Interest rate offered by SBI Tax Savings SchemeThe rate of interest for the SBI Tax Savings Scheme, 2006, is just like that of fixed deposits. As per the latest rates, effective from February 15, SBI FDs maturing between 5 years to 10 years will yield 5.5 per cent to general customers.
SBI Tax Savings Scheme withdrawal and nomination rulesSince the minimum tenure of the plan is 5 years, the account cannot be withdrawn before that. The scheme also provides a nomination facility to depositors.
Benefits of the schemeTax benefits under section 80C of Income Tax Act, 1961.TDS is applicable at a prevalent rate.Form 15G/15H can be submitted by the depositor to get exemption from Tax deduction as per Income Tax Rules.
Who is eligible for SBI Tax Savings Scheme?Any resident Indian can open the account for himself/herself as an individual or in the capacity of the Karta of the Hindu undivided family. They must have a valid Permanent Account Number (PAN).The joint account shall be issued jointly to two adults or to an adult and a minor.