Are you NRI? Earn 6.80% interest on your deposit, and also save taxes - This is how SBI helps you

After providing a host of services to Indian citizens in saving income taxes, the largest lender State Bank of India (SBI) has now shifted its focus towards to NRI customers. The bank has a term deposit scheme meant for NRIs, where they will earn an interest rate on their deposits and also be eligible for tax exemption under section 80C of Income Tax Act. In fact, the interest rate which an NRI will earn on their deposits at SBI is similar to other domestic savings deposits. SBI has been encouraging its customers to opt for their tax saving schemes, which can help them reduce their taxes as the season for filing income tax has arrived. If you are an SBI NRI customer and are planning to save taxes, then here’s a list of things you must note about the bank’s saving scheme.

SBI through its official Twitter account said, “NRI customers can now plan and save on their taxes better with the SBI Tax Savings Scheme - NRO Deposit! Maximise your tax savings now: https://bank.sbi/portal/web/nri/nro-tax-saving-scheme.”

NRI customers who are having Income Tax Permanent Account Number (PAN) are only eligible for SBI’s tax saving scheme - NRO deposit.

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SBI’s term deposit account for NRIs!

• Rupee deposits of fixed tenure
• Interest is paid quarterly on Term Deposit Receipts (TDRs). It will be credited to the NRO Savings Bank / Current account as per request of the customer.
• Minimum Deposit: Rs. 10,000/- & in multiples of 1,000s.
• Maximum Deposit: Rs. 150,000/- per Financial Year.
• Principal & interest amount are repatriable, subject to overall ceiling of USD 1 million or equivalent in a financial year
• Nomination facility available
• On maturity, the deposit will be credited back to NRO a/c or renewed into 5 years regular NRO fixed deposit product

Similar facilities are offered in SBI’s special term deposit scheme as well for NRIs.

An NRI must stay deposited at a maximum 5-year tenure at SBI. Also, premature withdrawals are not permitted.

For up to 5 years tenure - an NRI customer will earn 6.80% interest rate on their deposits annually.

Income Tax as per following will be deducted at source on interest earned in the NRO accounts:

If interest income is less than or equal to Rs. 1 crore: 30.90%

If interest income is more than Rs. 1 crore: 34.608%

However, a person can claim tax benefit of up to Rs 1.50 lakh on their deposits at SBI under section 80C.