(Also Read: How To Pay SBI Credit Card Bill And Get Credit Limit Restored Instantly)
Given below are details of SBI's tax saving scheme:
Eligibility for SBI's tax saving scheme
Resident Indians for himself/ herself as an individual or in the capacity of the Karta of the Hindu undivided family, having an income tax Permanent Account Number (PAN), can invest in the plan.
(Also Read: Here Are SBI's New Charges For Keeping Insufficient Balance In Savings Account)
Deposit required for SBI's tax saving scheme
A minimum Rs. 1,000 or multiples thereof are required to open this account. The maximum deposit cannot exceed Rs 1,50,000 in a year.
Type of account in SBI's tax saving scheme
SBI opens a term deposit (TD) account / special term deposit (STD) account. Term deposits are also known as fixed deposit accounts.
Tenure of SBI's tax saving scheme
The minimum tenor is five years and the maximum is 10 years.
(Also Read: Recurring Deposit (RD) Accounts: Post Office Vs SBI)
Interest rates offered on SBI's tax saving scheme
The interest rate offered is the same as that of fixed deposit accounts. On a 5-year tenure, SBI tax saving scheme will fetch you an interest rate of 6.75 per cent.
Tax benefits of SBI's tax saving scheme
SBI's tax saving scheme provides tax benefits under section 80C of the Income Tax Act, 1961.
(Also Read: Latest Bank FD Interest Rates: SBI, ICICI Bank, HDFC Bank, Canara Bank)
Premature withdrawal on SBI's tax saving scheme
No term or fixed deposit shall be encashed before the expiry of five years from the date of its receipt.
Loan facility against SBI's tax saving scheme
There is no loan facility available. The fixed deposit or special fixed deposit cannot be pledged to secure loan or as security to any other asset.
Nomination facility on SBI's tax saving scheme
A nomination facility is available.