Latest Punjab and Sind Bank FD Interest Rate April 2023
Punjab and Sind Bank Fixed Deposit (FD) rate ranges from 2.80% p.a. to 7.10% for the general public and 3.30% p.a to 7.60% p.a. for senior citizens. The Punjab and Sind Bank senior citizen interest FD rates are, in general, 0.50% higher than the interest rate for the general public. The deposit tenure ranges from 7 days to 10 years for a normal FD scheme.
Other fixed deposit schemes offered by Punjab and Sind Bank include the NRO and NRE, FCNR, RFC term deposits, PSB Nanhe Chaman Term Deposit scheme, PSB Grih Laxmi scheme, and the Punjab and Sind Bank Tax Saver Scheme that comes with a lock-in period of 5 years.
Punjab and Sind Bank FD Interest Rate Highlights
| Interest Rate | 2.80% – 7.60% |
| Tenure | 7 days – 10 years |
| Minimum Deposit | Rs.1 lakh (7 – 14 days ) |
| Maximum Deposit | No Upper Limit |
| Lock-in Period | Starting from 7 days (5 years for Tax Saver FD) |
How to Calculate Punjab and Sind Bank FD Interest Rate?
There are 2 ways to calculate the interest on FDs. Let’s explore both of these in detail:
1. Simple Interest Method
Simple interest is the interest earned on the principal amount that is invested for a predetermined period at a specific interest.
The formula for calculating simple interest is:
(P x R x T)/100, where:
- P is the Principal Amount Invested
- R is the Rate of Interest
- T is the Tenure for which the amount is invested
Lets understand this with the help of an example:
If you have invested Rs.1,00,000 for a tenure of 5 years at a simple interest rate of 5% per annum, here is how the calculation will look like:
P= Rs.1,00,000, R= 5%, T= 5 years
Thus, Simple Interest = (1,00,000 x 5 x 5)/100= Rs. 25,000
Therefore, the amount you will get upon maturity after 5 years =
Rs.1,00,000 + Rs. 25,000 = Rs. 1,25,000
2. Compounded Interest Method
Compound Interest is the interest earned on interest. For example, if your investment earns Rs.500 as interest in the first year with a principal investment of Rs.50,000, it will get reinvested in the next year. Thus, the investment corpus for the second year will be Rs.50,000 + Rs. 500, i.e, Rs.50,500. Now, if this corpus of Rs.50,500 earns an interest of Rs.550 in the second year, the interest (Rs.550) will get reinvested in the third year, making the corpus Rs.51,050. The interest will keep on getting reinvested for the entire investment period.
Following is the formula for calculating compound interest:
A = P (1+r/n) ^ (n * t), where
- A = Maturity Amount
- P = Principal amount invested
- r = Rate of Interest (in decimals)
- n = number of compounding in a year
- t = number of years
Let’s understand this calculation with the help of an example:
If you invest Rs. 2,00,000 at an interest rate of 5% per annum which is compounded quarterly for a period of 5 years, here is what the interest and maturity amount will look like:
P= Rs.2,00,000, R= 5, n= 4, t= 5 years
Thus,
A= 2,00,000 (1+5/4) ^ (4 x 5)
So, A (Maturity Amount)= Rs.2,56,407
Therefore, Interest = Maturity Amount – Principal Investment
= Rs. 2,56,407 – 2,00,000
= Rs. 56,407
Manual calculations can be time consuming. Alternatively, you can use Punjab and Sind Bank FD interest rates calculator to get quick and accurate results.
Factors that Affect Punjab and Sind Bank Fixed Deposit Interest Rate
Here are some of the factors that can have an impact on Punjab and Sind Bank FD rates:
1. FD Tenure
Interest rates on FD deposits vary based on how long you choose to stay invested in the product. A long-term FD generally has a better interest rate than a short-term FD.
