SBI Tax Saving Scheme 2006 Fixed Deposit Scheme can be a much better option to save tax. Under this, a maximum amount of Rs 150000 can be deposited annually. Its minimum deposit limit is Rs 1000.
Banks offer tax-saving fixed deposits with a tenure of 5 years, which investors can use to save tax. One such bank is State Bank of India (SBI) .
According to SBI’s website, any Indian resident who holds a Permanent Account Number (PAN) can invest in SBI tax-saving fixed deposits either for himself as an individual or in the capacity of Karta of Hindu Undivided Family .
SBI Tax Saving Scheme
The minimum deposit limit in the fixed deposit scheme of SBI Tax Saving Scheme, 2006 is Rs.1,000. Thereafter the investor can deposit a maximum of Rs 150,000 in a year in multiples of Rs 100.
The SBI website reads, ‘The minimum deposit amount is Rs 1,000. Thereafter the maximum deposit amount in a financial year in multiples of Rs.100 cannot exceed Rs.1,50,000.
The minimum investment period is 5 years and the maximum is 10 years. SBI FDs maturing between 5 to 10 years will get an interest rate of 5.5% for general investors and 6.3% for senior citizens. Significantly, SBI Tax Savings Scheme provides tax benefits under the Income Tax Act 80C.
How to Open SBI Tax-Saving FD Online?
- Login to SBI Net Banking using credentials.
- Click on ‘e-TDR/eSTDR FD’ under ‘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.
As per the SBI website, Term Deposits cannot be encashed before the expiry of the lock-in period of 5 years from the date of Term Deposit. On the death of the account holder, the nominee/legal heir can withdraw the deposit at any time, before or after the maturity period.
