SBI tax savings scheme: Eligibility to investment limits – All you need to know

SBI tax savings scheme: Who doesn’t hate to pay taxes, right? A part of your hard earned money goes away just like that. But, as a citizen of any country, it is your duty to pay taxes. However, the smart ones invest and eventually end up saving a lot of money.

This scheme, also known as SBI tax savings scheme, allows investors to avail income tax benefit under Section 80C of the Income Tax Act. Source - PTI.

SBI tax savings scheme: Who doesn’t hate to pay taxes, right? A part of your hard earned money goes away just like that. But, as a citizen of any country, it is your duty to pay taxes. However, the smart ones invest and eventually end up saving a lot of money. India's largest commercial lender the State Bank of India (SBI) offers income tax benefits under a special type of fixed deposit (FD) scheme.

This scheme, also known as SBI tax savings scheme, allows investors to avail income tax benefit under Section 80C of the Income Tax Act against their investment—up to Rs 1.5 lakh in a financial year-

Here are the key things to know about SBI tax savings scheme:

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Eligibility

Resident Indians for himself/ herself as an individual or in the capacity of the Karta of the Hindu undivided family, having Income Tax Permanent Account Number (PAN).

The joint account shall be issued jointly to two adults or to an adult and a minor.

Features:

Type of Account: Term Deposit (TD) account / Special Term Deposit (STD) account.

Minimum period of deposit – 5 Years

Maximum period of deposit - 10 Years

Available at all branches (except specialized credit intensive branches) all over India.

Investment Limits

The customers are allowed to make a minimum deposit of Rs 1,000 and in multiples of Rs 100 thereafter. The maximum deposit amount not exceeding Rs 1,50,000 in a year

Rate of interest as applicable to Term Deposits

The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate. The rate applicable to all Senior Citizens of age 60 years and above will be 0.50% above the applicable rate.

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