SBI Tax Saving Deposit Scheme 2012 – Interest & Annual Yield

SBI recently advertised how the fixed deposits offered by SBI under Section 80C helps you save tax and the effective yield.

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sbi tax saving deposit

But this is pre tax return. The interest you get is taxable in case of above deposits. Since they have assumed tax bracket of 30%, your post tax yield would come to 14.15% (from 18.55%) for senior citizens and for others it would be 13.7% (from 17.77%).

So be careful when you are tempted with such advertisements 🙂

You can check Best 80C Tax savings 5 years Fixed Deposit Interest Rates here.

12 thoughts on “SBI Tax Saving Deposit Scheme 2012 – Interest & Annual Yield”

  1. If I make a FD of 25k for 5 years on my wife’s name (she is house wife and dependent on me), can I use it to show as investment in my annual Tax Declaration ?
    I hope yes, please correct me if I am wrong.

    By the way the interest quoted above is Yield not actual rate of interest. Actual SBI rate of interest is (and was) 8.50% only.

    So If I invest 25k for 5 years, my yield will be 38k.

    1. Tax Saving FD should be done on your name for claiming exemption. If you want to include your wife’s name she can come as second holder.

      You are correct about the maturity amount of 38K for investment of Rs 25K.

  2. Financial Planning Taxes

    Thanks for update the awesome review ! about SBI Tax Saving Deposit Scheme.
    Its useful Thank you so much !

    1. better to go for ELSS by investing 3 years can save tax life time this is the only instrument which have shortest lock perod for 3 years divident can save immideate for second year reduce your investment but it is quite risky but some where you have to compromice to free your rs 100000 and unseen inflation effect with other instrument

  3. Please inorm the intarest earned under tax saving fd is exemption from tax …? Like other savings like lic, ppf etc.,

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