SBI launches green rupee fixed deposit (FD): Who can invest, interest rate, how to buy
State Bank of India (SBI) has introduced a new deposit program called “SBI Green Rupee Term Deposit” to raise funds to assist the bank’s green efforts.
SBI Green Rupee Term Deposit details
Only resident persons, non-individuals, and NRI customers (for NRI customers, the product should be accessible in NRO and NRE deposits) can invest in SBI Green Rupee Term Deposit details. The minimum investment is Rs 1,000 and there is no limit on maximum amount. This is not available for for MOD, Tax Saving, Annuity, RD Scheme etc.
Is TDS applicable to SBI Green Rupee Term Deposit
According to the SBI website, “TDS is applicable as per Income Tax Rules. Customer may submit Form 15G/ 15H as per rules for non-deduction of TDS.”
Currently, FD is subject to a 10% TDS (Tax Deducted at Source) deduction. in the event that a financial year’s total interest earned on FDs surpasses Rs. 40,000. Nevertheless, 20% of TDS is withheld if the investor’s PAN is unavailable. This means when interest generated on FD surpasses Rs 40,000 during a fiscal year is the TDS imposed. The senior citizen cap is Rs 50,000.
How to Avail TDS Waiver on Fixed Deposit (FD)?
According to the Bank of Baroda website, “To avail TDS waiver on FD, one has to submit Form 15G and Form 15H to the concerned bank. These are self-declaration forms that one must submit to the bank where they hold an FD account, requesting not to deduct TDS on FD interest income because their income is under the basic exemption limit.”
SBI savings account holder can submit Form 15G/15H via Net banking
Step 1: Visit www.onlinesbi.com and login to your account.
Step 2: Once logged in, select ‘Form-15G/Form-15H’ option under the ‘e-Services’ tab.
Step 3: A new tab will open. You will be required to select the ‘CIF Number’. Once CIF number is selected, click on submit. The CIF number mentioned on the screen can be cross-checked from the first page of your bank passbook.
Step 4: Select the branch code where the form is required to be submitted and click on submit.
Step 5: Part-1 of the Form-15G/Form 15H, as applicable, will show details such as name, PAN of the assessee, address etc.
Step 6: Once the required details are correctly mentioned in Part-I, then click on submit. A new tab will open where you will have to the details once again. Once the details are checked, click on ‘Confirm’.
Step 7: A one-time password (OTP) will be sent to your registered mobile number. Enter the OTP and click on confirm.
A UIN number will be created as soon as the form is properly submitted.
