Punjab & Sind Recurring Deposit Interest Rates

Punjab & Sind Bank Recurring Deposit

Punjab & Sind Bank Recurring Deposit

A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount as per your budget on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount. At the end of the tenure, the funds are transferred along with the accrued interest to the bank account specified at the time of booking of the RD.

The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account. It is often recommended for starters who wish to save.

Advantages to opening an RD account:

  • Interest Rate earned is generally equal to that of an FD
  • Safe and secure form of investment
  • Secure from fluctuations and volatility
  • Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
  • Can be opened with small minimum amount.
  • Lump sum received at maturity, including the interest
  • The rate of interest is higher as compared to an ordinary saving bank account
  • Flexible tenures to suit the budget of the individual
  • Recurring Deposit Interest rate is fixed so you are assured of a fixed return
  • Loan / overdraft facility available with some banks.

Punjab & Sind Recurring Deposit

An RD in Punjab & Sind Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to a Punjab & Sind Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.

Key Features of Punjab & Sind Bank RD Account

  • Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
  • Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
  • Flexible tenure – you can choose tenures which can range from a few months to several years depending on your financial goal
  • Attractive interest rates: Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
  • Is a safe, low-risk form of investment.
  • Quick liquidity options and access to your funds when you need it; nominal penal charges apply.

Types of Recurring Deposits Offered by Punjab & Sind Bank:

Regular Recurring Deposit:

  • Minimum Opening Balance for Punjab & Sind Bank RD account: Rs. 10
  • Maximum of any amount per month
  • Period of RD: 6 months to 10 years
  • Preferential interest rate for senior citizens
  • TDS on Interest is applicable
  • Nomination facility available
  • Premature Closure of RD Allowed
  • Loan/ Overdraft against deposit is available
  • Rate of interest as applicable to fixed Deposit for the respective maturity period.
  • The interest is compounded every quarter and paid along with principal at the time of maturity of deposit.

Punjab & Sind Recurring Deposit Interest Rates

Punjab & Sind Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Punjab & Sind Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Punjab & Sind Bank RD interest rates including Punjab & Sind Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Punjab & Sind Bank, it is advisable to check with the bank directly.

Punjab & Sind Bank recurring deposit interest rates 2015 – 2016

Rate of Interest on Domestic Term Deposits, Capital Gain Accounts Scheme 1988, Recurring Deposit Scheme and PSB Fixed Deposit Tax-Saver Scheme:

Maturity Term Deposits Less than Rs.1 Cr (% p.a.)
7 - 14 Days 4.00
15 - 30 Days 4.10
31 - 45 Days 5.10
46 - 90 Days 5.60
91 - 150 Days 6.10
151-179Days 6.10
180 - 269 Days 6.60
270 – 364 Days 6.85
1 Year -2Year 7.10
Above 2 Years - <3Years 7.00
3 Years – 5Years 7.00
>5 Years – 10 Years 7.00

Punjab & Sind Bank Senior Citizen RD Interest Rates

Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.

Punjab & Sind Bank RD FAQs

What is the eligibility criteria to open an RD account with PNB?

Following are eligible to open an RD with PNB:

  • Individual (singly or jointly) with others.
  • Minor who have attained the age of 10 years and above in his/her own name (proof of age required)
  • Minors below the age of 10 years under guardianship of Natural/legal guardian.
  • Proprietorship/Partnership Firm, Commercial Organization, Company / Corporate Body
  • Hindu Undivided Family
  • Association, Club, Society, Trust or Religious/Charitable Educational Institutions,
  • Institution, Govt. or Semi Govt. Body, Co-operative societies, religious and charitable institutions etc.
  • Illiterate and blind persons can also open accounts.

What is the minimum and maximum amount required to open an RD with Punjab & Sind Bank?

The minimum opening balance for a regular recurring deposit with Punjab & Sind Bank is Rs. 10.

What is the minimum deposit period?

The minimum deposit tenure is 6 months and can go up to as high as 120 months.

How do I apply for a regular recurring deposit?

If you are a new customer, you can start with opening a savings account, which can be linked with an RD account.

Alternately, you can visit your nearest branch and submit the Deposit Account form.

What is the documentation required to open an RD account?

You will require the following documents:

  • Filled-in application form
  • Passport size photograph
  • Proof of residence, PAN Card, ID Proof
  • Any other KYC documents as required by the bank