SBI tax saving scheme: If you are looking for a tax saving option with a fixed income, then you can invest in SBI’s tax saver FD scheme.
SBI 5 Year Tax saving FDs: If you are looking for a tax saving option with a fixed income, then you can invest in SBI’s tax saver FD scheme. Tax deduction can be claimed under section 80C of income tax on investments up to Rs 1.5 lakh made in this. Tax saving FDs have a lock-in period of 5 years. Due to this, it is considered a safe option for salaried employees. However, it is important to know that the return on maturity is taxable. In SBI’s FD scheme, an account can be opened with a minimum of Rs 1,000. There is no limit on the maximum deposit.
SBI FD: 1.53 lakh interest on 5 lakh deposit
SBI is currently offering 5.40 per cent interest per annum to regular customers on term deposits of 5 years under the FD scheme. If you make an FD of Rs 5 lakh, then on maturity you will get Rs 6,53,800. In this, you will have an income of Rs 1,53,800 from interest. The interest in SBI term deposits is compounded on a quarterly basis.
If you are a senior citizen, the FD interest rates will be 6.20 per cent per annum. In such a situation, if you deposited Rs 5 lakh, then on maturity you will get Rs 6,80,093. In this, there will be an income of Rs 1,80,093 through interest. SBI is running SBI Wecare deposit scheme for its senior citizens for FD of 5 years or more. In this, in addition to the 0.50 percent extra interest that senior citizens usually get, 0.30 percent more interest is available. That is, if you have made an FD for 5 years, then you will get 6.2% annual interest. However, do know that the benefit of SBI WeCare Deposit Scheme can be availed only till March 31, 2022.
Benefits of Tax Saving FD
Usually, salaried taxpayers invest in bank FDs for last-minute tax saving. Actually, this bank’s fixed deposit is considered safe. This is a good option for risk-averse investors. Tax saving FDs get the benefit of tax exemption under section 80C. However, the interest earned from FD is taxable. In this, tax can be saved on investment up to a maximum of Rs 1.5 lakh in a financial year. It has a lock in period of 5 years. This period can extend up to 10 years. As per income tax rules, the depositor can claim tax exemption by submitting Form 15G/15H.
(Note: The interest rates for SBI FD scheme are for deposits below Rs 2 crore. Details are from the official website of the bank.)
