It's A Solid 8.85% Interest On Fixed Deposits From This Government Bank

Punjab and Sind Bank like most other banks has raised its interest rates on fixed deposits. The Reserve Bank of India has hiked repo rates several times in the last few quarters to take the rates to 6.5%. On the other hand the bigger and the smaller banks alike have also hiked their deposit rates with the larger ones now offering deposit interest rates near 8% for senior citizens.

PSB-UTKARSH 222 DAYS FIXED DEPOSIT SCHEME FROM PUNJAB AND SIND BANK

Punjab and Sind Bank offers a 222-days deposit where the interest rates offered is 8.85% for super senior citizens, 8.50% for senior citizens and 8% for regular deposits. If you see these deposit interest rates are the best from any government bank in the country. At the moment no government bank offers an interest rate of 8% on fixed deposits for regular deposits.

PUNJAB AND SIND BANK FABULOUS 300 DAYS FIXED DEPOSIT SCHEME

PUNJAB AND SIND BANK also runs a fabulous 300-days deposit, where the interest rate offered is 7.50% for regular deposits, 8% for senior citizens and 8.35% for super senior citizens. The only problem with these deposits is that while the interest rates are good, but, the tenure is too short. What happens in the next 1 year if the deposit interest rates were too fall? In that case on renewal you are likely to get much lower interest rates.

Punjab and Sind Bank FABULOUS PLUS 601 DAYS FIXED DEPOSIT SCHEME

Looking for a slightly longer term tenure then the 601 days deposit is ideal. Here the interest rates on the deposits are lower though. Normal deposits are offered an interest rate of just 7%, while senior citizens get 7.50% and super senior citizens get 7.85%. The interest rates on fixed deposits by banks are unlikely to change at least until the end of the year. Thereafter, we believe that interest rates could fall gradually and hence investors should look for deposits that offer good interest rates over the longer term.

The deposits from Punjab and Sind Bank are safe, given that the bank is majority owned by the Government of India. We do not see investors should be worried as far as the safety of their deposits are concerned.