Almost every bank in India offers tax-saving fixed deposits with a tenure of 5 years or 5 year lock-in period, which investors can use to save tax. These FDs are a great place to save tax and earn good returns at the same time. SBI, the largest Bank in India also offers this FD.
SBI Tax Saving Fixed Deposit
Individuals who match the SBI's qualifying requirements can open a tax-saving Fixed deposit account with the bank. To open this deposit account, go to the bank's nearest branch office and fill out the necessary paperwork. Through online banking, users may also create a tax-deferred term deposit account. Individuals must have an online banking login and password, as well as at least one transaction account linked to the username, to make use of this service.
'The minimum deposit amount is Rs 1,000,' according to the SBI website. Following that, the maximum deposit amount in multiples of Rs.100 in a financial year cannot exceed Rs.1,50,000. The minimum and maximum investment periods are 5 and 10 years, respectively.
General investors will receive a 5.5 percent interest rate on SBI FDs maturing between 5 and 10 years, while elderly people would receive a 6.3 percent interest rate. Significantly, the SBI Tax Savings Scheme offers tax advantages under Section 80C of the Income Tax Act.
How to Open SBI Tax-Saving FD Online?
- Login to SBI Net Banking using credentials.
- Click on 'e-TDR/eSTDR FD' under the 'Fixed Deposit' tab.
- Click on e-TDR / eSTDR under Income Tax Savings Scheme.
- Click 'Proceed'.
- Select the account, amount and accept the terms and conditions and click on submit.
- Then, click 'Confirm'.
- Now on the next page, you will get the details of your SBI Tax Saving FD.
The tax saving FD with the SBI Cannot be redeemed or withdrawal before the completion of 5 years lock-in period or from the date of deposit unless the depositor dies. During the five-year lock-in term, the lending facility is unavailable.