SBI Tax Saving Fixed Deposit Scheme

SBI Tax Saving Fixed Deposit Scheme allows depositors to earn a competitive rate of interest on lump-sum contributions up to Rs.1.5 lakh while simultaneously benefiting from up to Rs.1.5 lakh in tax deductions (including other exemptions in this category as per the Income Tax Act, 1961). On their fixed deposit, senior persons can earn an extra 0.50% interest. As for the tax benefits - there is a 5-year lock-in period. The Tax Saving Fixed Deposit Scheme, 2006, offered by the State Bank of India (SBI), allows you to earn tax exemptions on your deposits. The program has a five-year lock-in period.

Attributes of the Tax Saver Fixed Deposit SBI

In the table below - mentioned are the features of the tax saver Fixed Deposit of SBI:

Application Procedure for the SBI Tax Saving Scheme

Given below is the step-by-step process to apply for the scheme online:

Step 1: Log in to the Online SBI Banking Portal

The user would have to log on to the SBI online banking with a username and password.

Step 2: Click on e-fixed Deposit.

On the home page, the user would go to the top menu and then click on the e-fixed deposit.

Step 3: Click on the option e-TDR/ e-STDR

The user would now have to click on e-TDR/ e-STDR, which will be under the Income Tax Saving scheme option, and then continue to click the proceed option.

Step 4: Select the Account

The users need to select the account from where the amount needs to be debited, then type on FD amount and if needed - also click on the account.

Step 5: The Terms and Conditions

The user needs to select the right cumulative or non-cumulative FD, choose the needed tenure, accept the terms and conditions, give maturity instructions and then click on the option that says submit.

Step 6: The Confirmation Message

The confirmation message will be displayed on the screen.

Tax Saver Fixed Deposit SBI Interest Rate

The interest rates that are offered in retail domestic term deposits for less than Rs. 2 crores are mentioned below:

Terms and Conditions of the Scheme

Based on the official portal of SBI, the terms and conditions applicable for the SBI Tax Saving scheme are as the following:

• No term deposit will be encashed before the expiry of the lock-in period of five years from the date of that receipt.

• After completing the five years tenure, premature closure would be allowed according to the terms and conditions applicable to the term deposit.

• In the case of death of the account holder, the nominee, legal heirs, could withdraw deposits at any time before or after maturity.

• In the case of death of the first account holder in the joint account, the other holder would be entitled to withdraw the deposit before maturity. The bank will pay interest at the rate that is applicable for the period the deposit has run without any penalty.

Eligibility Criteria

Individuals and HUFs can participate in the SBI Tax Saving Fixed Deposit Scheme.

Documents Required

Individuals who wish to open an SBI Tax Saver Fixed Deposit must present identification and evidence of address. Passport, Voter's Identity Card, Driver's License, Aadhaar Letter/Card, NREGA Card, and PAN Card are some of the documents that may be approved. Individuals should contact SBI's customer service department for more information on the documentation needed to open a tax-saver term deposit account.

The Benefits of Investment in the SBI Tax Saver

The following are the advantages of the SBI Tax Saving Fixed Deposit Scheme.

• Option for automatic renewal at the end of the term.
• The FD account's online operation.