FD Auto-Renewal Trap: ₹9,000/Year Slipping Away?

PNB, Canara Bank, and Bank of India have raised FD rates — senior citizens can now earn up to 7.25%. But if your FD auto-renews at the old rate, you silently lose thousands. Here is what to check right now.

Here's what happened: PNB and Canara Bank revised fixed deposit interest rates effective November 2026, with senior citizens eligible to earn up to 7.25% per annum on select tenures.. Bank of India also updated its FD rates recently, making this a broad public-sector rate revision rather than a one-bank move.. General (non-senior) depositors can earn up to approximately 7.00% on specific tenures across these banks, a meaningful jump from rates offered earlier in 2026..

What you should do: Log into net banking or visit your branch today and check the exact maturity date and auto-renewal rate of every existing FD — do not assume it renewed at the new higher rate.. If your FD is within 30 days of maturity or already auto-renewed at an older rate, ask your bank to prematurely close and re-book at the revised rate — the penalty (usually 0.50–1%) is often smaller than the gain from the higher rate.. If you are repaying a personal loan above 12% interest, compare whether breaking a low-rate FD and using the proceeds to part-prepay your loan saves you more than the FD earns — in most cases above 13% loan rates, it does..

Senior citizens: always book FDs in the 1–2 year bucket specifically — that is where the 7.25% rate typically sits. Longer or shorter tenures often pay 25–50 bps less.