The bank, Punjab and Sind Bank, has been around for more than 100 years. It was established in 1908 by Bhai Vir Singh, Sir Sunder Singh Majitha, and Sardar Tarlochan Singh with the purpose of working to help the weaker sections of the society. The bank was nationalised in the year 1980 and by the 1960s the bank had already established a branch in London.
Today 81.4% of the bank is owned by the government and it conducts its operations through an impressive network of over 1000 branches, most of which are in Punjab itself. Ever since the year 2004 the bank has also been displaying a steady growth with profits rising every year. The bank is even the sponsor of the Setluj Gramin Bank.
Among the many services that it provides to its customers are fixed deposits that are meant to help customers invest their money in a safe environment and watch it grow without having to worry about the ups and downs of the economy.
Different Term Deposits Offered By PSB
- Fixed Deposit scheme Ordinary
- Saving with Smile Deposit scheme
- Short Term Deposit scheme
- Capital Gain Deposit scheme
- PSB Fixed Deposit Tax Saver scheme
Features Of PSB Fixed Deposit Scheme Ordinary
- Maturity range: 15 days to 10 years
- Range of PSB FD rates: 4.00% p.a. to 7.00% p.a.
- Joint accounts are permitted
- Higher interest rates i.e. 0.50% higher rates to senior citizens for:
- Deposits to Rs.1 crore
- Tenure: 6 months and above
- Quarterly interest payout
- 7-day tenure permitted for deposits of Rs.1 lakh and above
Features of PSB Saving with Smile Deposit scheme
- Interest is calculated at quarterly rests as Compound Interest
- Interest paid upon FD maturity
- Reinvestment scheme
- Tenure bracket: 3 years to 10 years
Features of PSB Short Term Deposit scheme
- Period of deposit: 6 months to 3 years
- Deposit held for a short period of time
- Interest is compounded
Features of PSB Capital Gain Deposit scheme
- Exemptions on Capital Gains if:
- Capital Gains is invested in a public bank
- Deposit should be made before or on the date of filing income tax return
- Senior Citizens, PSB employees or former PSB employees not eligible for special interest rates
Features of PSB Tax Saver FD scheme
- Deposits under this scheme are qualified for tax deductions as per Section 80C of the Income Tax Act, 1961.
- Range of Fixed Deposits: Rs.100 to Rs.1.50 lakh
- Nomination available
- Transferrable deposits (within PSB branches only)
- Rate of Tax Saver rate: 6.55% p.a.
- Premature withdrawals not permitted before completing the 5-year tenure
PSD Term Deposit interest rates*: Below Rs.1 crore
|
7 days to 14 days**
|
4.00
|
4.00
|
|
15 days to 1 month
|
4.00
|
4.00
|
|
Above 1 month to 45 days
|
4.00
|
4.00
|
|
Above 45 days to 3 months
|
5.50
|
5.50
|
|
Above 3 months to 4 months
|
5.75
|
5.75
|
|
Above 4 months to 5 months
|
6.00
|
6.00
|
|
Above 5 months to 6 months
|
5.85
|
5.85
|
|
Above 6 months to 9 months
|
6.40
|
6.90
|
|
Above 9 months to 12 months
|
6.40
|
6.90
|
|
12 months to 24 months
|
7.00
|
7.50
|
|
Above 24 months to 36 months
|
6.80
|
7.30
|
|
36 months to 60 months
|
6.55
|
7.15
|
|
Above 60 months to 120 months
|
6.55
|
7.15
|
*The PSB FD interest rates tend to change at the discretion of the bank. The interest rates mentioned in this table are effective as of 10 January 2020.
**Applicable for deposits worth Rs.1 lakh and above
Who is qualified to apply for PSB FD scheme?
- Any individual who is a citizen of India
- Members of the Hindu Undivided Family (HUF)
- Minors can open the account under the guardianship of their legal/natural guardian
- Corporates
- Trust Accounts
- Associations
What are the documents needed for the application?
- Valid identity proof
- Valid address proof
- Permanent Account Number (PAN) card
- Colour passport-size photographs
FAQs about the PSB Fixed Deposit scheme
- What is the maximum interest rate available for PSB FD scheme?
The highest FD rate for PSB Fixed Deposit is 7.00% p.a. for a tenure bracket between 1 year and 2 years.
- What is the tenure range available for the PSB Term Deposit scheme?
The tenure band offered by PSB for the FD scheme is 15 days to 10 years. Minimum tenure of 7 days available for deposits of Rs.1 lakh and above.
- Do senior citizens get special interest rates on the PSB Tax Saver FD scheme?
Yes, senior citizens are eligible for a 0.50% higher interest rate on the PSB Tax Saver Deposit scheme i.e. 7.05%.
- What is the range of maturity for PSB Short Term Deposit scheme?
The PSB Short Term Deposits come with a maturity band of 6 months to 3 years.
- How is the interest calculated for PSB Saving with Smile Deposit scheme?
For this variant of Term Deposit, the interest is calculated as Compound Interest.
