The interest rate on fixed deposits less than 2 crore has risen as a result of a move by public sector lender Punjab & Sind Bank (PSB).
The interest rate on fixed deposits less than 2 crore has risen as a result of a move by public sector lender Punjab & Sind Bank (PSB). The new rates will go into effect on July 11, 2022, according to the bank’s website. On July 1st, the bank raised its interest rates, marking the second increase in interest rates for domestic term deposits in a month. Following the change, the bank raised interest rates on fixed deposits with maturities ranging from one to ten years, and fixed deposit investors will begin receiving higher interest rates on July 11.
PSB FD Interest Rates
The bank will continue to pay 2.80 percent interest on deposits maturing in 7 to 45 days and 3.70 percent interest on term deposits maturing in 46 to 90 days. Fixed deposits maturing in 91 to 179 days will continue to pay 3.90 percent interest, while those maturing in 180 to 269 days will pay 4.45 percent interest. PSB will continue to offer a 4.50 percent interest rate on deposits maturing in 270-364 days. However, the interest rate on term deposits maturing in 1-2 years has been raised by 10 basis points, from 5.25 percent to 5.35 percent. Interest rates on deposits maturing in more than two years but less than three years were raised from 5.35 percent to 5.40 percent, and rates on deposits maturing in three years to five years were raised from 5.55 percent to 5.60 percent, a five basis point increase. While the bank raised the interest rate on five- to ten-year deposits from 5.55 to 5.60 percent.
According to PSB’s website, “Senior Citizens shall be given benefit of additional interest of 0.50 percent on term deposits of less than Rs. 2 crore, over and above the mentioned rates for the maturity of 180 days and above for fresh as well as on renewal of term deposits, but same shall not be available to NRE and NRO Deposits.”
Regular customers will now receive an annual interest rate of 5.60%, while senior citizens will receive an annual interest rate of 6.10% on the PSB Fixed Deposit Tax Saver Scheme, which has a 5-year deposit period for tax deductions under Section 80C.
|Maturity||Fixed Deposit Less Than RS. 2 Crore (%)|
|1 Year-2 Year||5.35|
|Above 2 Years < 3 Years||5.40|
|3 Years- 5 Years||5.60|
|> 5 Years – 10 Years||5.60|
The minimum amount of deposit shall be Rs 1 lakhs
Disclaimer:- Whatever information is given is for educational purposes only and all the information given is taken from the entire official website.