SBI 5-year Tax Saver FD: Getting return on guaranteed returns on investment and saving tax on deposits can be a great combination for many investors. While it will help grow their income, it will also help them save money on tax. Investors get such a facility in non-market-linked programmes with at least 5 years of lock-in period. SBI 5-year tax saver FD is one such scheme that gives a guaranteed return and tax exemption on deposits.
One can get tax relaxation of up to Rs 1.50 lakh in a financial year on deposits in an SBI 5-year FD.
The FD has a lock-in period of five years.
The bank offers a 5-year FD to both general citizens and senior citizens.
For general citizens, the interest rate for the 5-year SBI FD is 6.50 per cent annually, while the bank offers 7.50 per cent annual interest to senior citizens.
In this write-up, we will tell you what Rs 50,000, Rs 100,000, Rs 150,000, and Rs 200,000 investments in each of the 5-year general citizen and senior citizen FDs will give you on maturity.
But before that, know a bit more about the SBI tax saver 5-year FD.
Read More: Kotak Mutual Fund launches Kotak Special Opportunities Fund – Should you invest?
SBI 5-year Tax Saver FD
The FD offers two types of accounts: Term Deposit (TD) account and Special Term Deposit (STD) account. The minimum period of deposit is five years, while the maximum period of deposit is 10 years.
For general citizens, the minimum deposit amount in the FD is Rs 1,000 and in multiples of Rs 100 thereafter. For senior citizens, the minimum deposit is Rs 10,000.
The maximum deposit amount can not exceed Rs 1,50,000 in a financial year to take advantage of tax benefits under Section 80C, as per the SBI website.
One gets the return in the form of interest. One can opt for a monthly, quarterly, or yearly credit of interest.
The loan facility in the 5-year SBI FD is not available during the lock-in period of five years.
An important feature is that a FD holder can’t encash a deposit before the expiry of five years from the date of deposit, except in case of the death of the depositor.
After the completion of five years, the bank allows the premature closure.
SBI 5-year Tax Saver FD: Here’s how much you get on Rs 50,000, Rs 100,000, Rs 1,50,000 and Rs 200,000 deposits
Read More: Demat Accounts, Mutual Funds Won’t Freeze for Lack of Nomination, Sebi Junks Rule
In general citizen 5-year FD
The scheme offers an annual interest rate of 6.50 per cent, so on a Rs 50,000 investment, the interest in five years will be Rs 19,021, and the maturity amount will be Rs 69,021.
On a Rs 100,000 investment, the interest will be Rs 38,042, and the maturity amount will be Rs 1,38,042.
On a Rs 150,000 investment, the interest will be Rs 57,063 and the maturity amount will be Rs 2,07,063.
On a Rs 200,000 investment, the interest will be Rs 76,084, and the maturity amount will be Rs 2,76,084.
Read More: 7th Pay Commission: 4% DA Hike Announced in THIS State, Check Details
In senior citizen 5-year FD
Since the scheme offers a 7.5 per cent interest rate, on a Rs 50,000 deposit, the interest will be Rs 22,497 and the maturity amount will be Rs 72,497.
On a Rs 100,000 deposit, the interest will be Rs 44,995, and the maturity amount will be Rs 1,44,995.
On a Rs 150,000 deposit, the interest will be Rs 67,492, and the maturity amount will be Rs 2,17,492.
On a Rs 200,000 deposit, the interest will be Rs 89,990 and the maturity amount will be Rs 2,89,990.
