Punjab & Sind Bank hikes interest rates on fixed deposits (FDs) of 1 to 10 years

Punjab & Sind Bank (PSB), a public sector lender, has raised interest rates on fixed deposits of less than ₹2 crore. The announcement has been made today, June 10, 2022, only two days after the repo rate rise. Following the amendment, the bank increased interest rates on fixed deposits maturing in one to ten years. According to the bank, the new interest rates will apply to domestic term deposits, NRO accounts, capital gain accounts scheme 1988, recurring deposit scheme, and PSB fixed deposit tax-saver scheme.

PSB FD Rates

The bank will continue to give a 3% interest rate on deposits from 7 days to 45 days, and a 3.70% interest rate on deposits from 46 to 90 days. Regular customers will get an interest rate of 4.45 per cent on deposits maturing in 91 days to 179 days, and 3.90 per cent on deposits maturing in 180 – 269 days. On deposits of 270 – 364 days, the general public will get an interest rate of 4.50 per cent. The interest rate on one-year to two-year deposits was 5.15 per cent before, but it has now been raised to 5.25 per cent, a 10 basis point increase.

Whereas the old interest rate on fixed deposits of more than two years and three years was 5.2 per cent, it has now been raised to 5.35 per cent, a 15 basis point increase. Previously, the bank offered an interest rate of 5.4 per cent on deposits maturing in 3 years to 5 years and 5 years to 10 years, but that rate has now been raised to 5.55 per cent, a 15 basis point increase.

For the additional benefit of elderly individuals, PSB has mentioned on its website that “Senior Citizens shall be given benefit of additional interest of 0.50% on term deposits of less than Rs. 2 crore, over and above the mentioned rates for the maturity of 180 days & above for fresh as well as on renewal of term deposits, same shall not be available to NRE and NRO Deposits.”

On a 5 year PSB fixed deposit tax-saver scheme which can be booked with a deposit up to ₹1.5 lakh for tax benefits under section 80C, the bank offers a regular interest rate of 5.55% p.a. and 6.05% p.a for senior citizens.

Note

Kotak Mahindra Bank revised its interest rates on fixed deposits of less than ₹2 crore today, June 10, 2022. The bank has raised the interest rate on FDs with terms ranging from 1 to 10 years. Fixed deposits with maturities ranging from 365 to 389 days will pay 5.50 per cent, up from 5.40 per cent before, while term deposits with maturities of 390 days will pay 5.65 per cent, up from 5.50 per cent. A rate of 5.65 per cent will be provided on FDs maturing in 391 days to less than 23 months, which was previously 5.50 per cent, and the interest rate available for deposits of 23 months to three years is now 5.75 per cent, up from 5.60 per cent. On deposits of 3 to 10 years, the bank has hiked the interest rate from 5.75% to 5.90%.