Punjab & Sind Bank RD Interest Rates

On May 19, 1894, PNB was born. The founding board was recruited from all sections of India, representing many faiths and backgrounds, with the shared goal of providing the country with a truly national bank that would serve the country's economic interests.

Now, the Bank also offers its customers different products and services. Among these products and services, it also offers its customers recurring deposits that have popularity among its clientele.

Punjab and Sind Bank Recurring Deposit

Religious and philanthropic organizations, co-operative societies, government and semi-government bodies, associations, clubs, corporations, firms, and individuals could also open a Recurring Deposit (RD) account with Punjab & Sind Bank (either singly or jointly). The duration of the RD account spans from 6 months to 10 years. The account will need a minimum deposit of Rs.10 to be opened. Punjab and Sind Bank also provide competitive interest rates on their RD accounts.

Characteristics of the Punjab and Sind Bank Recurring Deposit

This is a list of the major features of an RD from this Bank:

  • Allows you to deposit little amounts of money regularly rather than a large one-time contribution when the RD is opened.
  • Flexible tenure - based on your financial goals, you can choose tenures ranging from a few months to several years.
  • Ideal for persons with a regular, consistent income who may not be able to save the required amount to create an FD.
  • Interest rates that are appealing: Similar to an FD, but with a lower continuing investment and a much higher interest rate than the savings bank account.
  • It is a low-risk investing option.
  • Quick liquidity options and access to funds when needed; minor penalties apply.

Punjab and Sind Bank RD interest rates 2024

Here is a table to represent the Punjab and Sind Bank RD interest rates:

Tenure

Punjab and Sind Bank RD rates

180 days - 269 days

6.40%

270 days - 364 days

6.40%

1 year - 2 years

6.45%

2 years but less than 3 years

6.45%

3 years - 5 years

6.45%

5 years and up to 10 years

6.45%

Who is Eligible for the RD from Punjab and Sind Bank?

The following individuals are entitled to open an RD with PNB:

  • Individual (alone or in collaboration with others).
  • The minors who have attained the age of ten and above in their own name (proof of age required).
  • Minors under the guardianship of a natural/legal guardian under the age of ten.
  • Commercial Organization, Company / Corporate Body, Proprietorship/Partnership Firm
  • Undivided Hindu Family
  • Associations, clubs, societies, trusts, or religious/philanthropic educational institutions, government or semi-government bodies, co-operative societies, religious and charitable institutions, and so on.
  • Accounts can also be opened by those who are illiterate or blind.

Types of RDs from the Punjab and Sind Bank

There are mainly three types of RD accounts from the Punjab and Sind Bank based on the tenure of the RD:

1) Short Term RD

A short-term RD is an RD account opened with Punjab and Sind Bank for a duration of 180 days to two years. The Bank pays interest on such deposits ranging from 6.40% to 7% p.a. Senior folks can earn an extra 0.50% per year on short-term recurring deposits.

2) Medium-Term RD

Medium-term recurring deposits have a tenure of more than two years and up to five years. The Bank's rate of return ranges from 6.55% to 6.80% p.a. For creating a medium-term RD account with them, persons over the age of 60 can earn an interest rate of 7.05% to 7.30% p.a.

3) Long-Term RD

A long-term recurring deposit is one that is open for longer than five years. On long-term RDs, Punjab and Sind Bank give common people 6.55% p.a. Senior citizens can earn 7.05% p.a. on long-term recurring deposits.

FAQs

Q1. What documents are needed to open an RD account?

The following documents are required:

  • Application form completed.
  • Photograph in passport size.
  • Proof of residency, PAN Card, and ID
  • Any other KYC documentation that the Bank may require.

Q2. How can I make an application for a recurring deposit?

If you are a new customer, you should begin by opening a savings account that can be connected to an RD account. You could also go to your closest branch and fill up the Deposit Account form.

Q3. Will there be TDS on RD interest?

Answer: If the interest earned on the RD is less than Rs 10,000, no TDS will be deducted. If it exceeds the Rs 10,000 limit, a 10% TDS will be levied. If your income is not taxable, you can avoid a TDS deduction by submitting Form 15G (for non-senior citizens)/ Form 15H (for senior citizens).

Q4. What are the lowest and highest amounts for opening an RD with Punjab & Sind Bank?

A regular recurring deposit with Punjab & Sind Bank requires a minimum initial balance of Rs. 10.

Q5. What is the time limit for making a deposit?

The minimum deposit term is six months, and it can be as long as 120 months.

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