SBI Tax Saving FD (Fixed Deposit) 2023

Under Section 80C of the Income Tax Act, you can make investments and demand tax deductions from your income. One such smart investment option is SBI tax saver FD. Tax Saving FD SBI works like any regular FD account. However, this fixed deposit ensures your ROI and interest rates are higher than the rest.

In this article, let’s get to know in detail about what an SBI tax saving scheme is, its interest rates, features, benefits, and the easy process of opening an SBI tax saver online.

What Does the SBI Tax Saving Scheme Entail?

The SBI Tax Saving Scheme offers both individuals and senior citizens opportunities to gain handsome ROI (Rate of Interest) on amounts up to Rs. 1.5 lac, and at the same time, avail tax deductions up to Rs. 1.5 lac (as per the Income Tax Act, 1961). However, no premature withdrawal or loans are allowed under this scheme.

How to Calculate SBI Tax Saver FD Interest?

Calculating SBI FD interest rates beforehand makes it easy for you to analyze the interest rates along with the returns you would be receiving in the future. You can use any FD calculator online or any online tool that allows you to calculate maturity easily and efficiently. Let’s see how you can use an online FD calculator for the same below:-

• Open any online interest calculator.

• Enter the Deposit Amount and the Tenure (years/months).

• The standard interest rate would already be displayed on the website.

• Select the fixed deposit type and click Calculate.

• Your calculated maturity amount and total earned interest will be shown on the screen.

SBI Fixed Deposit Interest Rates on Domestic Deposits (Less than Rs. 2 crore)

SBI FD Rates on Domestic Bulk Term Deposit (Rs. 2 Crore and above)

SBI FD Rates for Non-Residential Ordinary (NRO) FD Account

SBI FCNR(B) Deposit Interest Rates

SBI RFC FD Rates

Types and Eligibility of SBI Fixed Deposit Schemes

There are four types of FD scheme provided by the State Bank of India. They are- 

SBI Tax Saving Scheme

The SBI Tax Saving Scheme is specifically designed for individuals looking to save on taxes. It offers tax benefits under Section 80C of the Income Tax Act. The scheme has a lock-in period of five years, during which the deposited amount cannot be withdrawn. 

Eligibility

• The applicant must be above 18 years of age.
• Only resident individuals and Hindu Undivided Families (HUFs) can avail of the scheme.
• The applicant must have a valid PAN card at the time of application.
• The minimum deposit amount required to open an account under the SBI Tax Saving Scheme is Rs. 1,000.
• The maximum investment limit to avail of tax benefits under Section 80C of the Income Tax Act is Rs. 1.5 lakh per financial year. This investment amount qualifies for deduction from the total taxable income.

SBI Annuity Deposit Scheme

The SBI Annuity Deposit Scheme is suitable for individuals seeking a regular income stream. Under this scheme, you make a lump sum deposit, and the bank provides you with fixed monthly instalments that include both principal and interest. The tenure of the deposit can range from 3 to 10 years. The interest is calculated based on the reducing balance method.

Eligibility

• The applicant must be at least 18 years old.
• The scheme is available to resident individuals, Non-Resident Indians (NRIs), and Hindu Undivided Families (HUFs).
• The applicant must have a valid PAN card at the time of application.
• The minimum deposit amount required to open an account under the SBI Annuity Deposit Scheme varies depending on the chosen annuity amount and the tenure of the deposit. The bank will provide specific details regarding the minimum deposit requirement.
• The applicant needs to provide the necessary identification and address proof documents as per the bank’s requirements. This may include documents like Aadhaar Card, PAN Card, Passport, etc.

SBI Reinvestment Plan

The SBI Reinvestment Plan allows you to maximise your returns by reinvesting the interest earned. Instead of receiving interest payouts at regular intervals, the interest is reinvested and compounded. This helps in enhancing the overall returns upon maturity. The tenure of the deposit can vary from 6 months to 10 years, providing flexibility to choose a suitable investment horizon.

Eligibility

Eligibility Criteria for the SBI Reinvestment Plan is the same as SBI Annuity Deposit Scheme. 

SBI Multi Option Deposit Scheme

The SBI Multi Option Deposit Scheme offers flexibility in managing your fixed deposit. You can link your FD account to a savings or current account, allowing easy liquidity. This means you can withdraw funds from your FD account as per your requirement without breaking the entire deposit. The scheme also provides the option to avail of overdraft or loan facilities against the fixed deposit.

Eligibility

Is the same as SBI Annuity Deposit Scheme. 

How to Open SBI FD online?

To open a tax saver FD SBI online, you can follow the step-by-step guide provided below:-

1. Start by logging in to your SBI Net Banking account using your credentials.
2. Once done, navigate to the ‘Fixed Deposit’ tab and click on the ‘e-TDR/eSTDR FD’ section.
3. Within the ‘e-TDR/eSTDR FD’ section, look for the option “Income Tax Savings Scheme” and click on it.
4. On the next screen, you will be required to choose the account from which the FD amount will be debited for your SBI tax saving scheme. Specify the deposit amount, carefully read the terms and conditions and click on accept. Finally, click on the ‘Submit’ button to proceed.
5. Once you have submitted the required information, a confirmation page will appear. Review the details provided to ensure everything is ok. If so, click on ‘Confirm’ to finalise the process. If not, you can always go back and make the necessary changes.

