New Delhi: India’s largest commercial lender the State Bank of India (SBI) offers income tax benefits under a special type of fixed deposit (FD) scheme. This scheme, also known as SBI tax savings scheme, allows investors to avail income tax benefit under Section 80C of the Income Tax Act against their investment—up to Rs 1.5 lakh in a financial year-

Here are the key things to know about the SBI tax savings scheme:


  • Resident Indians for himself/ herself as an individual or in the capacity of the Karta of the Hindu undivided family, having Income Tax Permanent Account Number (PAN).
  • The joint account shall be issued jointly to two adults or to an adult and a minor.


  • Type of Account: Term Deposit (TD) account / Special Term Deposit (STD) account.
  • Minimum period of deposit – 5 Years
  • Maximum period of deposit – 10 Years
  • Available at all branches (except specialized credit intensive branches) all over India.
  • Minimum deposit amount Rs. 1,000 and in multiples of Rs. 100 thereafter.
  • Maximum deposit amount not exceeding Rs. 1,50,000 in a year
  • Rate of interest as applicable to Term Deposits
  • The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate.
  • The rate applicable to all Senior Citizens of age 60 years and above will be 0.50% above the applicable rate.
  • Payment of interest as applicable to Term Deposit/ Special Term Deposit
  • TDS is applicable at the prevalent rate. Form 15G/H can be submitted by the depositor to get an exemption from Tax deduction as Income Tax Rules.
  • Nomination available
  • Loan facility not available during the lock-in period of five years. After five years as per the extant instruction of Term Deposit (TD)/ Special Term Deposit (STD)
  • Transferability among our branches Allowed


  • Tax benefits under section 80C of Income Tax Act, 1961.

Terms And Conditions

  • No term deposit shall be encashed before the expiry of lock-in period of five years from the date of its receipt.
  • After completion of 5 years, premature closure will be allowed as per terms and conditions applicable to Term Deposit.
  • In case of death of account holder, the nominee/legal heirs can withdraw the deposit any time before or after maturity.
  • In case of death of first account holder in joint account, the other holder is entitled to withdraw the deposit before its maturity. The Bank shall pay interest at the rate applicable for the period deposit has run without any penalty