Resident Indians as an individual or in the capacity of the Karta of the Hindu Undivided Family (HUF) are eligible to invest in this scheme, according to SBI. Also, applicants need to have a Permanent Account Number (PAN) to invest in this scheme.

The names, mode of operation and home branch of newly generated tax saving deposit account is same as in debit account, from which fixed deposit account is funded. However, in case of joint accounts only, the first holder is only eligible for deduction from income under section 80C of Income Tax Act, according to SBI.

One can open a tax saving fixed deposit with a minimum amount of Rs 1,000.

The maximum amount that can be deposited under the tax saving FD scheme is Rs 1.5 lakh in a financial year.

The rate of interest for the scheme, is similar to that on fixed deposits. SBI revised its interest rates on term deposits with effect from August 1, 2019. The interest rates for retail deposits below Rs 2 crore is 6.50 per cent for general public and 7 per cent for senior citizens in maturity period of 5 years and up to 10 years.

Customers cannot withdraw the fixed deposit before the expiry of five years from the date of its receipt, according to SBI.

Premature closure of fixed deposit under tax saving scheme is also not allowed during the lock-in period. After 5 years, investors can close it through the home branch only. In case of death of depositor, legal heir of depositor can pre-maturely close it through home branch only.

Senior citizen can avail additional rate of interest under tax saving FD scheme by exercising the relevant option. The date of birth in bank's record is considered for age validation. The minimum days and minimum amount applicable for additional rate of interest for senior citizen is as per bank's policy. In case of joint accounts, the senior citizen benefit can be availed only if the first account holder qualifies for this benefit, according to SBI.

A nomination facility is also available with SBI's tax saving scheme.