Punjab and Sind Bank FD Interest Rates 2025

What are the Punjab and Sind Bank FD Rates?

Punjab and Sind Bank fixed deposit is available with a minimum amount of ₹1,000 for regular FDs. FD can be held singly, jointly, or operated through a power of attorney, and senior citizens receive additional interest on eligible tenures. The bank also offers a special scheme called PSB Green Earth Deposit, available for fixed tenures of 22, 44, and 66 months with interest rates of 7.00%, 6.75%, and 6.45%, respectively. The minimum amount for PSB Green Earth Deposit is ₹10,000, and premature withdrawal is allowed as per guidelines. This article outlines current FD interest rates offered by Punjab and Sind Bank 2025 and key features of the FDs.

 Punjab and Sind Bank Fixed Deposit Key Highlights 

Types of Punjab and Sind Bank Fixed Deposit Scheme 

Below are the best PSB Fixed Deposit Schemes for general and senior citizens with their benefits and features. Make sure to check while availing the schemes -

1. PSB Dhan Lakshmi-444 days

   The PSB Dhan Lakshmi-444 Days is a special fixed deposit scheme of Punjab & Sind Bank with a specific, attractive interest rate for a tenure of 444 days. It is structured to give it better returns than the standard FDs offered by the bank over an equivalent term.

   Tenure: 444 days 

   Senior Citizens Benefits: An Additional 0.50% over the regular employees

   Super Senior Benefits: An Additional 0.15% on the senior citizen interest rates

   Auto Renewal Facility: Yes, available

2. PSB Fixed Deposit Tax-Saver Scheme

   Under this category, the investments are eligible for a tax deduction of up to Rs 1.5 lakhs under Section 80C. This scheme is available under the best tax-saving schemes category offered by Punjab and Sind Bank. 

   Lock-in Period: 5 years

   Tax Benefits: Available under Section 80C

   Minimum Deposit Amount: Rs. 100

   Nomination Facility: Yes, available 

3. PSB Fixed Deposit Scheme

   The fixed deposit interest rates start from 3.00% to 6.80% per annum for the general citizens and 3.00% to 7.30% per annum for the senior citizens, with an additional 0.5% for its senior citizens.

   Tenure: 7 days to 10 years

   Premature Withdrawal: Yes, Available 

   Autorenewal Facility: With restrictions up to the maturity value of 2 crores

   Nomination Facility: Yes, available 

4. PSB Capital Gain Deposit Scheme

   The PSB Capital Gain Deposit Scheme is a special scheme provided by Punjab & Sind Bank to assist taxpayers in saving on capital gains tax. This plan is under the Capital Gains Account Scheme (CGAS), 1988, under the Income Tax Act.

   Types of Deposits: Savings Deposit and Term Deposits

   Nomination Facility: Yes, available 

   Additional Senior Citizens Benefits: Not Available under this scheme

   Closure of Account: After the approval of the jurisdictional Income Tax Officer

5. PSB Green Earth Scheme: 

   PSB Green Earth is a special fixed deposit scheme whereby your money is invested in green, sustainable projects only. It has fixed tenures and competitive interest rates, enabling you to contribute to environmentally friendly projects and save.

Key Benefits of Punjab and Sind Bank Fixed Deposits

Here are some of the major benefits of Punjab and Sind Bank Fixed Deposits.

• Flexible Tenure: You can choose to invest for a duration that suits your financial goals, from as short as 7 days to as long as 10 years, offering flexibility for both short-term and long-term savers.
• Higher Rates for Senior Citizens: Senior citizens enjoy an additional 0.50% interest on fixed deposits with maturities of 180 days and above, helping them earn better returns on their savings.
• Variety of FD Options: Punjab and Sind Bank offers different types of FDs, including Regular Fixed Deposits, PSB Green Earth Schemes, and Tax Saving FDs under Section 80C for individuals looking to reduce taxable income.
• Premature Withdrawal: Most FDs can be closed before maturity if needed. However, a penalty of 1.00% is applied on the applicable interest rate for the period the deposit remained with the bank. Premature withdrawal is not allowed for Tax Saving FDs, except in the event of the depositor’s death.
• Loan Facility: You can avail of a loan or overdraft facility of up to 90% of the FD amount, ensuring liquidity without breaking your deposit. The applicable interest rate is usually 1% to 2% higher than the FD interest rate and depends on the bank's prevailing policy at the time of availing the loan. This facility is available for both general and senior citizen depositors.
• Sweep-In / Sweep-Out Facility: The PSB Flexi Savings Deposit Product offers an auto sweep-in and sweep-out facility. For example, a customer can enable this feature with a defined balance of ₹50,000. Any amount exceeding ₹50,000 in the savings account is automatically transferred in multiples of ₹5,000 into a fixed deposit for periods ranging from 46 to 180 days. 

