You’ve probably never heard of Punjab National Bank (International) Limited, but it’s currently offering a cracking range of Cash ISAs, boasting market-leading returns.
It’s just one of the many unfamiliar names topping the savings best buy tables right now.
So what is Punjab National Bank and is it a safe home for your money?
What’s the story?
Punjab National Bank (International) Limited, or PNBIL for short, has been operating in the UK since May 2007.
It’s the wholly owned subsidiary of Punjab National Bank (PNB) in India, which is the third largest bank in the country with more than 78 million customers worldwide and over 6,000 branches.
In the UK though the PNBIL's presence on the high street is limited.
PNBIL now has seven branches in England, located in Central London, Southall, Leicester, Birmingham, Ilford, Wembley, and Wolverhampton.
What’s on offer?
PNBIL offers a current account, business accounts, international debit card and a range of savings accounts in the UK, including Cash ISAs.
Below is a roundup of the rates on offer on PNBIL Cash ISAs right now.
|
Cash ISA |
Interest rate AER |
|
Variable rate Cash ISA |
2% |
|
One-year fixed rate Cash ISA |
1.9% |
|
Two-year fixed rate Cash ISA |
2.15% |
|
Three-year fixed rate Cash ISA |
2.3% |
|
Four-year fixed rate Cash ISA |
2.5% |
|
Five-year fixed rate Cash ISA |
2.7% |
The variable Cash ISA can be opened with £1, while the fixed rate deals require a minimum £1,000 deposit. All accept transfers of previous years’ ISAs.
You’ll need to go into a branch to open an account, but after that it can be managed online.
How does it compare?
So how does PNBIL compare to the rest of the market? I’ve taken a look at the top three Cash ISAs across a range of terms to find out.
Easy access Cash ISAs
|
Account |
Interest rate AER |
Bonus? |
Minimum deposit |
Transfers allowed? |
|
Punjab National Bank (International) Limited Variable Rate Cash ISA |
2% |
None |
£1 |
Yes |
|
NS&I Direct ISA |
1.50% |
None |
£1 |
No |
|
Skipton BS Online Bonus Cash ISA |
1.50% |
0.5% for 12 months |
£1 |
No |
When it comes to easy access Cash ISAs PNBIL surpasses the competition by a fair bit.
One-year fixed rate Cash ISAs
|
Account |
Interest rate AER |
Minimum deposit |
Transfers allowed? |
|
Punjab National Bank (International) Limited Fixed Rate Cash ISA |
1.9% |
£1,000 |
Yes |
|
Al Rayan Bank 12-Month Fixed Term Cash ISA |
1.9%* |
£1,000 |
Yes |
|
1.65% (only until 4pm on 30th April) |
£1,000 |
Yes |
* Anticipated profit rate
On one-year deals PNBIL faces stiffer competition as Al Rayan Bank is also offering a top tax-free return of 1.9%.
Two-year fixed rate Cash ISAs
|
Account |
Interest rate AER |
Minimum deposit |
Transfers allowed? |
|
Punjab National Bank (International) Limited Fixed Rate Cash ISA |
2.15% |
£1,000 |
Yes |
|
1.85% |
£1,000 |
Yes |
|
|
Kent Reliance BS Two-Year Fixed Rate Cash NISA |
1.85% |
£1,000 |
Yes |
Over two-years PNBIL offers the best return once again.
Three-year fixed rate Cash ISAs
|
Account |
Interest rate AER |
Minimum deposit |
Transfers allowed? |
|
Punjab National Bank (International) Limited Fixed Rate Cash ISA |
2.3% |
£1,000 |
Yes |
|
Shawbrook Bank Three-Year Fixed Rate Cash ISA |
2.05% |
£5,000 |
Yes |
|
Virgin Money Fixed Rate Cash ISA |
2% |
£1 |
Yes |
When it comes to three-year fixed rate deals PNBIL once again is the most competitive account. However, if you are willing to lock in for slightly longer, the State Bank of India 1,000 Days Cash ISA pays the same 2.3%. You’ll need a £5,000 deposit to open an account though.
Four-year fixed rate Cash ISAs
|
Account |
Interest rate AER |
Minimum deposit |
Transfers allowed? |
|
Punjab National Bank (International) Limited Fixed Rate Cash ISA |
2.5% |
£1,000 |
Yes |
|
Coventry BS Fixed Rate ISA |
2.1% |
£1 |
No |
PNBIL also offers the best returns over four years. The next best deal from Coventry Building Society pays 0.4% less and only permits new subscriptions.
Five-year fixed rate Cash ISAs
|
Account |
Interest rate AER |
Minimum deposit |
Transfers allowed? |
|
Punjab National Bank (International) Limited Fixed Rate Cash ISA |
2.7% |
£1,000 |
Yes |
|
State Bank of India Online Five-Year Cash ISA Fixed Deposit |
2.5% |
£5,000 |
Yes |
|
Metro Bank Five-Year Fixed Rate Cash ISA |
2.25% |
£1 |
Yes |
PNBIL does it again over five years, topping the best buys by a considerable margin. The next best deal pays 0.2% less and requires a bigger £5,000 minimum deposit to get started.
To stay up to date with the latest Cash ISA best buy rates, keep The best Cash ISAs for the 2015/16 tax year bookmarked.
Is my money safe?
Savers looking for a decent home for their cash are increasingly having to look to less well-known names to secure better rates.
But a fear of the unknown is natural, especially when it comes to our money.
However, PNBIL is just as safe as any other UK institution.
It’s authorised and regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
If you have a problem you can complain to the Financial Ombudsman Service (FOS).
And most importantly PNBIL is part of the UK Financial Services Compensation Scheme (FSCS), which protects deposits of up to £85,000 per individual per institution in the UK.
So if you’re looking to use your 2015/16 Cash ISA allowance or rescue old ISAs from zombie accounts paying paltry returns, PNBIL is a pretty safe bet.
Do you save with PNBIL? Would you recommend it? Let us know by leaving a comment below.