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The Tax Saving Scheme by the State Bank of India has been designed to help individuals and HUFs save money on tax and derive effective yields. It can either be a single account or a joint account, and customers must be Indian residents to gain eligibility to apply for the same.
To avail the tax saving scheme, the State Bank of India has laid down some criteria that applicants must match. For instance, you must be residing in India and can be either an individual, or a Karta of a Hindu Undivided Family. All applicants are required to have a PAN (Permanent Account Number) for income tax purposes.
|
Account Type |
Term Deposit Account / Special Term Deposit Account (Single Account) |
|
Deposit Amount |
The minimum amount of money that can be deposited is Rs.1,000 or multiples thereof The maximum amount of money that can be deposited must not exceed Rs.1,50,000 in a year |
|
Rate of Interest |
As applicable to term deposits, with the lowest being 5.25% and the highest being 7.5%. Senior citizens get an extra 0.5% return on their investment. |
|
Period |
The minimum tenor for this scheme is 5 years and the maximum tenor is 10 years. Premature withdrawal is now allowed before the expiry of five years since the date on which the scheme was issued. |
|
TDS |
Tax benefits provided under section 80C of Income Tax Act, 1961 |
|
Loan against the scheme |
Not available (The term deposit or standard term deposit cannot be pledged as security to avail the loan) |
|
Nomination (if any) |
Available. Only one person can be nominated by an individual, but joint accounts can nominate more than one person with common consent. |
Following are the interest rates applicable to customers who deposit amounts up to Rs.1 crore.
|
Tenors |
Existing rate for Public |
Revised for Public w.e.f 05.10.2015 |
Existing rate for Senior Citizens |
Revised rate for Senior Citizens w.e.f 05.10.205 |
|
7 days to 45 days |
5.50% |
5.25% |
5.75% |
5.50% |
|
46 days to 179 days |
6.75% |
6.50% |
7% |
6.75% |
|
180 days to 210 days |
7% |
6.75% |
7.25% |
7% |
|
211 days to 365 days |
7.25% |
7% |
7.50% |
7.25% |
|
365 days to 455 days |
7.5% |
7.25% |
7.75% |
7.50% |
|
456 days to 730 days |
7.75% |
7.50% |
8% |
7.75% |
|
Two years to three years |
7.75% |
7.50% |
8% |
7.75% |
|
Three years to five years |
7.25% |
7% |
7.50% |
7.25% |
|
Five years to ten years |
7.25% |
7% |
7.50% |
7.25% |
*Interest rates apply as of December 1, 2015 and are subject to the bank’s discretion and can be changed at any time in the future.
No. Customers are not allowed to withdraw funds before at least five years have passed since the date on which the scheme was issued.
No. The scheme cannot be pledged as security to avail any kind of loan.
Yes. Customers are allowed to make one nomination if they are registered as individuals. However, the number of nominations can increase to two if it is opened as a joint account, provided that there is common consent from all the members.
The Tax Saving Scheme from the State Bank of India has a minimum term of five years and a maximum tenor of ten years.
Yes. All applicants, whether individuals or Kartas of Hindu Undivided Families are expected to have their PAN (Permanent Account Number).
Useful Information on SBI Fixed Deposit
Other Fixed Deposit Schemes Offered by SBI
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