Punjab and Sind Bank Senior Citizen FD Rates 2025

What is a Punjab and Sind Bank Senior Citizen FD?

A Punjab & Sind Bank Senior Citizen FD is a fixed deposit scheme designed to offer higher interest rates to senior citizens compared to regular FDs. It provides a steady income option with flexible interest payout choices, monthly, quarterly, half-yearly, or cumulative at maturity. Super senior citizens (aged 80 years and above) get an additional 0.15% interest on special tenures like 333, 444, 555, 777, and 999 days.

The minimum deposit amount is ₹1,000, making it accessible to a wide range of investors. You can check the latest Punjab and Sind Bank FD rates. Let us explore key benefits, the latest rates, and the process of opening a senior citizen FD account.

Key Benefits of Punjab and Sind Bank Senior Citizen FD

The following are some important benefits provided to senior citizens:

1. Automatic Renewal Facility:

   Fixed deposits are automatically renewed at maturity for deposits under ₹2 crore, ensuring continued returns without requiring branch visits or manual reinvestment by senior depositors.

2. Sweep‑in/Sweep‑out Facility:

   This plan is offered by PSB Flexi Savings Deposits; any savings beyond a certain amount (for example, ₹50,000) can be swept into short-term FDs and then returned to a savings account as needed. That means senior citizens do not have to manage multiple accounts and can earn higher FD rates while maintaining liquidity.

3. Flexible Tenure Options: 

   Punjab & Sind Bank offers FD tenures ranging from 7 days to 10 years, including special periods under initiatives like “Green Earth”. These flexible options allow senior citizens to align their deposits with both short-term needs and long-term financial goals.

4. Premature Withdrawal Facility: 

   FDs can be closed early in emergencies with a flat 1% penalty on the applicable rate, giving flexibility while retaining most interest earned.

Punjab and Sind Bank Interest Rates for Senior Citizens

Here are the Punjab and Sind FD interest rates for senior citizens with different tenures:

Punjab and Sind Bank FD Rates for Senior Citizens (Less Than ₹3 Crore)

*Punjab and Sind Bank FD interest rates w.e.f. April 1, 2025

Note: Senior citizens can compare the best FD interest rates and make informed decisions.

How to Open a Punjab and Sind Senior Citizen FD?

Opening a Punjab and Sind Senior Citizen Fixed Deposit is easy. You can do it online or by visiting a branch, whichever is convenient for you:

1. Online Method

   • Log in to the PSB UnIC digital banking platform.
   • Select "Deposits" or "Open Fixed Deposit" from the menu.
   • Choose the time frame you want and enter the deposit amount.
   • Select the Senior Citizen FD option to benefit from the higher interest rate. You will automatically receive an additional 0.50 percent annually from regular FDs.
   • Select whether you want to receive periodic or cumulative interest payments.
   • Add nominee details, review all details, and submit.
   • You can easily create and validate your FD, including its receipt, with PSB UnIC. You will also receive a confirmation by email or SMS.

2. Offline Method

   • Visit the Punjab & Sind Bank branch nearest to you.
   • Request and complete the application for FD. 
   • For seniors (those aged 60 and above), present proof of age in the form of an Aadhaar, passport, voter ID, or school leaving certificate.
     • A passport-size photo
     • KYC documents
     • PAN card or Form 60
     • Proof of profession/activity (as per regulations) 
   • Deposit the amount via cash or cheque.
   • To apply for the additional interest benefit, select Senior Citizen FD.
   • After you pick up your FD receipt, the bank immediately issues the FD.

Taxation on Punjab & Sind Bank Senior Citizen FD Interest

Interest earned on Punjab & Sind Bank Senior Citizen FDs is taxable and is added to your total taxable income, taxed according to your applicable income tax slab. From April 1, 2025, TDS will be deducted only if the total interest earned in a financial year exceeds ₹1 lakh. Senior citizens can submit Form 15H to avoid TDS if their total income falls below the taxable threshold. Additionally, under Section 80TTB, they can claim a deduction of up to ₹50,000 on the interest earned from Punjab & Sind Bank FDs. While tax-saving FDs qualify for a deduction under Section 80C, the interest income from them remains fully taxable.

Key Takeaways

The interest rates on the Punjab & Sind Bank Senior Citizen Fixed Deposit are 0.50% higher than those on regular FDs. The application process for FD accounts is made convenient by the availability of both online and in-person opening options. Senior citizens can find different financial products more appropriate if they are looking for higher short-term returns. They can also borrow up to 90% of their FD value at competitive interest rates, ensuring liquidity without disrupting the deposit’s earnings.