SBI Tax Saving Fixed Deposit (FD) Scheme
The SBI Tax Saving Fixed Deposit Scheme offers deposits the opportunity to earn an attractive rate of interest on lump-sum amounts up to Rs.1.5 lakh while also availing tax deductions of up to Rs.1.5 lakh (including other exemptions in this category as per the Income Tax Act, 1961).
Senior citizens can avail 0.50% additional interest on their fixed deposit. There is a 5-year lock-in period for this due to the tax benefits.
State Bank of India (SBI) offers the Tax Saving Fixed Deposit Scheme, 2006, with which you can get tax exemptions on your investments. The scheme comes with a lock-in period of 5 years. Let's know a bit more about this plan.
Interest Rates on SBI Tax Saving FD
You can deposit a minimum of Rs.1,000 and a maximum of Rs.1.5 lakh with this scheme. The lock-in period is 5 years before which you cannot withdraw funds from your FD account. Note that the interest rates are subject to change as per the discretion of the bank.
Tenure | Interest Rate for General Public (p.a) | Interest Rate for Senior Citizens (p.a) |
5 years | 6.50% | 7.00% |
Features and benefits of SBI Tax Saving FD
Summary of SBI Tax Saving Scheme FD features:
Account type | Term deposit/Special term deposit |
Amount | Minimum: Rs.1,000 Maximum: Rs.1.5 lakh |
Period | Minimum: 5 years Maximum: 10 years |
Interest rate |
|
Premature withdrawals | Not Available |
Loan | Not Available |
Nomination | Available |
*Interest rates are subject to change at the discretion of the bank. These Interest rates are with effect from 15 February 2023.
SBI Tax Saving FD Interest Calculator
It's recommended to calculate your SBI FD interest rate before hand so that you know how much returns you will receive in the future. In order to do that, you can use any online fixed deposit calculator. The easy-to-use online tool lets you calculate the maturity amount in no time. All you need to do is enter the relevant details, including the deposit term, investment amount, and the rate of interest.
How to open an SBI tax saving FD online
- Step 1: Log in to SBI online banking using your username and password
- Step 2: Go to the home page, navigate to the top menu and click on 'e-fixed deposit'
- Step 3: Now proceed to click on the 'e-TDR/e-STDR under Income Tax Saving Scheme' option and hit the 'proceed' button
- Step 4: Choose the account from which the amount should be debited, type in the FD amount and if you are a senior citizen click on the 'Senior Citizen' option
- Step 5: Proceed to choose if you want a cumulative (STDR) or a non-cumulative (TDR) FD, choose tenure, give maturity instruction, accept terms and conditions, and click on 'Submit'
- Step 6: A confirmation message will be displayed on screen
SBI Tax Saving FD Scheme Eligibility
The eligibility criteria for opening an account under the SBI tax saving FD scheme is:
- Indian citizens over the age of 18
- Minors along with an adult
- Hindu Undivided Family (HUF)
Documents Required to Open an SBI Tax Saving FD Scheme
The documents required to open an SBI tax saving FD schemes are:
- SBI Application form
- 2 copies of depositor's photograph
- Address proof
- Identity proof
- Aadhaar card details
- PAN card copy/ Form 60 or 61
Benefits of SBI Tax Saving FD Scheme
The various benefits of SBI tax saving FD scheme is:
- Automatic renewal option after maturity
- Nomination facility
- Online operation for the FD account
FAQs on SBI Tax Saving Fixed Deposit Scheme
- What is the minimum tenure for term deposit under this scheme?
The minimum tenure is 5 years within which you won't be able to withdraw funds from your account. However, after 5 years you may choose to close your account pre-maturely. But this has to be done from the home branch. Note that the maximum deposit period is 10 years.
- Who is eligible for this scheme?
Residents of India or any undivided Hindu families with a Permanent Account Number (PAN) are eligible for this facility.
- What type of accounts can I use to open my tax-saver account?
You can use savings, current, or overdraft account to open your deposit account. However, make sure that the account is an active one.
- In case of joint accounts, are both the parties entitled to get tax deduction?
No, only the first holder is eligible for tax exemption under Section 80C.
- Can I transfer the maturity amount to any of my accounts?
No, you won't be able to do that. The maturity amount can only be transferred to the account from where the FD investment took place.
- Is it possible to generate a receipt for my tax-saver account through internet banking?
No, you have to collect your account receipt from the home branch.
- What is the minimum and maximum amount I can deposit in a year?
You can deposit a minimum of Rs.1,000 (and in multiples of Rs.100 thereafter) and a maximum of Rs.1.5 lakh in a year.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2025 BankBazaar.com.