• SBI Tax Saving Fixed Deposit (FD) Scheme

    Investments are one of the best ways to secure your future and lead a financially independent life. Among other investment vehicles like real estate and stocks, putting your money in fixed deposits (FD) is a much safer option to go for. Additionally, there are certain FD schemes that let you enjoy tax exemptions on the amount.

    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

    General depositors can get 6.85% p.a. as interest whereas senior citizens can get 7.35% p.a. 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.

    *Interest rates are subject to change at the discretion of the bank

    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

    • 6.85 p.a. (for general citizens)
    • 7.35% p.a. (for senior citizens)

    Premature withdrawals

    Withdrawal not allowed before the lock-in period of 5 years

    Loan

    Loan against this FD isn't available

    Nomination

    Available

    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

    Key Information before Opening an SBI Tax Saving FD Scheme

    Eligibility to Open a FD
    • Individual
    • HUF
    Documents Required
    • SBI Application Form
    • Depositor’s photograph (2 copies)
    • Identity proof & Address proof as per KYC Norms
    • PAN Card copy/ Form 60 or 61
    • Aadhaar Card Details
    Benefits of a SBI tax saving FD
    • Nomination facility
    • Automatic renewal option after maturity
    • Online operation for the FD account

    FAQs

    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 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.

    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.

    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.

    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 a maximum of Rs.1.5 lakh in a year.

    *All amounts, tenures, repayment requirements, interest rates, charges, fees, ceilings, requirements, criteria, exclusions, terms and conditions are as of April, 2019

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