Country’s largest lender, State Bank of India (SBI), provides the option of opening different types of savings account. Apart from the regular savings account, the bank offers fixed deposit (FD), recurring deposit (RD), salary account and SBI Savings Plus Account. Depending upon the need, the customer can choose to opt for the same.
Let’s take a look at the types of SBI savings account
Basic Savings Bank Account: This account can be opened by any individual provided he/she has valid KYC documents. These accounts are primarily aimed towards enhancing financial inclusion among the economically weaker sections of the society. There is no need to maintain a minimum balance in the account. SBI Basic Savings Bank Account permits maximum of 4 cash withdrawals free of cost in a month, including ATM withdrawals at own and other bank’s ATMs. Thereafter, cash transaction is permitted with a levy of service charges ₹15/ + GST for every additional cash transaction.
Small Account: This account can be opened by any individual above the age of 18 years, who does not have valid KYC documents. There are many restrictions in operation of the account due to the relaxed KYC. The account can be converted to regular savings account upon submission of KYC documents. This account permits a maximum of 4 withdrawals in a month, including ATM withdrawals at own and other bank’s ATMs.
Insta Savings Account: Only resident Indians over 18 years of age, without any tax liability outside India is eligible for opening Insta Savings Account. Customers will be required to maintain a minimum balance as defined for normal savings bank account.
Digital Savings Account: Only resident Indians, over 18 years of age, without any tax liability outside India is eligible for opening SBI Digital Savings Account. Customer will be required to maintain minimum balance as defined for a normal Savings Bank Account.
Special Salary Accounts: Salary Accounts under Corporate Salary Package (CSP) offer a range of privileges to the employees of corporate institutions, including service organisations such as hospitals, hotels, transport corporations etc. The bank offers four package variant—Platinum, Diamond, Gold and Silver, depending upon the net monthly salary of the individual.
Savings Plus Account: In this account, the fund above a threshold limit from the savings account is transferred automatically to a FD or term deposit opened in multiples of₹1,000. The minimum threshold limit for transfer to multi option deposit (MOD) is ₹35,000. The rate of interest offered by Savings Plus Account is the same as offered in SBI Savings Account. A person with a savings bank account in a metro and urban area is required to maintain a monthly average balance of ₹3,000. Customers with accounts in semi-urban and rural branches are required to maintain a balance of ₹2,000 and₹1,000, respectively. If a minimum balance is not maintained in the account, the customer is liable to pay charges on non-maintenance of AMB as applicable.
SBI revised the interest rate on savings account effective 1st November. After the revision, balances of less than ₹1 lakh in savings deposits with SBI is fetching 3.25%. SBI has however kept the interest rate on savings account with balances above₹1 lakh unchanged at 3% per annum. SBI has a deposit base of over ₹30 lakh crore.