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Fixed Deposit BYTES FROM OUR KITCHEN

SBI Tax Saving Fixed Deposit (FD) Scheme

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.

Interest rates on SBI tax saving FD

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

Features and benefits of SBI tax saving FD

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

Here are the features of SBI tax saving FD

A tax benefit of up to Rs.1.5 lakh can be claimed on this type of FD. This means that a deduction of this amount will be made from your gross total income to arrive at the total taxable income.
Tax saving FDs can be opened by Indian residents and members of a HUF
It is mandatory to furnish PAN card details while opening the FD account along with other relevant documents
All tax saving FDs come with a certain lockin period. In this case, the minimum tenure for the SBI tax saving FD is 5 years, while the maximum is 10 years
Please note that Tax Deducted at Source (TDS) is applicable to all FDs at the rate of 10% if the interest that is earned on a deposit is more than Rs.10,000 in a particular financial year
There can be no premature withdrawal made in this type of FD until the completion of the deposit tenure

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 interest calculator

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:

Interest rate
Principal amount invested
Tenure of investment
Type of interest compounding frequency

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

Is it required to have an active internet banking account to open an SBI tax saving FD online?
Yes.
Are tax saving FDs exempt from tax?
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.
What is the cut off time for opening a tax saver FD online in SBI?
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.
Is it possible to make a nomination online?
Unfortunately, this cannot be done online. You will have to visit the branch physically to add a new nominee.
Is it possible to open an online deposit in the name of another person ?
This is not possible. In case, you want to do the same, please make a visit to the nearest branch.
Is it possible to close the term deposit account online?
This will not be possible in case of tax savings schemes because they come with a certain predetermined lockin period.
Can I choose a tenure of 10 years for this type of deposit?
Yes. You can choose a tenure that ranges anywhere from 5 years to 10 years.
Is it possible to open joint FDs?
Yes, this can be done without any hassle.

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News About SBI Tax Saving Fixed Deposit (FD) Scheme

A Brief Look into the SBI Tax Saving Scheme, 2006 and SBI Flexi Deposit Scheme
One of the most popular banks in the country, State Bank of India (SBI) offers a wide range of investment opportunities to the general public. The term deposits and other saving schemes come with a promise of high returns at competitive interest rates. SBI Tax Savings Scheme, 2006 and SBI Flexi Deposit Scheme were launched by the bank to provide an opportunity for investors to boost their savings.

Key features of the SBI Tax Savings Scheme, 2006

The SBI Tax Savings Scheme, 2006, is a variant of a term deposit that can be availed by any Indian resident or the Karta of the Hindu undivided family. The prerequisite to apply for this scheme is to have a Permanent Account Number (PAN). The limit for deposit per financial year lies within Rs.1,000 and Rs.1,50,000. The minimum lock-in period for the deposit is 5 years and the maximum tenure is 10 years. An account holder cannot prematurely withdraw funds before 5 years. The account holder can enjoy tax benefits of up to Rs.1.5 lakh as prescribed in the section 80C of the Income Tax Act, 1961. SBI provides nomination facility for this scheme. However, they cannot apply for a loan against the deposit.

Main features of the SBI Flexi Deposit Scheme

The SBI Flexi Deposit scheme is similar to the Recurring Deposit (RD). However, unlike an RD, where an investor has to make regular monthly deposits of a fixed amount, Flexi Deposit lets you alter the instalments. Flexi Deposit scheme allows variations in instalments with respect to frequency and size of the deposit. The lower limit of the instalment is Rs.500 and the maximum number of instalments is 10. In a financial year, the amount deposited must be within the range of Rs. 5,000 and Rs.50,000. The account holder can base the frequency of the instalments upon their frequency. The tenure lies within 5 years and 7 years. The interest income earned is subject to Tax Deducted at Source (TDS) as mandated by the Income Tax Act, 1961. SBI allows loans to be taken against the Flexi Deposit and a nomination facility as well. A penalty of Rs.50 will be charged for non-deposit instalments. An account holder can avail for premature withdrawal at an interest rate lower by 0.50% of the original rate.

