SBI Income Tax Savings Scheme: Interest Rates, Tax Benefits, And Other Details

State Bank of India (SBI) offers a tax-saving scheme which may help you plan your investments better. The new financial year 2018-19, also known as fiscal year 2019, has just started. In order to save on income tax and increase your savings, you must be looking for new investment schemes. The next 12 months until March 31, 2019, are important to give shape to your investment ideas. Immediately, you might not be asked by the company that you work for to show your investment proofs but towards the end of the fiscal year, you will be required to prove your investment declaration. Even if you run your own business, income tax authorities will require you to invest your money if you want to cut down on your income tax outgo. State Bank of India (SBI) offers a tax saving scheme which may help you.

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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.

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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.

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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.