State Bank of Patiala was founded by Late His Highness Bhupinder Singh, Maharaja of the Patiala state in the year 1917. The bank was known as ‘Patiala State Bank’. It was state owned and the main purpose of fostering growth of agriculture, trade and industry. After the Patiala and east Punjab States Union was formed in 1948, the Reserve Bank of India took control of the bank.
The bank then became a subsidiary of State Bank of India on 1st April, 1960 and was named as State Bank of Patiala. On 8th August, 2005, it became a fully networked Public Sector Bank.Term Deposits of State Bank of Patiala
State Bank of Patiala provides term deposits to individuals or undivided family for a period of 5 years. The corporate and institutions also get a term insurance for a period ranging from 7 days to 3 years. State Bank of Patiala offers attractive interest rates and a steady income and compounded interest on the investments.
Eligibility - Who can open a term deposit account with SBP?
Term deposit accounts can be opened by individuals, partnership firms, private and public sector companies, Hindu undivided families or specified associates.
What term deposit Schemes does State Bank of Patiala offer?
The bank offers the following term insurance:
NRE and FCNR accounts can be opened jointly with a close relative.
What is the minimum amount required to open term deposit account with SBP?
The minimum amount required to open a term deposit is Rs.100.
What is the maximum amount that can be deposited in State Bank of Patiala term deposit account?
The maximum deposit amount that can be deposited in SBP is Rs.1,50,000.
What is the minimum / maximum period for which funds can be held in as term deposits with SBP?
The minimum period for which a person can hold a term deposit is 7 days. The maximum period for which a term deposit can be held is 5 years..
What is the procedure to open a term deposit account at State Bank of Patiala?
You have to approach one of the branches of State Bank of Patiala to open a term deposit account. The bank will first verify the identity of the person and source of income. If there is any doubt arising the bank will then seek KYC documents. Apart from that, PAN card and declaration in Form no. 60 or 61 as per the Income Tax Act is acquired from the depositor.
What are the interest rates offered on SBP term deposits?
For 7 days scheme opted, you get a 6.50% of interest rate. For 5 years scheme, the interest rate offered by SBP is 8.25% for general public and 8.65% for senior citizens.
Does State Bank of Patiala offer tax saver term deposits?
Yes, the State Bank of Patiala offers a Tax Saving deposit scheme. The tax benefits and deductions are available under Section 80C of the Income Tax Act, 1961.
Are term deposit accounts with SBP taxable?
Tax is deducted at source at the rate specified by the Income Tax authority. A TDS certificate will be issued by the bank for the tax deducted.
What are the main features of SBP term deposit schemes?
Premature withdrawals are allowed subject to a certain penalty as prescribed by the bank. If the policy was with the bank for less than 15 days, no interest will be paid.
Deposits are renewed by the bank automatically or on request. Interest on overdue deposit is paid if the deposit is renewed.
The scheme lets you hold term deposits for a period of 7 days to 5 years.
Are loans provided against term deposits at State Bank of Patiala?
Against Corporate Liquid Term Deposits, no loans are provided to the depositor. But under the SBP Tax Saving Term Deposit scheme, the bank considers loan applications against the scheme. Bank also considers loan against a term deposit in the minor’s name.
Does SBP offer senior citizens special rates on their term deposits?
Yes, the bank gives a 8.65% rate of interest on the term deposits accounts of the senior citizens.
Does SBP allow premature withdrawal and renewal of the term deposit?
The bank allows you to withdraw the deposit before its term completion based on the terms set while taking the policy. In an event of death, the policy’s premature termination is allowed.
The bank lets the depositor renew the policy before the term period at the appropriate rate on the date of renewal. A penalty will be charged for the premature closing of the deposit account.
Can NRIs open a term deposit account with State Bank of Patiala?
Yes, NRIs can open term deposit accounts for a fixed period ranging from 1 year to 5 years in US Dollars, Pound Sterling, Euro, Canadian Dollars, Austrian Dollars and Jap.Yen. The bank allows deposit held under FCNR account as resident deposits. Premature withdrawal will be subject to penalty. No penalty is applicable on premature renewal.