16 August 2018

SBI Tax Saving Scheme Reviews

Write a Review

Fixed Deposit
"Trusted Saving with SBI"

0.5 3.0/5 "Satisfactory"

All we know, SBI is a government bank, that is the reason I have availed fixed deposit from them. As per the current financial year they are providing the interest around 6%, I opened the account through online, but for the closure I think I need to visit the bank.

Was this review helpful? 4

SOUVIK MUDI , pune
Reviewed on Feb 25, 2019
Fixed Deposit
"Excellent service"

0.5 5.0/5 "Blown Away!"

I have taken my fixed deposit with STATE BANK OF INDIA, their service is good they provide me good interest rate,my deposit is good in growth, and I am making payment through on line like it get auto debited, and till now experience with this bank was good.

Was this review helpful? 10

SATHEESH KUTTIYIL SREEDHARAN , hyderabad
Reviewed on Feb 20, 2019
Fixed Deposit
"Good service"

0.5 4.0/5 "Great!"

I have fixed deposit with SBI,As per the bank norms rate of interest is up to 6.88%. I opened the account through bank, There is no maturity period, like it is no fixed period, i can keep on deposit whenever i want and i take whenever i need it is unlimited, Their service is good.

Was this review helpful? 6

RAMANNA GANGAMMA , bangalore
Reviewed on Feb 14, 2019
Fixed Deposit
"Good saving for future"

0.5 4.0/5 "Great!"

SBI FD account is good, 2 months back I opened this account through offline, I have invested some amount its good, the interest rate is around 8% per annum. The customer support is very good . I can access account through online banking its fine.

Was this review helpful? 3

MANJEET KUMAR SAHU , bangalore
Reviewed on Feb 09, 2019
Fixed Deposit
"Safe and secured investment"

0.5 5.0/5 "Blown Away!"

Currently FD interest rate is around 6.5% for per annum. I deposited one time amount of Rs. 2 lakhs for one year, I have activated the service through online, I have netbanking option to track the details, before expiry if we withdraw the amount but there will be interest various applicable.

Was this review helpful? 4

KASHI VENKATESH PAVAN , bangalore
Reviewed on Feb 07, 2019
Fixed Deposit
"Good for savings"

0.5 4.0/5 "Great!"

I have fixed deposit with SBI, I deposited one time amount of Rs. 2 lakhs. As per the bank norms rate of interest is 11.50%, I opened the account through bank, on time they activated the fixed deposit. There is no proper coordination with the staff end.

Was this review helpful? 14

NAZEERUDDIN MOHD , hyderabad
Reviewed on Feb 01, 2019
Fixed Deposit
"Need quick service"

0.5 2.0/5 "Expected more"

I have invested Rs. 2 lakhs in SBI fixed deposit, the interest will be calculated 7.5% for per year. They don't have any fee for account maintenance. I went to the branch to open fixed deposit but they taken 2 days of time to activate because they collected lots of documents for FD account opening.

Was this review helpful? 9

BOYAPATI ANIL KUMAR , hyderabad
Reviewed on Jan 21, 2019
Fixed Deposit
"Average service"

0.5 3.0/5 "Satisfactory"

I have invested the fixed deposit with State bank of India.the services which they had provided so far has been average.The interest rate with them has been good and the growth with the investment has also been good.maturity period going to get renewal.one it will get mature will do renew of that deposit,there overall service is quite average.

Was this review helpful? 5

SUYAS SRIVASTAVA , bhubaneshwar
Reviewed on Jan 21, 2019
Fixed Deposit
"Good FD account"

0.5 5.0/5 "Blown Away!"

I have invested the fixed deposit with State bank of India. Since the branch is nearest by my home and they have given me a locker facility hence i have chosen the fixed deposit with SBI. Overall, I'm very much satisfied with the services with SBI.

Was this review helpful? 7

SREENIVASARAO VUTHARKAR , hyderabad
Reviewed on Jan 18, 2019
Fixed Deposit
"Best Investment plan"

0.5 5.0/5 "Blown Away!"

I have taken fixed deposit account in State Bank Of India . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .

