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Punjab and Sind Bank Fixed Deposit

Updated 06 Dec 2023

Punjab and Sind Bank is a public sector bank in India headquartered in New Delhi. It was established in 1908 to help the weaker sections of society and raise their living standards. Today, this bank has over 1,553 branches throughout 32 states and union territories in India.

Types of Punjab and Sind Bank Fixed Deposits

  • PSB Fixed Deposit Scheme
     
  • PSB Tax Saver Scheme
     
  • PSB Flexi Savings Deposit Product
     
  • PSB Nanhe Chaman Term Deposit
     
  • PSB Grih Lakshmi Fixed Deposit Scheme
     
  • Special Rate for Special Days (SRSD-1051)

Benefits of Punjab and Sind Bank Fixed Deposit Schemes

The following are the benefits of investing in Fixed Deposit Schemes offered by Punjab and Sind Bank:

 


1. Period: The FD with Punjab and Sind Bank ranges from 7 days to 10 years.

 


2. Convenient: Open hassle-free FD using online banking in a few minutes.

 


3. DICGC Insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs.

 


4. Minimum Amount: Fixed deposits with Punjab and Sind Bank can be opened with an investment of ₹1,000 and for tax saver FD as low as ₹100.

 


5. Preference to Senior Citizens: Additional 0.5% p.a. for senior citizens.

 


6. Nomination Facility: Depositors can nominate beneficiaries for their investments in Punjab and Sind Bank FDs.

Features of PSB Fixed Deposit Scheme

  • Scheme tenure: 7 days to 10 years.
     
  • Senior Citizens shall benefit from additional interest of 0.5% on term deposits of less than ₹2 crores.
     
  • Super Senior Citizens (80 Years & above) shall benefit from additional interest of 0.15% on specific periods (i.e. 400 Days, 555 Days & 601 Days) term deposits of less than ₹2 crores.

Features of PSB Tax Saver Scheme

If you invest in this FD, you are eligible for a tax deduction of up to ₹1.5 lakhs under Section 80C of the Income Tax Act of 1961.

 

 

  • Minimum investment: ₹100 and in multiples of ₹100.
     
  • Maximum investment: ₹1.5 lakhs per annum
     
  • Scheme tenure: 5 years
     
  • Lock-in period: 5 years
     
  • You cannot encash this deposit before the expiry of 5 years.
     
  • In the case of joint name, the tax benefit under section 80C will be available only to the first holder of the deposit.
     
  • A Nomination facility is available.
     
  • In the event of the death of the holder of an FD in respect of which a nomination is in force, the nominee shall be entitled to encash the deposit at any time before or after the maturity of the FD.

Features of PSB Flexi Savings Deposit Product

The Product offers liquidity in the shape of savings deposits as well. Relatively higher returns are available on funds parked in fixed deposits.

 

 

  • The account holders, throughout the quarter, will have to maintain a minimum balance of ₹25,000.
     
  • The exceeding amount in the multiple of ₹5,000 over the threshold limit of ₹2 lakhs for non-individual customers and ₹50,000 for individual customers will be automatically transferred and invested into the bank’s fixed deposit product.
     
  • Scheme tenure: 46 days to 180 days.
     
  • Charges for non-maintenance of minimum balance is ₹150 for Rural/Semi-urban branches and ₹300 for Urban & Metro branches per quarter.
     
  • Reverse Sweep will be in or a minimum of a multiple of ₹5,000.
     
  • You can also avail of the auto-renewal facility.
     
  • A nomination facility is also available.

Features of PSB Nanhe Chaman Term Deposit

  • Minimum investment: ₹1,000 and after that in multiples of ₹500
     
  • Maximum investment: ₹1.5 crores
     
  • Scheme tenure: 5 years and 10 years
     
  • For a 5-year maturity period, the interest rate would be card rate plus 0.25%.
     
  • For a 10-year maturity period, the interest rate would be card rate plus 0.5%.
     
  • Auto-renewal of the deposit is mandatory
     
  • A nomination facility is also available
     
  • Premature withdrawal is available subject to the penalty
     
  • A loan against this deposit is available if the use of the funds is for the minor.

