions, so read the terms before you book.

Is the interest on a senior citizen FD taxable?

Yes, it is added to your income and taxed at your slab rate. Banks deduct TDS once interest at that bank crosses the threshold for the year, and eligible seniors with no tax liability can submit Form 15H to avoid it.

How much of my FD is insured?

DICGC insures up to ₹5 lakh per depositor per bank, including principal and interest. Spreading larger amounts across banks keeps each balance within the cover.