Punjab and Sind Bank FD Interest Rates 

Investors can select Punjab and Sind Bank FDs from a wide range of maturities and competitive interest rates.

Punjab and Sind Bank FD rates ( Less than ₹3 Crores)

*Punjab and Sind Bank FD interest rates w.e.f. Aug 18, 2025

Punjab and Sind Bank FD Rates (Bulk Deposits) above 3 crore 

*Punjab and Sind Bank FD interest rates w.e.f. Aug 19, 2025

Check FD Interest Rates in India to see how Punjab and Sind Bank compares with other banks.

How to Open a Punjab and Sind Bank FD

Opening a Fixed Deposit (FD) with Punjab and Sind Bank is simple, whether you’re an existing account holder or a new customer. You can choose from online or offline methods, based on your convenience.

1. Online Method

   Customers who wish to avail the online facility and go through these steps, and open their FD with PSB Bank: 

   • Internet Banking or UNic Mobile App: Log in using your credentials 
   • Go to Fixed Deposit: Navigate to the Fixed Deposit section
   • Select ‘Open Fixed Deposit’: Click on ‘Open Fixed Deposit’
   • Enter Amount and Tenure: Enter the deposit amount and select the tenure
   • Select FD Type: Choose the type of FD and your interest payout frequency.
   • Enter Nominee Details: Provide nominee details
   • Submission: Confirm your details and submit the request
   • Confirmation: You’ll receive a digital confirmation and an FD receipt

2. Offline Method

   Customers who wish to avail this facility by using the old method of visiting the branch and going through these steps- 

   • Visit Branch: Visit your nearest Punjab and Sind Bank branch
   • Documents: For a new customer, carry the original and photocopies of the documents
   • Fill the FD Form: Fill with your desired amount, tenure, and FD type
   • Submit - Submit with a passport-size photo and your ID/address proof
   • Make Payment: Deposit the amount through PSB savings or current account
   • Collect the FD Receipt - Collect the printed receipt, including the details

Documents Required for Punjab and Sind Bank FD

If you're opening an FD account as a new customer, you need to submit the following:

• Proof of Identity (any one): Aadhaar Card, Voter ID, Passport, PAN Card, Driving Licence, NREGA Job Card
• Proof of Address: Aadhaar, Passport, recent utility bill, or bank statement
• Photograph: One passport-size photo (offline mode)
• PAN Card or Form 60: Mandatory for tax deduction purposes
• Profession Proof: For HUFs, firms, or business accounts

Taxation on Punjab and Sind Bank FD Interest

Interest earned on Fixed Deposits with Punjab and Sind Bank is taxable under the head “Income from Other Sources” according to your income tax slab. As per Section 194A of the Income Tax Act, the bank deducts Tax Deducted at Source (TDS) at the rate of 10% if the total interest earned in a financial year exceeds ₹50,000 for regular individuals and ₹1,00,000 for senior citizens.

 If you do not provide your PAN card, the TDS is deducted at a higher rate of 20%. To avoid TDS deduction, individuals whose total income is below the taxable limit can submit Form 15G or 15H (for non-senior and senior citizens, respectively). 

Key Takeaways

Punjab and Sind Bank Fixed Deposits offer interest rates across various tenures, starting from 3.00% to 6.80% per annum for the general citizens and 3.00% to 7.30% per annum for the senior citizens, helping individuals align savings with their financial goals. PNB FD can be opened online via Internet Banking or the PSB UNiC app, as well as offline at any branch. To know which bank currently offers the most attractive fixed deposit returns, check out the highest FD rates available in India.