Savings scheme

Tax savings plan vs Flexi deposit plan

For a fiscal year, the minimum deposit amount is Rs. 5,000 under SBI’s Flexi deposit program.

The State Bank of India (SBI) offers various deposit systems as part of its personal banking book. SBI’s 2006 Tax Savings Program offers tax benefits of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act as mentioned on the portal from the country’s largest lender. The bank also offers a Flexi deposit system for customers, which is a product similar to recurring deposit (RD) but instead of a single fixed payment each month, the user can decide to vary the amount of their payment and even the number of months in the year. sum defined.

The SBI Tax Savings Plan, 2006 in detail

Indians resident as an individual or as Karta of the undivided Hindu family, having a Permanent Account Number (PAN) for income tax, are eligible for the benefits of the SBI Tax Savings Scheme , 2006. One can deposit a minimum of Rs 1,000 or multiples thereof while the maximum deposit should not increase by Rs 1,50,000 in a year, according to the SBI.

One must have a Term Deposit Account (TD) or Special Term Deposit Account (STD) to apply for the SBI Tax Savings Plan, 2006. The minimum term is five years and the maximum term is 10 year. The savings plan has no specific interest rate and the interest is similar to that of term deposits.

The term deposit cannot be withdrawn before the expiration of a period of five years from the date of its receipt.
People who are considering investing in the savings plan cannot use TD / STD to secure a loan or as collateral for any other asset. However, the nomination facility is available.

The SBI Flexi Deposit Scheme in detail

For a fiscal year, the minimum deposit amount is Rs. 5,000 and the maximum deposit amount is Rs. 50,000 under SBI’s Flexi deposit program. Deposits can be made at any time during a month and any number of times. The minimum term is 5 years and the maximum is 7 years.

Like the SBI’s Tax Savings Scheme, 2006, the interest rate is the same as that applicable to term deposits. However, quarterly compound interest is also applicable.

Unlike SBI’s 2006 tax savings program, premature withdrawal is allowed in SBI’s Flexi deposit program. The rate applicable in the event of an early withdrawal is 0.50% lower than the rate applicable for the period during which the deposit remained with the bank. The penalty fees for non-deposit of monthly payments amount to Rs 50 per fiscal year, SBI said. Loan facilities applicable to term deposits are also applicable.

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