SBI customer? Earn up to 6.85% interest rate - Here's how
SBI now has Rs 1,000 as the minimum amount of deposit for its term deposit accounts/ special term deposits account.
Are you a State Bank of India (SBI) customer? Then this is your time to rejoice. The nation's largest public sector bank, SBI now allows a customer to make a minimum deposit of Rs 1,000 and can also earn a maximum 6.85% interest rate on them. However, it needs to be noted that, interest rate depends upon the tenure you decide to stay invested with SBI. This facility is also part of SBI's tax saving schemes and hence your gains arising from this deposit will allow you tax claims of up to Rs 1.5 lakh under section 80C of Income Tax Act.
SBI through its Twitter account says, "Get smarter about tax planning with tax saving instruments from SBI! Learn more about the SBI Tax Saving Scheme 2006: https://bank.sbi/portal/web/personal-banking/sbi-tax-savings-scheme-2006."
Get smarter about tax planning with tax saving instruments from SBI! Learn more about the SBI Tax Saving Scheme 2006: https://t.co/LcZG07WLte #SBI #StateBankOfIndia #Tax #TaxSaving #TaxSavingScheme #TaxSeason #SBITaxTips pic.twitter.com/paoqG8BSxl
— State Bank of India (@TheOfficialSBI) March 11, 2019
The customer who deposits a minimum of Rs 1,000 will reap the benefits of the interest rates by SBI. However, a deposit can be made at SBI for a higher amount as well, but not exceeding Rs 1.5 lakh.
This deposit is applicable only for tenure between 5 years to a maximum of 10 years. This way, one gets an interest rate of 6.85% on their deposits.
Key points to note:
1.Tax benefits under section 80C of Income Tax Act, 1961.
2.No term deposit can be en-cashed or withdrawn before the expiry of five years from the date of issue.
3. The customer should be a resident Indian ( for himself/herself), in the capacity of the Karta of the Hindu undivided family and should have Income tax Permanent Account Number (PAN).
4. No loan facility available i.e it cannot be pledged as security to any other asset. However, nomination facility is available.