Was this review helpful? 8

SEEMABEN BHAVINKUMAR PATEL , ahmedabad
Reviewed on Dec 29, 2018
Fixed Deposit
"Very Good Service"

0.5 4.0/5 "Great!"

I had made this investment pretty long time back and the services which they had provided so far has been good. The interest rate with them has been good and the growth with the investment has also been good. Their customer support has been helpful in guiding with everything.

Was this review helpful? 11

VA , bangalore
Reviewed on Dec 14, 2018
Fixed Deposit
"Good Investment Plan"

0.5 4.0/5 "Great!"

I have taken fixed deposit account in STATE BANK OF INDIA . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .

Was this review helpful? 9

JAYESHBHAI ABEALEBHAI SHIYAL , mumbai
Reviewed on Dec 12, 2018
Fixed Deposit
"Average service"

0.5 3.0/5 "Satisfactory"

I had a Fixed Deposit account with SBI and my experience was average, an amount of Rs 20000 is paid as a fixed amount. Customer service was not up to the mark with SBI. I am not aware of the returns in this Fixed deposit account.

Was this review helpful? 9

JOY SAHA , kolkata
Reviewed on Nov 20, 2018
Fixed Deposit
"Good returns"

0.5 5.0/5 "Blown Away!"

I had a Fixed Deposit account with SBI and my experience was good, an amount of Rs 1 lac is paid as a fixed amount. Customer service was very good and they explained all the terns and conditions. I am satisfied with the returns in this Fixed deposit account.

Was this review helpful? 8

AMIT AMIT , gurgaon
Reviewed on Nov 20, 2018
Fixed Deposit
"Good Investment"

0.5 5.0/5 "Blown Away!"

I have fixed deposit in SBI, the interest rate is good around 8.9% for the period of one year. I can invest the min of Rs. 500 to 15 lakhs, I have not tried reaching them because everything is going well. I get message every time after making a payment on month basis.

Was this review helpful? 11

SUPRATIM GHOSH , hyderabad
Reviewed on Nov 12, 2018
Fixed Deposit
"Average Investman plan"

0.5 2.0/5 "Expected more"

I have taken Fixed deposit account from the state bank of India . There is no additional charges for the account. It is short term investment plan for 5 years but am not satisfied with the rate of i9nytrest which they are giving . I used to get income tax benefits . Customer service and response is not that much good .

Was this review helpful? 6

VIKAS KHULLAR , bangalore
Reviewed on Nov 10, 2018
Fixed Deposit
"Satisfactory"

0.5 5.0/5 "Blown Away!"

I have a fixed deposit account with State Bank of India. The experience is fine and there are no hassles to open this account. The interest I earn on this account is also satisfactory. The customer support and response is good at the bank. It has been a smooth process.

Was this review helpful? 1

BRIJESH KUMAR , bangalore
Reviewed on Oct 27, 2018
Fixed Deposit
"Average service"

0.5 3.0/5 "Satisfactory"

I have a Fixed Deposit with SBI from last 3 years, i am satisfied with the returns of Fixed Deposit which is 8%-9%. The maturity period for Fixed Deposit is 5 years. Customer support was very good and they explained all the terms and conditions..

Was this review helpful? 11

HARIBABU BUDDUBDALA , secunderabad
Reviewed on Oct 19, 2018
Fixed Deposit
"Good in all"

0.5 3.5/5 "Pretty good"

I hold a fixed deposit account with State Bank of India. I had to visit the bank to open this account, it is a tedious process as it was not online. I had to fill in the application for the same. In all there has been a very good experience. Good overall.

Was this review helpful? 3

PRAVEEN SHENDE , bangalore
Reviewed on Oct 18, 2018
Fixed Deposit
"Good service"

0.5 4.5/5 "Excellent!"

I have a Fixed Deposit account with SBI from last 4 years, the maturity period for this FD is 18 years. I invested an amount of Rs 5 lacs in Fixed Deposit account. Customer service was good with SBI and i get good returns of 8% after the maturity period.

Was this review helpful? 14

RANGANJANEYULU N , hyderabad
Reviewed on Oct 01, 2018

Disclaimer

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.