Step 2 Click on tab e-Fixed Deposit and there are 3 option available to select type of deposit account. 

  • e-TDR/e-STDR(Fixed Deposit)
  • e-TDR/e-STDR under Income Tax Saving Scheme
  • e-TDR/e-STDR Multi Option Deposit

​Step 6  Go to open new A/c tab. Enter the amount with which you want to open FD. Select TDR or STDR option. Check the option 'I accept the terms and condition' . And at last click on Submit button

Step 5 Click on Maturity Enquiry tab

​​​Maturity Enquiry tab. Using this tab you can calculate how much total money you will get after maturity of FD. You can calculate this amount before opening FD. 

​Total amount= Amount you invested+interest 

For calculation of amount 

       Enter amount you want to pay for 5 year
       Select STDR or TDR and click on Submit button.


TDR and STDR terms are different types of fixed deposits. TDR means Term Deposit and STDR means special term deposit. Following is main difference between them.

If you are interested on getting periodic payments from your fixed deposit after short period like week, month or quarterly, you have to deposit under TDR scheme. Bank will pay you normal interest rate on your fixed deposit as per the payout option chosen by you. 

If you are not interested in getting periodic payments but looking for interest accrual and a bullet payment at the end of the term then you have to opt for STDR. The advantage with this scheme is that it will be quarterly compounding. The interest is calculated on quarterly basis and at the end of each quarter the same get added to the principal. As a result, your yield to maturity will be higher.

As per my suggestion, if you are not bothered about when you want to receive interest then STDR is preferable as yield is more than what you get in TDR.

Step 3 Since we are going to open 5 year tax saving FD, select second option and click on proceed button.

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FD is fixed deposit. In FD you pay money for only one time for certain period. You can't pay amount based on per month or per year. So if you want to open FD with 10,000 rupee for 5 year and today date is 1 Dec 2015 so If you will open FD today, you have to pay full 10,000 amount today and after 5 year 1 Dec 2020 you will get your money with interest. 

FD in SBI can be open online. In this article I am gonna explain you about 5 year FD for Tax Saving

Under section 80C you can do tax saving on FD upto 1,50,000 

You can open FD in SBI online if you have Internet Banking facility. You don't need to go SBI branch for opening FD account . 

Step1 Go to SBI website and login with user name and password

Note if you are going to open 5 year FD for tax saving and you decide to invest 50,000 for 5 year. In this case you will get tax benefit only for first year in which you have invested money, not for all 5 year. So again next year if you want  tax benefit again you have to open 5 year tax saving FD.

So now if you open FD in 2015 again one in 2016 and one in 2017. All three are 5 year tax saving FD in same branch of same bank. Now in 2017 I am getting interest from all 3 FD and it exceed 10,000 combinedly , and individually its like 4000,4000,3000. In this case bank will deduct TDS as it crossed 10000 in 2017 financial year,

Q Interest earned on FD is taxable ?


Q How tax will be calculated? 

A If interest paid by bank on Fixed deposit (FD) is more than Rs. 10,000 in a financial year then TDS @ 10% will be deducted.

If interest earned is less than 10,000 than Tax will be calculated by adding your total income+ interest earned from FD, now if you your income will fall in 10% or 20% or 30% bracket based on that you have to pay tax. (This is point no 1)

"Interest earned in Saving Bank accounts upto Rs 10,000 is exempted from Tax (moreover, no TDS is applicable even if the interest earned is more than Rs10,000/-.  Interest income above Rs10,000/- is fully taxable.    However, interest income  from other kind of deposits (like from  Fixed Deposits (also called term deposits) /  Recurring Deposits ) are NOT  exempted from tax."

Q Bank will not deduct TDS if interest earned is less than 10,000 rupee?

A Lets understand this thing. If interest earned on all your FD for particular financial year is not crossed limit of 10,000 in this case bank will not deduct TDS. But if interest earned cross limit of 10,000 bank will deduct TDS for that financial year.

Q Does it mean if you earn interest less than 10,000 you don't need to pay Tax?

A No, You will have to pay tax. let us suppose you earned 9000 interest from FD in this case bank will not deduct TDS but you have to pay tax as mentioned in Point no 1

Q Can you open multiple FD is same branch of same bank ?

A Yes

Q Can you open multiple FD in different different bank?

A Yes

Q If you open one FD in SBI and one FD in HDFC bank and in SBI if interest of FD is 9000 and from HDFC bank FD if interest is 9000 In this case what will happen ?

A In this case both bank will not deduct TDS as  amount is less than 10,000 but it does not mean you do not need to pay tax. In such case you need to pay tax as mentioned in Point no 1

Q If you open one Fd in one branch of SBI and second FD in different branch of SBI. How you need to pay tax in this case

A In this case bank will deduct TDS by combining interest earned from both branch when total interest sum will cross 10,000 limit .

The full form of TDS is Tax Deducted at Source.   Thus, when someone deducts tax at appropriate rate at the time of making payment,  then  the amount deducted  is known as tax deducted at sources.   One of the most often case for such TDS is the deduction of  the tax on the interest paid on Fixed deposits to you by all banks.  However, there is no TDS for interest earned on Saving Bank accounts.

Q In which case you don't need to pay tax on FD ?

A If you don't have any other income or your income after adding interest is less than 2,50,00 (even if you earn interest more than 10,000) . In such case you don't need to pay tax . But it doesn't mean bank will not deduct TDS, Bank will deduct TDS if interest earned is more than 10,000 . In this case you need to fill a form and send to bank stating like your income is less than 2,50,000 and you don't fall in any tax bracket.

By Submitting Form 15G/15H: Taxpayer can save TDS deduction on the interest earned by Bank if he submits Form 15G stating that he does not have any taxable income. Senior citizens can submit Form 15H to avoid TDS deduction. 
You are eligible to fill Form 15G and 15H if the final tax on estimated total income computed as per Income Tax Act is nil.

Q What if after adding total income+interest, your total income fall in 20 or 30% bracket?

A If interest earned is more than 10,000 bank will deduct TDS only  @ 10% but that is not enough you need to pay extra tax on remaining amount as you are in 20 or 30 percent bracket.

Q Do banks charge 10 % TDS on interest income on income above Rs 10,000 or on the entire interest income?

A Entire income , For example interest earn is 13000 in this case tds deducted will be 1300 rupee.​


If bank has deducted TDS in this case you don't need to pay any extra tax. Depositors can claim the credit for such TDS in their income tax returns. (Now a days such deducted TDS is reflected in AS26 which can be downloaded and checked before you submit your income tax return. ) Income should be added under the head ‘income from other sources’ in your Return.
One more thing bank will deduct TDS @ 10% if you have provided your PAN card detail. If PAN card details not provided bank will deduct TDS @ 20% 

In this article I have explained you How to open FD online in SBI that can save your tx. For any other information related to FD don't hesitate to contact me.​

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Step 4  After clicking on Process button you can see 3 tab

1) Open new A/C

2) Maturity Enquiry

​3) Scheduled Txn Status

How to open FD in SBI online

Last Updated On 27 Mar 2016