SBI Tax Saving Scheme

State Bank of India’s Tax Saving Scheme is designed in such a manner that it provides the depositor with tax saving benefits and can earn effective yields on the deposits. Both individuals and non-individuals can open a single or a joint account. However, the applicant must be an Indian citizen to avail the benefits of this scheme.

SBI Tax Saving Scheme Eligibility Criteria:

The applicant must an Indian resident and can be either an individual or a non-individual like an HUF Karta. Moreover, the applicant has to provide the bank with his/her PAN number for income tax verification.

Account Type

Term Deposit Account / Special Term Deposit Account (Single Account)

Deposit Amount

Minimum: Rs.1,000/- or multiples thereof

Maximum: The deposition amount must not exceed Rs.1,50,000/- in a year

Rate of Interest

Minimum: 5.25%

Maximum: 7.5%

Senior Citizens: additional 0.5% on the mentioned rates

Period

Minimum: 60 Months

Maximum: 120 Months

TDS

Under section 80C of Income Tax Act, 1961, Tax benefits are provided

Loan against the scheme

N.A.

Nomination (if any)

Available, but only one person can be nominated by the depositor. On the other hand, the joint account holders can nominate more than one individual


SBI Tax Saving Scheme Interest Rates:

Tenure

Existing rate for Public

Revised for Public w.e.f 05.10.2015

Existing rate for Senior Citizens

Revised rate for Senior Citizens w.e.f 05.10.205

1 Week to 45 Days

5.50%

5.25%

5.75%

5.50%

46 Days to 179 Days

6.75%

6.50%

7%

6.75%

6 Months to 210 Days

7%

6.75%

7.25%

7%

211 Days to 1 Year

7.25%

7%

7.50%

7.25%

1 Year to 455 Days

7.5%

7.25%

7.75%

7.50%

456 Days to 2 Years

7.75%

7.50%

8%

7.75%

730 Days to 3 Years

7.75%

7.50%

8%

7.75%

Three Years to 60 Months

7.25%

7%

7.50%

7.25%

60 Months to 120 Months

7.25%

7%

7.50%

7.25%

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