SBI Tax Saving FD interest rates are competitive, making it an attractive option for those seeking higher returns on their fixed deposits.
In the article, we will dive deeper into the specifics of SBI tax saving FD interest rates, helping you make an informed decision about your financial future.
This scheme comes with a lock-in period of 5 years, during which you cannot withdraw your funds.
For the general public, the interest rate on Tax Saving FD with SBI is 6.50% per annum, while senior citizens enjoy an even higher rate of 7.50% per annum.
The current interest rate on tax saving FD in SBI for 5 years is:
|SBI Tax Saving FD Interest Rates
|General Public (p.a)
|Senior Citizens (p.a)
The standout feature of SBI’s Tax Saving FD is the tax benefits it offers. Investors can deposit a lump-sum amount of up to Rs. 1.5 lakh and simultaneously avail tax deductions on the same amount under Section 80C of the Income Tax Act, 1961. This means that you can reduce your taxable income by up to Rs. 1.5 lakh, leading to significant tax savings.
Here are other key features of this scheme:
- Account Types: Choose between Term Deposit (TD) or Special Term Deposit (STD) accounts.
- Deposit Period: Minimum of 5 years and a maximum of 10 years
- Deposit Amount: The minimum deposit is Rs. 1,000 (Rs. 10,000 for senior citizens) with subsequent increments of Rs. 100.
- Tax Deduction at Source (TDS): Applicable at the prevailing rate. Depositors can submit Form 15G/15H for tax deduction exemption.
- Nomination Facility: Available for individuals to safeguard and manage investments.
- Loan Facility: Unavailable during the 5-year lock-in period
- Premature Withdrawal: No premature withdrawals are allowed before 5 years, except in the unfortunate event of the depositor’s demise.
Here’s a step-by-step guide to help you open SBI Tax Saving Fixed Deposit in a few simple steps:
- Access your SBI online banking account using your username and password.
- On the home page, go to the top menu and click on ‘e-fixed deposit.’
- Click on ‘e-TDR/ e-STDR,’ located under the ‘Income Tax Saving Scheme’ option and click on ‘Proceed.’
- Select the bank account from which you wish to debit the FD amount. Enter the FD amount as needed.
- Decide between a cumulative or non-cumulative FD, choose the desired tenure, accept the terms and conditions, provide maturity instructions, and finally, click ‘Submit.’
- A confirmation message will be displayed on your screen, confirming the successful creation of your SBI Tax Saving FD.
To open an account under the SBI Tax Saving FD scheme, you need to meet certain eligibility criteria:
- Indian citizens aged 18 years or above, either as individuals or as the Karta of a Hindu Undivided Family (HUF), must possess a valid Income Tax Permanent Account Number (PAN).
- Minors can open an account along with an adult
Make sure you have the following documents ready to open a Tax Saver Fixed Deposit with SBI:
- SBI Application Form: Complete the provided application form given by SBI.
- Photographs: Two passport-sized photographs of the account holder.
- Address and Identity Proof: Submit an accepted identity proof document, such as your Passport, Voter’s ID, Driver’s License, Aadhaar Card, NREGA Card, or PAN Card.
- Aadhaar Card Details: Include your Aadhaar card details, often needed for KYC compliance.
- PAN Card Copy/ Form 60 or 61: Submit a copy of your PAN card or Form 60 or 61 for tax-related purposes.
Here’s how you can calculate the returns and interest earned on your SBI Tax Saving FD:
- Visit SBI’s official website.
- Input the investment amount, deposit period, and annual SBI rate of interest on Tax Saving FD.
- The calculator will quickly compute your maturity amount and estimated returns, helping you plan your Tax Saving FD effectively.
In summary, the attractive SBI Tax Saving FD interest rates offer a secure and tax-efficient way to grow your savings. With added features like higher interest rates for senior citizens, nomination facilities, automatic renewal, and online account management, it’s a user-friendly choice for a financially secure future.
SBI Tax Saving FD Interest Rates FAQ’s:-
For the general public, the current interest rate on Tax Saving FD in SBI is 6.50% p.a., and senior citizens receive a higher interest rate of 7.00% p.a. on their deposits.
After completion of the 5-year lock-in period, you can close your SBI Tax Saver FD, but you must do so through your home branch
SBI’s tax-saving FD falls under Section 80C of the Income Tax Act, of 1961. This allows you to claim a tax deduction of up to ₹1.5 lakh for your investments in a tax-saving FD during a financial year.
No, SBI Tax-saving FDs have a mandatory 5-year lock-in period, which means premature withdrawals are not available.
No, a loan facility is not available during the lock-in period of five years.