SBI Tax Saving Fixed Deposit (FD): Interest Rate, Lock-In Period, Key Features
- Resident Indians as an individual or in the capacity of the Karta of the Hindu Undivided Family (HUF)Â are eligible to invest in this scheme, according to SBI. Also, applicants need to have a Permanent Account Number (PAN) to invest in this scheme.
- The names, mode of operation and home branch of newly generated tax saving deposit account is same as in debit account, from which fixed deposit account is funded. However, in case of joint accounts only, the first holder is only eligible for deduction from income under section 80C of Income Tax Act, according to SBI.
- One can open a tax saving fixed deposit with a minimum amount of Rs 1,000.
- The maximum amount that can be deposited under the tax saving FD scheme is Rs 1.5 lakh in a financial year.
- The rate of interest for the scheme, is similar to that on fixed deposits. SBI revised its interest rates on term deposits with effect from August 1, 2019. The interest rates for retail deposits below Rs 2 crore is 6.50 per cent for general public and 7 per cent for senior citizens in maturity period of 5 years and up to 10 years.
- Customers cannot withdraw the fixed deposit before the expiry of five years from the date of its receipt, according to SBI.
- Premature closure of fixed deposit under tax saving scheme is also not allowed during the lock-in period. After 5 years, investors can close it through the home branch only. In case of death of depositor, legal heir of depositor can pre-maturely close it through home branch only.
- Senior citizen can avail additional rate of interest under tax saving FD scheme by exercising the relevant option. The date of birth in bank's record is considered for age validation. The minimum days and minimum amount applicable for additional rate of interest for senior citizen is as per bank's policy. In case of joint accounts, the senior citizen benefit can be availed only if the first account holder qualifies for this benefit, according to SBI.
- A nomination facility is also available with SBI's tax saving scheme.
- Customers cannot use the deposit account to secure loan or as security to any other asset, according to SBI.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
