SBI Tax Saving Deposit Scheme – Interest & Annual Yield

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

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 13.33% (from 17.39%) for senior citizens and for others it would be 12.87% (from 16.64%).

Though the investment may be good for you with regards to tax saving but the above calculation would help you to keep realistic returns expectations.

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SBI Tax Saving Deposit Scheme Dec 2012

SBI Tax Saving Deposit Scheme

About Amit

Hi Readers! I am Amit, the mind behind I am MBA from NITIE, Mumbai and BIT from Delhi University. This blog is my online diary where I write about my tryst with my investment decisions. In the 400+ posts on this blog you will find articles on Personal Financial Planning, Investments, Retirement Planning, Insurance, Loans, Fixed Deposits, Provident Funds, Stock Markets, Gold, Silver, Real Estate Investment, Credit Cards, Credit Score, Taxation, Inheritance Planning and Reviews on various Financial Products.

7 thoughts on “SBI Tax Saving Deposit Scheme – Interest & Annual Yield

  1. sunil narayanrao sarwade says:

    i wait to see the yeadly insted how cal and how instments in this scame

  2. […] it myself. Though SBI offers facility of opening Fixed Deposit and Recurring Deposit Online but for SBI Tax Saver FD you need to visit their […]

  3. […] SBI too advertised its tax saving deposit annual yield at 17.39% for Senior citizens and 16.64% for general public, while the actual interest rate on offer was 9% for senior citizens and 8.5% for all others. […]

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