How to Close Tax Saver FD in SBI?

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How to Close Tax Saver FD in SBI?

Bir Das

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August 29, 2022

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Riya Sinha · Answer 1 · 2022-08-29T11:18:41+00:00

With the SBI Tax Saving Fixed Deposit Scheme, investors may earn a competitive rate of interest on lump sums up to Rs. 1.5 lakh while also deducting up to Rs. 1.5 lakh in taxes. I know this because I am a bank employee. Seniors are eligible for an additional 0.50% interest rate on their fixed deposit. Due to the tax advantages, there is a 5-year lock-in time for this. You can receive tax exemptions on your investments with the Tax Saving Fixed Deposit Scheme, 2006, provided by the State Bank of India (SBI). The programme has a five-year lock-in period. But you should also be aware of how to close tax saver FD in SBI because you may want to close it for multiple reasons. Own your dream home by investing your FD in buying or renting a home via NoBroker and save huge bucks on brokerage.

Interest Rates on SBI Tax Saving FD

Before I tell you how to close tax saver FD, let me tell you a little more about FD interest rates. With this scheme, you can deposit between Rs. 1,000 and Rs. 1.5 lakh. Prior to the 5-year lock-in period, you are not permitted to withdraw money through your FD account. Keep in mind that the bank may decide to adjust the interest rates at any time.

Tenure	Interest Rate for General Public (p.a)	Interest Rate for Senior Citizens (p.a)
5 years	5.40%	5.90%

Features and benefits of SBI Tax Saving FD

Summary of SBI Tax Saving Scheme FD features:

Account type	Term deposit/Special term deposit
Amount	Minimum: Rs.1,000 Maximum: Rs.1.5 lakh
Period	Minimum: 5 years Maximum: 10 years
Interest rate	5.30% p.a. (for general citizens) 5.80% p.a. (for senior citizens)
Premature withdrawals	Not Available
Loan	Not Available
Nomination	Available

How to close tax saver FD in SBI online? The tax saving scheme does not permit the premature closure of e-TDRs or e-STDRs even during lock-in period. You may only close that through your home branch after five years. Legal heirs of depositors may only prematurely close accounts through their home branches in the event of death.

This is the process of how to close tax saver FD in SBI. Read More: What are Tax Saving FD and Normal FD Options How to Save Tax on FD Interest What is the penalty for breaking FD

Suresh Waghle · Answer 2 · 2023-11-20T12:14:29+00:00

Suresh Waghle

0 November 20, 2023

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Hello buddy. I checked the method to close the FD a few days back. I found out that you cannot process your request for SBI tax saver FD close before the 5-year lock-in period gets over. I consulted with my relationship manager on the same and he shared a few more details on the same. Let me take you through them below.

How to Close SBI Tax Saver FD?

My bank relationship manager explained that there is no possible way to close the SBI tax saver FD when the lock-in period is active. I found out that you can close the FD only after the lock-in period of 5 years is over. That too, the process can only be done through your home branch. In a scenario where the depositor expires, their legal heir may opt to prematurely close the FD only through the home branch. Now, let me take you through the process of closing your FD account through the home branch.

You need to visit your home branch.
Ask the official for an FD closure form.
Fill it out correctly and get it verified by the official.
Submit the form to the particular officer related to FD closure in SBI.

That’s all from my end for this answer. I hope this helps you gain knowledge regarding SBI tax saver FD close. Get personal loan with zero hassle through NoBroker! Read More How to Download Fixed Deposit Certificate From HDFC?

How to Close Tax Saver FD in SBI?

Interest Rates on SBI Tax Saving FD

Features and benefits of SBI Tax Saving FD

How to Close SBI Tax Saver FD?

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How to Close Tax Saver FD in SBI?

Interest Rates on SBI Tax Saving FD

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