SBI Tax Savings Scheme, 2006|State Bank Of India Fixed Deposit Rates-– Interest Rate, Calculator & Benefits

Fixed Deposit Details

Bank Name

State Bank Of India

Eligibility

Resident Indians for himself/ herself as an individual or in the capacity of the Karta of Hindu Undivided Family(HUF).

Interest Rate

Up to 7.25% per annum

Tenure

5 yers to 10 years.

Fixed Deposit Type

Tax Saver

Tax Savings Scheme, 2006

Tax Benefits

Tax exemption under Section 80C of the Income Tax Act, 1961.

Credit Ratings

[ICRA]AAA IND AAA

Interest Payment Frequency

Monthly, Quarterly, Half- yearly, Yearly, At maturity. Typically for fixed deposits having interest payment at maturity, compound interest is applicable and for fixed deposits having monthly interest payment, simple interest is applicable. Typically fixed deposits having a tenure of one year or less, simple interest is applicable. It is best to consult the bank officials before you book a fixed deposit.

Cummulative/Non-Cummulative

Cumulative

Features

• Quarterly compounded interest.
• Lock-in period of 5 years.
• No loans or advances against these deposits are allowed during lock-in period.
• Pre-mature payment is not allowed before the expiry of 5 years from the date of its receipt except in case of the death of the depositor.
• Maximum deposit must not exceed Rs. 1,50,000 in a year.

Minimum Investment Amount

Rs. 1,000

Features & Benefits

Pros

• Tax exemption under Section 80C of the Income Tax Act, 1961.
• Flexible interest payout options.

Cons

• The maximum deposit amount in a financial year is Rs 1,50,000 for availing tax benefits.

Pros & Cons

How to Open?

Application Process :

• Visit your nearest Bank of Baroda branch or use their online banking services.
• Provide the necessary details, including the deposit amount and preferred tenor.
• Complete the required documentation

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