SBT Tax Saver Term Deposit

 

 1. Name of the product  SBT Tax Saver Term Deposit
 2. Period of Deposit
 5 years only
 ( Can be opened either as Term Deposit or Special term deposit)
 3. Eligibility
  1. Single holder
    - The single holder type deposit receipt shall be issued to an individual for himself or in the capacity of the Karta of the Hindu undivided family
  2. Joint holder
    - The joint holder type deposit receipt may be issued jointly to two adults or jointly to an adult and a minor, and payable to either of the holders or to the survivor :
    Provided that in the case of joint holder type deposit, the deduction from income under section 80C of the Act shall be available only to the first holder of the deposit.
 4. Maximum amount of deposit  by an assessee  Rs.1.5 lakhs in a year with a minimum of Rs.100 or multiples thereof.
 5. Interest

 As applicable to deposits for 5 years (Additional interest for staff/senior citizens) 

 Interest rates 

 6.Payment of interest  Same as in the case of regular Term Deposits/Special Term Deposits. Monthly (discounted rate) / quarterly/  annually/ on maturity
 7. Encashment  No premature payment before the expiry of five years from the date of the deposit.
 8. Nomination
  1. Nomination to be made by the single holder or the joint holders of a term deposit before its maturity.
  2. No nomination shall be made in respect of a term deposit applied for and held by or on behalf of a minor. (to be manually controlled by the Branch)
 9.Right of nominees  In the event of the death of the holder of a term deposit in respect of which a nomination is in force, the nominee  shall be entitled at any time before or after the maturity of the term deposit to encash the term deposit.
 10. Income tax
  1. Interest on these term deposits shall be liable to tax under the Act, on the basis of annual accrual or receipt, depending upon the method of accounting followed by the assessee.
  2. The tax on such interest shall be  deducted in accordance with the provisions of section 194A or section 195 of the Act (to bedone at branch level).
 11. Other Conditions
  1. The Term Deposit receipt should bear the name, address, Permanent Account Number (PAN) and signature of the assessee.
  2. The Term Deposit may be transferred from one branch to another but is not transferable between banks.
  3. The Term Deposit shall not be pledged to secure loan or as security to any other asset.
  4. If a Term Deposit receipt under the scheme is lost, stolen, destroyed, mutilated or defaced, a duplicate receipt may be issued after obtaining an indemnity bond with one or more sureties.
  5. All other terms and conditions same  as for Term deposits.