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SBT unveils tax saver term deposit scheme
August, 17th 2006
The State Bank of Travancore (SBT) has unveiled a new deposit scheme, "SBT Tax Saver Term Deposit Scheme", with effect from August 16. As per the scheme, a depositor can claim income tax exemption up to a maximum of Rs 1 lakh under section 80C of the Income Tax Act in a financial year. The deposit has to be made for a period of 5 years and will earn interest at 8 per cent per annum. The annualised return from the deposit will be 9.72 per cent. The SBT tax saver term deposit can be opened in a single name or jointly with another individual including a minor, either as a simple or a cumulative term deposit, according to the bank. Being a tax saver scheme, the depositor's PAN has to be quoted while opening the deposit. The bank added that premature withdrawal or loans were not permitted under the scheme.
 
 
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