SBI tax savings fixed deposit account: 5 things to know1 min read . Updated: 08 Dec 2018, 07:39 AM IST
SBI Tax Savings Scheme offers tax benefits of up to ₹1.5 lakh under Section 80C of the Income Tax Act.
New Delhi: State Bank of India (SBI) offers a fixed deposit or term deposit scheme called the SBI Tax Savings Scheme, 2006. Resident Indians with Permanent Account Numbers (PANs) are eligible to avail the benefits of this scheme, according to the bank’s website (sbi.co.in.). SBI Tax Savings Scheme offers tax benefits of up to ₹ 1.5 lakh under Section 80C of the Income Tax Act.
Here is everything you need to know about SBI’s Tax Savings Scheme, 2006:
1. The minimum deposit in an SBI Tax Savings Scheme, 2006, fixed deposit plan is ₹ 1,000 or multiples thereof whereas the maximum deposit should not exceed ₹ 1,50,000 in a year.
2. For an account in the SBI Tax Savings Scheme, 2006, the minimum tenure is for five years which can go up to a maximum of 10 years.
3. The rate of interest for the SBI Tax Savings Scheme, 2006, is similar to that of fixed deposits.
4. An SBI Tax Savings Scheme, 2006, account cannot be withdrawn before the expiry of five years from the date of its receipt.
5. Nomination facility is also available with the scheme.
Apart from term deposits or fixed deposits, SBI also offers a flexi-deposit scheme. This scheme is a sort of recurring deposit (RD), but unlike an RD account, where you have to deposit a fixed instalment every month, the instalment in an SBI flexi-deposit scheme can vary. Deposits in the SBI flexi scheme can be made any number of times during a year and any time during a financial year, within the annual maximum limit.