2. Economic Factors
Any change in the monetary and fiscal policy of the nation impacts the interest rates applied to the fixed deposits issued by banks, including Punjab and Sind Bank. Economic conditions such as high inflation also indirectly impact the interest rates applicable to fixed deposits.
3. Age
Senior citizens are generally offered a higher interest rate ranging between 0.25% to 0.75% compared with the standard rate. Senior Citizens having an FD account with Punjab and Sind Bank can earn a 0.50% higher FD interest rate than the regular rate.
Punjab and Sind Bank FD Interest Rate for General Public
Punjab and Sind Bank offer different interest rates for term deposits based on the maturity period and the amount. Term deposits under Rs.2 crore offer an interest rate of up to 7.60% based on tenure. The following table presents PSB Bank FD rates for the general public for 2023.
| Tenure | Interest Rate on Deposits Less Than Rs. 2 Cr |
| 7 days to 14 days | 2.80% |
| 15 days to 30 days | 2.80% |
| 31 days to 45 days | 3.00% |
| 46 days to 90 days | 4.75% |
| 91 days to 120 days | 5.10% |
| 121 days to 150 days | 5.10% |
| 151 days to 179 days | 5.10% |
| 180 days to 269 days | 6.10% |
| 270 days to 364 days | 6.10% |
| 1 year to 399 days | 6.40% |
| 400 days | 7.10%* |
| 401 days to 600 days | 6.40% |
| 601 days | 7.00% |
| 602 days to 2 years | 6.40% |
| Above 2 years to < 3 years | 6.75% |
| 3 years to 5 years | 6.25% |
| > 5 years to 10 years | 6.25% |
**Note that the interest rates are subject to change without prior notice.
Punjab and Sind Bank FD Interest Rate for Senior Citizens
Senior citizens benefit from an additional interest rate of 0.50% over the standard FD rates of Punjab and Sind Bank on term deposits less than Rs.2 crore. This additional benefit is only valid for fixed deposits with a tenure of 180 days or more. The following table represents the Punjab and Sind Bank interest rates for senior citizens for different tenures.
| Tenure | Interest Rate on Deposits Less Than Rs. 2 Cr |
| 7 days to 14 days | 2.80% |
| 15 days to 30 days | 2.80% |
| 31 days to 45 days | 3.00% |
| 46 days to 90 days | 4.75% |
| 91 days to 120 days | 5.10% |
| 121 days to 150 days | 5.10% |
| 151 days to 179 days | 5.10% |
| 180 days to 269 days | 6.60% |
| 270 days to 364 days | 6.60% |
| 1 year to 399 days | 6.90% |
| 400 days | 7.60%* |
| 401 days to 600 days | 6.90% |
| 601 days | 7.50% |
| 602 days to 2 years | 6.90% |
| Above 2 years to < 3 years | 7.25% |
| 3 years to 5 years | 6.75% |
| > 5 years to 10 years | 6.75% |
**Note that the interest rates are subject to change without prior notice.
Punjab and Sind Bank FD Interest Rate for NRIs
Punjab and Sind Bank offers different term deposits for Non-Resident Indians (NRIs). Essentially, any NRI can deposit funds in these accounts for a tenure they chose and earn interest on it.
Following are the different types of Punjab and Sind Bank FD accounts:
- NRE Fixed Deposit Account
- NRO Fixed Deposit Account
- RFC Account
- FCNR Account
Also Read
Punjab and Sind Bank NRO FD Interest Rate
Non-Resident Ordinary or NRO is a term that refers to accounts held by NRIs. These accounts help NRIs manage their money in India while they reside outside the country. NRIs can use Punjab and Sind Bank NRO deposit accounts to manage their income in India. Punjab and Sind NRO FD interest rate is same as normal FD rate.
