| Eligibility | · An individual should be a resident of India or must be in the capacity of the karta of the Hindu Undivided Family.
· He/She should have Permanent Account Number (PAN). |
| Minimum Deposit | A minimum deposit of Rs 1000 or multiples thereof. |
| Maximum Deposit | The maximum balance should not exceed more than the limited balance of Rs 1,50,000 per year. |
| Type of account | · Term Deposit Account (TD)
· Special Term Deposit Account (STD) |
| Tenure | The minimum tenure period is 5 months and the maximum tenure period is 10 years. |
| Rate of Interest | As applicable to Term Deposits |
| Premature Withdrawal | Untill the completion of the period of 5 years from the date of its receipt no term deposit shall be converted. |
| Loan Facility | · It is not avialable for Term deposits/Special Term deposits as it shall not be assured to secure loan or as security to any other asests.
· Nomination facility is available. |
Terms and Conditions for SBI Tax Saving Scheme
- Benefits of Tax under the section 80 C of Income Tax Act 1961.
- The time period for maturity of the account is Mnimum of 5 yaers and maximum of 10 years.
- Before the completion of 5 years premature withdrawal is not allowed.
- Reinvestment Plan
Although Reinvestment Plan is a product of Term Deposit but it does not really follow the same principle as Term Deposit of paying Interest regularly but instead it is paid out only at the time of maturity of the account. In the principal amount a regular interest is added whereas compound interest is calculated and paid thereon.
Features
| Minimum Installment | A minimum amount of Rs 1000 |
| Maximum Installment | There is no limit for Maximum Installment amount |
| Rate of Interest | 4% with quarterly compounding |
| Tenure | The minimum tenure is 6 months and the maximum tenure is 10 years. |
| Premature withdrawal | · Premature Withdrawal are allowed in this plan.
· The premature penalty shall remain NIL for Retail Term Deposits up to Rs 5.00 lacs, despite of the fact that the deposits have remained with the bank for a period of at least 7 days. · The prepayment penalty is 1% for all tenure on the eligible rate for Retail Term Deposit up to Rs 5 lacs but less than Rs 1 crore. |
| Tax Deducted at Source | TDS is applicable in this plan. |
| Loan Facility | Loan/Overdraft are applicable upto 90%. |
| Auto Renewal | Auto renewal is valid if instructions are not given beforehand on opening the account. |
Terms and Conditions
- The tenure period of deposit is from 6 months to 10 years.
- Loan/Overdraft are applicable up to 90% of the deposit amount plus accured interest at 1.00% above the STDR rate.
- Interest are paid quarterly and credited to the principle account for compounding.
- If Form 15G/15H is not ubmitted than TDS is deducted at prevalent Income tax rate.
- If maturity instructions are not given than auto renewal of the account is exercised.
