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.
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 |
| 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% |