SBI Loan against Fixed Deposit

The SBI Loan against tax saver FD SBI allows individuals to get a loan by using their fixed deposit as collateral. Here are some highlights about the scheme that you need to know:-

• The loan comes with attractive interest rates since it is secured by a fixed deposit.
• You can borrow up to 90% to 95% of your fixed deposit amount, depending on SBI’s terms.
• The loan approval and disbursal process is fast, with minimal documentation and verification.
• You can choose a repayment tenure that suits you, either through EMIs or a lump sum payment at the end. Prepayment charges are usually not applicable.
• Your fixed deposit remains intact and continues to earn interest while you utilise the loan amount.
• The loan is secured by a fixed deposit, so your credit score is not a major factor in the approval process.
• You can apply for the loan at an SBI branch or through their official website.

Eligiblility

• Applicants must be above 21 years old.
• Applicants should have a tax saver fixed deposit SBI.
• The fixed deposit should not have matured when applying for the loan.
• Types of Deposits: TDR, STDR, e-TDR, and e-STDR with SBI are eligible for this loan. RD, e-RD, NRE, RFC, and FCNR deposit holders with SBI can also avail of this facility.
• Sole proprietorship and partnership firms can apply for the loan against their fixed deposit.

How to Apply for SBI Loan against Fixed Deposit?

• Go to the nearest State Bank of India branch.
• Ask the bank officials for the loan application form or download it from the SBI website.
• Complete the application form with accurate information. Provide details about your fixed deposit, like the deposit amount and maturity date.
• Gather the required documents, such as proof of identity (like an Aadhaar Card or PAN Card), proof of address, and the original fixed deposit receipt.
• Hand in the filled application form and supporting documents to the bank officials at the branch.
• The bank will review your application and verify the information provided. They will assess your eligibility based on the value and terms of your fixed deposit.
• If you meet the eligibility criteria, your loan will be approved, and the loan amount will be disbursed to you.
• Make sure you understand the repayment terms, including the loan tenure, instalment amount, and payment frequency. Be aware of your repayment obligations and due dates.

“Remember, it’s always best to contact the SBI directly or visit their official website for the most accurate and up-to-date information on applying for a Loan against tax saver FD SBI.”

SBI Credit Card against FD

State Bank of India (SBI) offers a unique credit card facility called “Credit Card against Fixed Deposit”. It is an excellent option for those who want to build or improve their credit history while enjoying the benefits of a credit card.

The SBI Credit Card against tax saver FD SBI works by linking a customer’s fixed deposit account with their credit card. The credit limit on the card is determined based on a certain percentage of the fixed deposit amount. This means that the credit limit is secured by the customer’s fixed deposit, minimising the risk for both the customer and the bank. Here are some key features and benefits of the Credit Card against tax saver FD SBI:-

• Easy Eligibility: The eligibility criteria for this credit card are relatively simple. Individuals who hold a fixed deposit with SBI can apply for this card.
• Secured Credit Limit: The credit limit on the card is typically set at a percentage (e.g., 85-90%) of the fixed deposit amount. This ensures that customers have access to credit while the bank has collateral in the form of a tax saver fixed deposit SBI.
• No Income Proof Required: Since the credit card limit is secured against the fixed deposit, there is usually no requirement for income proof during the application process. This makes it a suitable option for individuals who may not have a regular income source.
• Fixed Deposit Continuity: The fixed deposit remains intact and continues to earn interest as per the prevailing rates, even after availing of the credit card facility against it.
• Credit Card Renewal: As long as the fixed deposit is maintained, the credit card can be renewed without any hassle. This ensures a continued credit facility for the customer.

To apply for a Credit Card against tax saver FD SBI, customers can visit the nearest SBI branch or apply online through the bank’s official website. The application process is simple and involves providing details of the fixed deposit account, and personal information, and completing the necessary documentation.

Premature Closure of SBI Fixed Deposit

Here are the steps to close a tax saver fixed deposit SBI account online:-

• Visit the official website of the State Bank of India.
• Locate and click on the tab “ETDR/STDR (FD)”.
• Under that list, look for the option that says “Close Account Prematurely” and select it.
• You will be presented with a list of your tax saver FD SBI. Choose the specific FD that you want to close and click on the “Proceed” button.
• Verify the details of the selected tax saver FD SBI to ensure accuracy.
• Provide the reasons for closing the FD as per your preference and click on the “Confirm” button.
• A high-security OTP will be sent to your registered mobile number. Enter this password and click on “Confirm”.
• You will receive a message confirming the closure of your FD.
• Monitor the account from which the FD was initially funded. The withdrawn amount will be returned to this account.
• If you require an immediate closure, initiate the request to close your e-TDR/e-STDR between 08:00 AM IST and 08:00 PM IST, as mentioned on SBI’s website.

Note:– If you initiate the closure request outside of the specified time, it will be scheduled for the next opening hours, which is 08:00 AM IST.

FAQ’s on SBI Tax Saver FD:-