If you want to save tax, apart from the first choice of opening a PPF Account, here is another option, the long term fixed deposit from SBI. It is a no brainer that fixed deposits (or term deposits) attract much higher interest rate than a normal savings account. Under section 80C of Income Tax, a term deposit of at least 5 years duration qualifies for tax exemption.
However, unlike a PPF account, the interest earned here is taxable and is deducted at source (TDS).
If you want to open invest in a Tax saving scheme in SBI, here are the details:
Eligibility: You must be an Individual or a Karta of HUF AND have a PAN
You can open this account wither Singly or Jointly
Minimum deposit is Rs.1000 and further in multiples of Rs.1000
Maximum deposit is Rs.1 lakh per year
Depending on the type of account (Term deposit/ Special term deposit), the interest will be paid quarterly or at once at the time of maturity
Tenure is 5 – 10 years
You can add a Nominee to this account and you can also transfer this account to another SBI branch
However, premature withdrawals and loans on this type of deposit is not allowed.