Features of PSB Grih Lakshmi Fixed Deposit Scheme

  • Minimum investment: ₹5,000 and in multiples of ₹1,000.
     
  • Maximum investment: ₹1.5 crores.
     
  • Scheme tenure: 551 days.
     
  • Interest rate as applicable for a term deposit scheme for the specified period (as notified from time to time) with an additional 0.25%.
     
  • Only resident women, including minors, can open this account. In the case of a joint account, the first account holder must be a woman.
     
  • A nomination facility is also available.
     
  • Premature withdrawal is available, subject to the penalty.

Features of Special Rate for Special Days (SRSD-1051)

  • Minimum investment: ₹25,000 and in multiples of ₹5,000.
     
  • Maximum investment: ₹1.5 crores.
     
  • Scheme tenure: 1051 days only.
     
  • Scheme validity: Up to June 23, 2023.
     
  • Interest rate as applicable for a term deposit scheme for the specified period (as notified from time to time) with an additional 0.25% thereupon.
     
  • A nomination facility is also available.
     
  • Premature withdrawal is available, subject to the penalty.

Eligibility Criteria

The following are the eligibility criteria for opening an FD account with Punjab and Sind Bank:

 

 

  • Nationality: Indian, NRO, NRE
     
  • Age: Above the age of 18 or a minor under their legal guardian’s supervision
     
  • Type of Applicant: Individuals, sole proprietorships, partnership firms, private and public limited companies, HUF, specified associates, societies, trusts, departments of authority created by government (Central or State), LLP, etc.

Documents Required

The required documents to open a Punjab and Sind Bank FD account are as follows:

 

 

  • A valid passport
     
  • Updated driving licence
     
  • Aadhaar card
     
  • Voter's ID card
     
  • NREGA job card
     
  • National population register.
     
  • PAN card or Form No. 60.
     
  • Document the nature of a declared profession or activity, a business or financial status.

How to Open PSB Fixed Deposit Account?

Follow these steps to create an FD account with Punjab and Sind Bank:

 

 

  • Step 1: Visit the nearest Punjab and Sind Bank branch.
     
  • Step 2: Duly fill out the prescribed FD account opening form and ensure that all pertinent information, such as the desired tenure and deposit amount, is accurately furnished.
     
  • Step 3: Attach all relevant documentation alongside a cheque for funding your deposit.
     
  • Step 4: After completing the steps above, remember to collect the Fixed Deposit Receipt (FDR).

 

Alternatively, you can also avail PSB Internet banking services or PSB’s UnIC, a mobile app to open an FD account with the bank.

How to Close PSB FD?

To close the Punjab and Sind Bank FD, please follow the steps below:

 

  • Visit the Bank Branch.
     
  • Fill out the premature FD closure form.
     
  • Attach your KYC documents.
     
  • Submit your FD receipt or certificate along with the documents.

PSB Fixed Deposit Scheme Premature Withdrawal Terms and Conditions

Here are some of PSB’s policies on premature withdrawal:

 

 

  • Account holders must submit an account closure application to terminate their fixed deposit prematurely. 
     
  • It is mandatory to provide prior notice of 1 complete banking day to break PSB FD.
     
  • No premature account closure charges are levied on staff members and ex-staff members.
     
  • If the duplicate FDR holder wants to cash it in early, the bank will deposit the money into their account at Punjab and Sind Bank or another bank of their choice.

FAQs

Is there any tax deduction available for fixed deposits?

Yes, per Section 80C of the Income Tax Act of 1961, an investor can claim a tax deduction of up to ₹1.5 lakhs per financial year by investing in a tax-saving FD scheme.

What is an appropriate time for investing in a fixed deposit?

The right time to invest in a fixed deposit depends on the investor's financial goals, risk appetite, and prevailing interest rates. Generally, it is advisable to invest in fixed deposits when the interest rates are high and are expected to remain stable for the investment period.

Is the ₹5 lakhs DICGC insurance cover applicable on Punjab and Sind Bank FD?

Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Punjab and Sind Bank FD.

What is the minimum and maximum amount I can invest in the PSB FD scheme?

Punjab and Sind Bank offer various FD schemes that have their distinct investment limit. However, the minimum investment starts at as low as ₹100.

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Maturity Amount₹1,06,000

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