INSUBCONTINENT EXCLUSIVE:
The rate of interest for the scheme, is similar to that on fixeddeposits.
Most commercial banks in
the country such as State Bank of India (SBI) offer income tax benefits under a special type of fixed deposit (FD) account
This income tax benefit can be availed by the eligible assessees against their investment - up to Rs 1.5 lakh in a financial year- under
Section 80C of the Income Tax Act
Also known as tax-saving fixed deposit, this special type of fixed deposit allows a minimum maturity period of five years and a maximum of
10 years, according to SBI's website- sbi.co.in
Here is everything you need to know about SBI's tax saving fixed deposit (FD):Resident Indians as an individual or in the
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 1000.The maximum amount that can be deposited under the
SBI revised its interest rates on term deposits with effect from August 1, 2019
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
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
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.Get Breaking news, live coverage, and Latest News from India and around the world on
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