SBI Tax Saving Fixed Deposit Scheme

State Bank of India (SBI) offers the SBI Tax Saving Scheme that offers tax benefits of up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act. This particular FD comes a lock-in period of five years and a range of other benefits. Fixed Deposits are the most popular investments that are used for tax savings as it offers security and a competitive rate of return on investment. The article takes a closer look at the features of the SBI Tax Saving Fixed Deposit Scheme.

Interest Rates on SBI Tax Saving FD

An interest rate of 6% is paid on SBI tax saving FDs for all individuals. Senior citizens can avail an interest rate of 6.5%. These interest rates apply to every deposit that are below Rs. 1 crore.

Features of SBI Tax Saving FD

A tax benefit up to Rs. 1.5 lakhs can be claimed from this type of FD.
The tax saving FDs can be opened by Indian residents and members of a HUF.
It is mandatory to furnish PAN details at the time of opening the FD account with other required documents.
The minimum tenure of the SBI tax saving FD is five years while the maximum period is ten years.
The Tax Deducted at Source (TDS) applies to every FDs at the rate of 10% if the interest that is earned on a deposit scheme is above Rs. 10,000 in a financial year.
There is no facilitation for premature withdrawal in this type of FD till the completion of the deposit tenure.

Benefits of SBI Tax Saving FD

Here are the benefits that can be availed from the SBI Tax Saving Fixed Deposit Scheme.

Automatic renewal option after maturity
The online operation for FD account

Eligibility Criteria

The SBI Tax Saving Fixed Deposit Scheme applies to both individuals and HUF.

Application Procedure

Given below are the step-by-step online procedure to apply for this scheme. Step 1: Log in to SBI online banking The user has to log in to SBI online banking using the username and password. Step 2: Click e-fixed Deposit In the home page, the user has to navigate to the top menu and then click on 'e-fixed deposit'. Step 3: Click on e-TDS/ e-STDR The user then has to click on the 'e-TDR/ e-STDS' that is under the Income Tax Saving Scheme option and then continue to click the 'proceed' button. Step 4: Choose the Account The user has to choose the account from which the amount should be debited, type in FD amount and if required, click on the 'Senior Citizen' option. Step 5: Terms and Conditions The user has to choose the appropriate cumulative (STDR) or a non-cumulative (TDR) FD, choose the required tenure, give maturity instructions, accept the terms and conditions and then click on 'Submit'. Step 6: A Confirmation message A confirmation message is then displayed on the screen.