| Tenure | Interest Rate on Deposits Less Than Rs. 2 Cr |
| 7 days to 14 days | 2.80% |
| 15 days to 30 days | 2.80% |
| 31 days to 45 days | 3.00% |
| 46 days to 90 days | 4.75% |
| 91 days to 120 days | 5.10% |
| 121 days to 150 days | 5.10% |
| 151 days to 179 days | 5.10% |
| 180 days to 269 days | 6.10% |
| 270 days to 364 days | 6.10% |
| 1 year to 399 days | 6.40% |
| 400 days | 7.10%* |
| 401 days to 600 days | 6.40% |
| 601 days | 7.00% |
| 602 days to 2 years | 6.40% |
| Above 2 years to < 3 years | 6.75% |
| 3 years to 5 years | 6.25% |
| > 5 years to 10 years | 6.25% |
**Note that the interest rates are subject to change without prior notice.
Punjab and Sind Bank NRE FD Interest Rate
NRE or Non-Resident External is an account held by NRIs that allows them to hold their overseas income in India. The Punjab and Sind Bank FD allows NRIs to deposit their earnings in foreign currencies, which is converted to the Indian Rupee and helps them earn an interest of up to 6.75%. The following table presents Punjab and Sind Bank interest rates for NRE FDs in Punjab and Sind Bank.
| Maturity | Interest Rate on Term Deposits of Less than Rs. 2 Cr |
| 1 year to 2 years | 6.40% |
| Above 2 years – < 3 years | 6.75% |
| 3 years to 5 years | 6.25% |
Punjab and Sind Bank FCNR Interest Rate
FCNR, or Foreign Currency Non-Resident, allows NRIs to hold their earnings in foreign currencies in India. NRIs can deposit their earnings in any foreign currency in a Punjab and Sind Bank FCNR deposit account. The funds are then converted to Indian Rupee as per the exchange rate. FCNR account holders can earn up to 4.75% interest based on the tenure and the foreign currency being converted. The following table depicts the interest rates for different currencies and tenures.
| Tenure | Interest Rate (USD) | Interest Rate (EUR) | Interest Rate (GBP) | Interest Rate (CAD) | Interest Rate (AUD) |
| 1 year to less than 2 years | 4.75% | 0.50% | 3.75% | 4.25% | 2.50% |
| 2 years to less than 3 years | 3.25% | 0.15% | 2.25% | 3.00% | 2.00% |
| 3 years to less than 4 years | 2.80% | 0.15% | 2.20% | 2.75% | 1.80% |
| 4 years to less than 5 years | 2.70% | 0.15% | 2.20% | 2.50% | 1.80% |
| 5 years only | 2.60% | 0.15% | 2.20% | 2.50% | 1.80% |
Punjab and Sind Bank RFC Interest Rate
Punjab and Sind Bank RFC or Resident Foreign Currency Account allows resident Indians who have come from a foreign country to maintain their foreign earnings in India. RFC term deposits in Punjab and Sind Bank can be opened in US Dollar, Euro, or British Pound. The RFC term deposit account can be opened for a minimum tenure of 1 year and a maximum tenure of 3 years and offers an interest rate of up to 2.39%. The following table depicts the interest rate for Punjab and Sind Bank RFC.
| Tenure | Euro | USD | GBP |
| 1 year to less than 2 years | 0.07% | 1.53% | 1.89% |
| 2 years to less than 3 years | 0.27% | 1.93% | 2.24% |
| 3 years | 0.42% | 2.18% | 2.39% |
Punjab and Sind Bank Vs Other Banks’ FD Interest Rates
Following is a comparison between the FD interest rates for Punjab and Sind Bank and other banks in India. The upper limit includes the additional interest rate benefit senior citizens get on FDs.
