The Tax Saving Fixed Deposit of SBI allows individuals to earn a competitive rate of interest on lump-sum contributions while simultaneously providing tax benefits under Section 80C of the Income Tax Act. This type of fixed deposit comes with a lock-in period of five years with a maximum investment amount upto Rs.1.5 lakhs.
The post covers information on the features of SBI Tax Saving FD, eligibility, application process and the latest SBI tax saving FD interest rates.
Interest Rates on SBI Tax Saving FD
ou 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 of Tax Saving Fixed Deposit of SBI
Investment Amount | The minimum investment you can make in the account is Rs. 1,000, and the maximum investment that can be made in the account is Rs. 1.5 lakhs. |
Period of Investment | The tenure of investment in the scheme is from 5 years to 10 years. |
Rates of Interest | The SBI tax saving FD interest rates as of 2024 are 6.50% for general citizens and 7.00% for senior citizens. |
Premature Withdrawal | You cannot prematurely withdraw the funds. |
Loan Against FD | You do not have the facility to avail of a loan against this scheme. |
Nomination Criteria | You can nominate a person during the application. |
Eligibility Criteria for Tax Saving Fixed Deposit of SBI
- The applicant should be an Indian citizen and over 18 years of age.
- Hindu Undivided Families (HUFs) are also eligible for SBI Tax Saver FD.
Documents Required to Apply for SBI Tax Saving Fixed Deposit
- Application form.
- Identification and evidence of address (Passport, Voter Card, Driver’s License, Aadhaar Card, NREGA Card, and PAN Card are some of the acceptable documents).
- 2 passport size photographs.
Application Procedure
Step 1: Log in to SBI online banking The user has to log in to SBI online banking using the username and password.
Step 2: Click e-fixed Deposit In the home page, the user has to navigate to the top menu and then click on ‘e-fixed deposit’.
Step 3: Click on e-TDS/ e-STDR The user then has to click on the ‘e-TDR/ e-STDS’ that is under the Income Tax Saving Scheme option and then continue to click the ‘proceed’ button.
Step 4: Choose the Account The user has to choose the account from which the amount should be debited, type in FD amount and if required, click on the ‘Senior Citizen’ option.
Step 5: Terms and Conditions The user has to choose the appropriate cumulative (STDR) or a non-cumulative (TDR) FD, choose the required tenure, give maturity instructions, accept the terms and conditions and then click on ‘Submit’.
Step 6: A Confirmation message A confirmation message is then displayed on the screen.
FAQs
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.
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.