Date:18/08/2006 URL: http://www.thehindubusinessline.com/2006/08/18/stories/2006081803280600.htm

Back SBT `tax saver deposit scheme'

Our Bureau

Thiruvananthapuram , Aug. 17

The State Bank of Travancore (SBT) has launched a "tax saver deposit scheme" with effect from August 16, 2006.

The depositor in the scheme can claim income tax deduction up to a maximum of Rs 1 lakh under Section 80C of the Income Tax Act in a financial year, according to a statement from the bank.

The deposit has to be made for a period of five years and carries an interest rate of eight per cent. The annualised return from the deposit will be 9.72 per cent.

The deposit can be opened in single name or jointly with another individual, including a minor. It can be either a simple or a cumulative deposit. Being a "tax saver" scheme, the depositor has to furnish the permanent account number (PAN) while opening the account. .

SBT had recently launched two loan products in the form of overdraft -namely, SBT Max Gain Housing Loans and Multiple Limit OD - against term deposits.