| Bank Name | Interest Rate |
| SBI Fixed Deposit | 3% to 7.50% |
| HDFC Fixed Deposit | 3% to 7.75% |
| ICICI Fixed Deposit | 3% to 7.60% |
| Axis Bank Fixed Deposit | 3% to 7.26% |
| IndusInd Fixed Deposit | 3.50% to 8.25% |
| Bank of Baroda Fixed Deposit | 3% to 7.55% |
| Bank of India Fixed Deposit | 3% to 7.80% |
| Punjab and Sind Bank Fixed Deposit | 2.80% – 7.60% |
| Union Bank Fixed Deposit | 3% to 8.05% |
| Central Bank of India Fixed Deposit | 4% – 6.75% |
| Canara Bank Fixed Deposit | 4% – 7.75%* |
| Kotak Bank Fixed Deposit | 2.75% to 7.70% |
| IDFC Bank Fixed Deposit | 3.50% to 8.25% |
| Yes Bank Fixed Deposit | 3.25% to 8.25% |
| Post Office Fixed Deposit/Time Deposit | 6.6% to 7% |
| Bandhan Bank Fixed Deposit | 3.75% to 8.50% |
Features and Benefits of Punjab and Sind Bank Fixed Deposit
Following are some of the benefits of having a fixed deposit in Punjab and Sind Bank:
- Minimum tenure of 7 days (5 years for tax saver FD)
- No upper limit on the deposit amount
- Competitive interest rates
- Special interest rates for senior citizens and ex-Punjab and Sind Bank employees
- FD accounts can be opened individually or jointly, account holders can also make nominees
- An FD in Punjab and Sind Bank can be opened offline and online
- Claim tax benefits of up to Rs.1.5 lakh under Section 80C of the Income Tax Act with the tax-saver FD scheme
Different Types of Punjab and Sind Bank FD Schemes
Punjab and Sind Bank offers different fixed deposit schemes for Indian residents, NRIs, senior citizens, and even minors. Here are some of the FDs offered by Punjab and Sind Bank:
- PSB Fixed Deposit
- PSB Tax Saver
- PSB Nanhe Chaman Term Deposit
- PSB Grih Lakshmi Fixed Deposit Scheme
- PSB Special Rate for Special Days
1. PSB Fixed Deposit
- Minimum Deposit: Rs.1,00,000
- Maximum Deposit: No upper limit
- Tenure: 7 days to 10 years
- Interest Rate: 2.80% to 7.60%
- Eligibility Criteria: Indian Resident
2. PSB Tax Saver
- Minimum Deposit: Rs.1,00,000
- Maximum Deposit: No upper limit
- Lock-in Period: 5 years
- Interest Rate: 6.25% for General Public, 6.75% for Senior Citizens
- Eligibility Criteria: Indian Resident
3. PSB Nanhe Chaman Term Deposit
- Minimum Deposit:
- For Fixed Deposits: Rs.1,500 and in multiples of Rs.500
- For Recurring Deposits: Rs.500 and in multiples of Rs.100
- Maximum Deposit: Rs.1.5 crore
- Tenure: 60 months or 120 months
- Interest Rate:
- For 60 months: 0.25% in addition to the Standard Rate
- For 120 months: 0.50% in addition to the Standard Rate
- Eligibility Criteria: Account can be opened and maintained by the Guardian for a new-born child up to the age of 12 months.
4. PSB Grih Lakshmi Fixed Deposit Scheme
- Minimum Deposit: Rs.5,000 and in multiples of Rs.1,000
- Maximum Deposit: Rs.1.5 crore
- Tenure: 551 days (Scheme Valid up to 23rd June, 2023)
- Interest Rate: As per the Term Deposit Interest Rates with additional 0.25% thereupon
- Eligibility Criteria: Resident woman individuals (including minors). For joint accounts, the first account holder must be a woman
5. PSB Special Rate for Special Days
- Minimum Deposit: Rs.25,000 and in multiples of Rs.5,000
- Maximum Deposit: Rs.1.5 crore
- Tenure: 1051 days (up to 23rd June, 2023)
- Interest Rate: As per the Term Deposit Interest Rates with additional 0.25% thereupon
- Eligibility Criteria: Resident individuals (including minors), non-individuals like Hindu Undivided Families, Sole Proprietorship Firms, Partnership Firms, Companies, and Associations of Persons, etc.
