If you want to get a tax benefit, you can open a Tax Saving Fixed Deposit (FD). The State Bank of India (SBI) offers the SBI Tax Saving Scheme that offers tax benefit for up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. This is a type of FD that comes with a lock in period of 5 years and comes with a range of other benefits. Fixed Deposits are one among the most popular investments used for saving tax as it offers security and a competitive rate of return on investment. It is very easy to open an SBI tax saving scheme FD online if you are an existing SBI customer. All you have to do is log in to your internet banking account and follow the given set of instructions. This is also a good investment option for senior citizens because the rate of interest is higher.
An interest rate of 6% is paid on SBI tax saving FDs for all individuals. Senior citizens, on the other hand, will be paid interest at the rate of 6.5%. These interest rates are applicable to all deposits that are less than Rs.1 crore.
| Tenure | Interest rate for individuals | Interest rate for senior citizens |
|---|---|---|
| 5 to 10 years | 6% | 6.5% |
*Interest rates are subject to change at the discretion of the bank
Summary of SBI Tax Saving Scheme FD features:
| S.no. | Criteria | Feature |
|---|---|---|
| 1. | Minimum deposit | Rs.1,000 |
| 2. | Maximum deposit | Rs.1.5 lakh |
| 3. | Tenure | 5 years to 10 years |
| 4. | Premature withdrawal | Not allowed |
| 5. | Loan facility | Not available |
It is very easy to calculate the interest that will be earned on an SBI tax saving FD. All you have to do is to use the FD interest calculator to find out the maturity amount that you will get on your investment. This tool can be very useful to help you decide how much you need to invest and learn how much you will actually earn. The following are the details required to calculate the interest you will earn on an SBI tax saving FD:
| Eligibility to Open a FD |
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| Documents Required |
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| Benefits of a SBI tax saving FD |
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Yes.
The principal amount is exempt from tax but the interest earned on the FD will be subject to tax if the interest gained is more than Rs.10,000 in a financial year.
It is recommended that you open the FD between 8.00 a.m. and 8.00 p.m. In case the FD is opened outside these hours, the request will be processed during the next working day.
Unfortunately, this cannot be done online. You will have to visit the branch physically to add a new nominee.
This is not possible. In case, you want to do the same, please make a visit to the nearest branch.
This will not be possible in case of tax savings schemes because they come with a certain predetermined lockin period.
Yes. You can choose a tenure that ranges anywhere from 5 years to 10 years.
Yes, this can be done without any hassle.
Useful Information on SBI Fixed Deposit
Other Fixed Deposit Schemes Offered by SBI
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