Is SBI fixed deposit for 5 years tax free?

You can get an income tax rebate of up to ₹1.5 lakh every financial year by contributing to an SBI 5-year fixed deposit scheme. Both regular and senior citizens can open this account.

Which FD is best for tax saving?

If you prioritise reliability and competitive interest rates, then the tax saver FD account from SBI can be a very good option. Here, you get 6.50% interest per annum whereas senior citizens get a 7.50% interest rate.

What are the different types of accounts which I can use to open my SBI tax saving FD account?

You can use your SBI current, savings or overdraft account to open your SBI tax saving FD account. Nevertheless, you must make sure that your account is active.

Is it possible to add a new nominee to the SBI tax saving FD online?

No, you cannot add a new nominee to the SBI tax saving FD online. You have to visit the nearest SBI branch to add the nominee.

Can I collect a tax saver account receipt using the net banking facility of SBI?

No, you cannot collect the tax saver account receipt of SBI through the net banking facility. You need to collect the receipt by visiting the SBI branch.

SBI Tax Saving FD Interest Rates 2026

Stable Money Team

Author Updated on Feb 25, 2026

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The State Bank of India (SBI) is India’s largest public sector bank that is headquartered in Mumbai. It offers various fixed deposit options designed for different financial goals. Among these FD offerings, the SBI tax saving FD is best for individuals who want to gain competitive interest earnings on their lump sum investments.

The SBI tax saving FD interest rates range between 6.05% and 7.05% for general and senior citizens respectively. Under this FD scheme, you can enjoy income tax exemptions on your investment amount up to ₹1.5 lakh in a financial year. Learn more about the tax saving FD of SBI, its features, benefits, and more.

Interest Rates on SBI Tax Saving FD 2025

Here is a table that mentions the latest SBI Bank tax saver FD interest rate:

Tenure	General Citizen	Senior Citizen
5 years	6.05% p.a.	7.05% p.a.

For a detailed comparison across other tenures, check out SBI Fixed Deposit Interest Rates.

SBI Tax Saving Scheme Overview

The following table highlights the key features of SBI tax saving FD:

Account type	Term Deposit (TD) or Special Term Deposit (STD)
Minimum Amount	₹1,000
Maximum Amount	₹1.5 lakhs
Minimum Tenure	5 years
Maximum Tenure	10 years
Premature Withdrawal	Not available before 5 years unless in case of the depositor’s demise
Loan facility	Not available during the five years
Nomination facility	Available

Features and Benefits of SBI Tax Saving FD Scheme

Here is a list of key benefits of SBI online tax saver FD:

You can create this FD with a minimum deposit of just ₹1,000.
The SBI tax saving FD boosts your investment through compounded interest.
It is a secure choice with minimal associated risks.
Unlike mutual funds, it provides fixed interest rates and assured returns.
You can use an online FD calculator to determine your tax-free FD corpus at maturity quickly.
This kind of tax saving FD is accessible at all branches for convenience.
You can easily transfer your State Bank of India tax saver FD among branches.
Senior citizens can enjoy higher returns from the tax-saving FD SBI interest rate which provides an additional interest of 0.25% to 0.5% than regular customers.
This FD scheme is eligible for a deduction of up to ₹1.5 lakhs under Section 80C of the Income Tax Act.

SBI Tax Saving FD Scheme Eligibility

To get the Tax Saving FD SBI interest rate, you need to meet the following eligibility criteria:

An Indian resident above 18 years old can open the account individually or jointly.
You must possess a valid PAN card.
Minors can open this account along with their parents.

Documents Required to Open a SBI Tax Saving FD Scheme

Here is a list of essential documents you need to submit to open a SBI tax saving FD:

Tax Saving FD account opening application form
Proof of identity – Aadhaar card, Voter card, NREGA card, Job card, driving licence, etc.
Proof of address – PAN card, Passport, utility bills, etc.
Your two recent passport-size photos

You can also contact the SBI customer support team to get more information on the documents you need.

How to Open a SBI Tax Saving FD Online?

Follow the below-mentioned easy steps to open a Tax Saving FD online and secure SBI Tax Saver FD interest rates:

Step 1: Go to the online banking portal of SBI.
Step 2: Log in to your account with the username and password.
Step 3: Next, in the home page will be displayed under which you will get the option for ‘e-fixed deposit’. Click on it.
Step 4: You will get the option to choose from e-STDR or e-TDR under the IT Saving Plan option.
Step 5: Click on the ‘Continue’ button.
Step 6: Select the account from where you want to transfer the amount and choose from the ‘General Citizen’ or Senior Citizen’ option.
Step 7: Select whether you want to opt for non-cumulative FD or cumulative FD.
Step 8: Enter the amount and choose your FD tenure.
Step 9: Go through the Terms and Conditions and then click on the ‘Submit’ button.

A confirmation message of your tax saving fixed deposit of SBI will appear on the screen.

Terms and Conditions of SBI Tax Saving Scheme

The following is a list of the terms and conditions of SBI tax saving FD:

You cannot take out your money from the term deposit for 5 years.
After 5 years, you can close it early following the rules for premature closure.
If the account holder dies, the nominee or legal heirs can withdraw the deposit anytime, before or after maturity.
If one person in a joint account dies, the other can take out the deposit before it matures, with the applicable interest and no penalty.

Final Word

The SBI tax saving FD is very much similar to regular FD accounts. However, it provides an added advantage to anyone who aims to save money on taxes. By investing in a SBI tax saver fixed deposit, you can avail tax benefits under Section 80C of the Income Tax Act, of 1961.

Moreover, here your returns won’t be attached to market-related risks. Thus, you will get assured returns at the end of the investment term. You can easily open a SBI tax saving FD online or visit your nearest branch for assistance.