How to Invest in Punjab and Sind Bank Fixed Deposit?
Follow these steps to open a Punjab and Sind Bank Fixed Deposit:
- Step 1: Go to Punjab and Sind Bank netbanking
- Step 2: Login with your credentials
- Step 3: Go to FD and select FD tenure and maturity period
- Step 4: You can also select auto-renewal if you want to re-invest
- Step 5: Once done, accept the terms and conditions and click on ‘Submit’
Alternatively, you can also open an account by visiting your nearest PSB branch.
Documents Required to Open Punjab and Sind Bank FD
To open a Punjab and Sind Bank FD, you will need the following documents:
- Duly filled FD application form
- PAN card or Form 60
- Documents supporting your profession/ nature of business or financial status
- Any one of the following documents for KYC:
- Aadhaar Card
- Driving Licence
- Passport
- Voter ID Card
- NREGA Job Card
- National Population Register Card
Taxation on Punjab and Sind Bank FD
- The interest earned on FDs is considered as “income from other sources” and is subject to taxation as per the individual’s income tax slab.
- Banks are required to deduct TDS every year on the interest earned on FDs if the interest amount exceeds Rs.40,000 per financial year (Rs.50,000 for senior citizens).
- If an individual withdraws their FD before the maturity date, the interest earned on such premature withdrawal is also subject to taxation as per their income tax slab.
- Form 15G/15H can be submitted by the depositor for exemption from tax deduction as per IT Rules.
However, if you have a tax-saving FD account with Punjab and Sind Bank, you can claim tax deduction benefits of up to Rs.1.5 lakh under Section 80C of the Income Tax Act. Note that Punjab and Sind Bank tax saving FD has a lock-in period of 5 years.
Loan Against Punjab and Sind Bank FD Scheme
Punjab and Sind Bank doesn’t offer loans against FD. However, the bank offers another scheme – PSB SB OD, which is an overdraft facility that customers can apply for against their savings account to meet immediate financial requirements. The quantum of loan is equivalent to up to two months’ of net salary of the applicant.
Final Word
There are several fixed deposit schemes offered by Punjab and Sind Bank. Hence, make sure you go through the fine print of the schemes in detail before investing your money. Punjab and Sind Bank offers an advantage to senior citizens with an additional 0.50% interest on FDs that have a tenure of 180+ days.
Fixed deposits are one of the safest and most conventional investment types. However, if you want to beat market inflation and make sure your savings are not losing value over time, investing in a mutual fund can be beneficial. Check out Navi’s mutual fund schemes that have the potential to offer handsome returns and help you plan your future better!
FAQs
The minimum deposit required to open a Punjab and Sind Bank fixed deposit account is Rs.1 lakh. There’s no upper limit to the deposit amount. However, do note that any deposit of more than Rs. 2 crore is considered as bulk deposits and the interest rates are usually lower for bulk deposits.
FD rates in Punjab and Sind Bank are at 7.10% (for general depositors excluding senior citizens) for any deposit made for 1 year. So, if you have invested Rs.1 lakh for a maturity period of 1 year, your estimated returns would be Rs.7,336 (compounded monthly). So, the total amount you would receive upon maturity would be Rs.1,07,336.
If your income is below the taxable limit, you would receive FD interest in its entirety without TDS. However, you will have to file either Form 15G or 15H depending on your age. A senior citizen must file Form 15G. On the other hand, other individual taxpayers must file Form 15H.
Punjab and Sind Bank offers separate time deposits or FD accounts for NRIs. These include – NRE, FCNR and RFC accounts. Each account serves a specific purpose and the returns also vary depending on that.
You can get tax deduction benefits up to Rs. 1.5 lakh under Section 80C of the IT act only on Punjab and Sind Bank tax-saving scheme. However, the lock-in period is 5 years, meaning you cannot withdraw the amount before the maturity period of 5 years.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
