State Bank of India is a Government-owned corporation whose roots trace back to British India making it the oldest commercial bank in the Indian Subcontinent.
Revision of Interest Rates on SBI Savings Bank Deposits With Effect from jan 2019
|Sr No||Particulars||Rate of Interest|
|1||Saving Deposits Balance upto Rs. 1 crore.||3.50% p.a|
|2||Saving Deposits Balance above Rs. 1 crore.||4.00% p.a|
SBI Savings Account Interest Rates & Minimum Balance Required Updated on 22 Mar 2019
|Savings Account||Interest Rate||Minimum Balance Required||Debit Car Issued|
|Savings Plus Account||4.00%||INR 25,000||Basic ATM-Debit Card|
|Yuva Savings Account||4.00%||Not Required||Multiple variants|
|Basic Savings Account||4.00%||Not Required||Basic ATM-Debit Card|
|Small Savings Account||4.00%||Not Required||ATM cum Debit Card|
|Savings Account For Minors||4.00%||Not Required||Photo ATM cum Debit Card|
Following the revisions in charges by major private sector banks, SBI has released a list of charges that will be levied on accounts from the financial year starting 1st April, 2017. SBI will be reintroducing penalty on accounts without a minimum balance, after doing away with the charge for the past 5 years. The bank will also charge cash transactions after a specified limit is reached.
Listed below are the amendments in detail:
- SBI will charge Rs.50 for every cash transaction following the first three cash deposits each month. This limit is relevant to savings accounts only.
- For current accounts, the penalty on cash transactions could be as high as Rs.20,000.
- Bank accounts will have to retain a minimum Monthly Average Balance (MAB).
- If the MAB is not maintained, charges up to Rs.100 plus service tax can be levied.
- The MAB and charges vary according to the location of the bank. It is set to a minimum level in rural branches.
- In metros such as Chennai, Delhi, Mumbai, and Bengaluru, a charge of Rs.100 + service tax will be levied if the balance goes below 75% of the minimum balance.
- If the account falls short of 50% of the MAB, the charge will be Rs.50 + service tax.
- The first three cash withdrawals in a month from other bank ATMs will be free. Following this, a charge of Rs.20 will be levied.
- The first five cash withdrawals in a month from SBI ATMs will be free. Following this, a charge of Rs.10 will be levied.
- If the account has a balance of at least Rs.25,000, then the account holder will not be charged for withdrawals from SBI ATMs.
- In order to withdraw from other bank ATMs without any charges, the account holder has to maintain a minimum balance of Rs.1 lakh in the account.
- Debit card holders will be charged Rs.15 per quarter for SMS alerts, provided that the account has an average quarterly balance of up to Rs.25,000.
- UPI/USSD transactions of up to Rs.1,000 will not be levied any charges.
Why Choose SBI Savings Account?
Through its network of branches in India and overseas, SBI provides a range of financial products including the SBI Savings Account. The savings account has a variety of benefits and services. The most attractive features are that the savings account does not require a minimum balance and provides ATM/Debit card, net banking and mobile banking facilities.
Key Benefits Of SBI Savings Account
- Internet Banking, Mobile Banking, Kiosk Banking
- Transfer accounts to any SBI Branch without changing the account number
- Passbook issued free of charge
- Multicity cheques
- Safe Deposit lockers
- Nomination facility
- Personal Accident Insurance available at a nominal premium
- No inter core charges for transfer transactions
- Multiple variants of ATM/Debit Cards like Gold Card, International ATM/Debit Card, etc.
- Can be linked to Multi Option Deposit (MOD) Account
- Mobile Banking provides a host of services like funds transfers, interbank mobile payment services (IMPS), enquiry and statements, cheque book request, utility bill payments, mobile recharges, and M-Commerce.
- Some of the facilities of Internet Banking are opening and closing fixed and recurring deposits, transferring funds (RGTS, NEFT and Western Union Money Transfer), paying utility bills, online shopping, viewing statements and Demat operations, e-Tax filing, and setting standing instructions.
- The ATM/Debit card can be used for balance enquiry, withdrawing money, paying insurance premium, shopping, donations and card-to-card transfers.
- If the savings account is linked to a Multi Option Deposit, in case there is a shortfall in the account to honour a cheque, there is an automatic break up of MOD to ensure the cheque doesn’t bounce. MOD can also be broken through ATM withdrawals.
Revised SBI Monthly Average Balance Charges
In response to the grievance and sentiments of its customers, State Bank of India has revised its monthly average balance penalty for non-maintenance of savings account drastically. The move will now benefit its 25 crore savings account holders. The revised changes will be applicable from 1 April, 2018 and as per the source, for customers holding an SBI savings account in an urban area, the maximum penalty for non-maintenance has been reduced from Rs.50 + GST to Rs.15 + GST, for semi-urban accounts it has been revised from a maximum of Rs.40 + GST to Rs.12 + GST and for rural savings accounts it has been reduced from a maximum penalty of Rs.40 + GST to Rs.10 +GST. Listed in below in the table are the revised penalty charges for non-maintenance of savings accounts held with State Bank of India, based on the area the account is held in and the shortfall percentage.
|Metro and Urban areas Average Monthly Balance Requirement = Rs.3,000||Current penalty charges (For non-maintenance)||Non-maintenance charges applicable from 1 April, 2018|
|For a shortfall equal or less than 50%||Rs.30 + GST||Rs.10 + GST|
|For a shortfall more than 50% and less than 75%||Rs.40 + GST||Rs.12 + GST|
|For a shortfall more than 75% of the monthly average balance requirement||Rs.50 + GST||Rs.15 + GST|
|Semi-urban areas Average Monthly Balance Requirement = Rs.2,000||Current penalty charges (For non-maintenance)||Non-maintenance charges applicable from 1 April, 2018|
|For a shortfall equal or less than 50%||Rs.20 + GST||Rs.7.5 + GST|
|For a shortfall more than 50% and less than 75%||Rs.30 + GST||Rs.10 + GST|
|For a shortfall more than 75% of the monthly average balance requirement||Rs.40 + GST||Rs.12 + GST|
|Rural areas Average Monthly Balance Requirement = Rs.1,000||Current penalty charges (For non-maintenance)||Non-maintenance charges applicable from 1 April, 2018|
|For a shortfall equal or less than 50%||Rs.20 + GST||Rs.5 + GST|
|For a shortfall more than 50% and less than 75%||Rs.30 + GST||Rs.7.5 + GST|
|For a shortfall more than 75% of the monthly average balance requirement||Rs.40 + GST||Rs.10 + GST|
How To Open SBI Savings Account Online?
The SBI online savings account opening procedure is simple.
- Any Indian resident can open a SBI savings account online by visiting the SBI website. Under personal banking, go to “Deposit schemes”, you will find the option of savings bank account.
- It is important to read the benefits, rules and regulations before clicking on the “apply online” option.
- Fill in all the details in the online application form.
- A TCRN (Temporary Customer Reference Number) will be generated and sent to the registered mobile number.
- Visit the nearest SBI branch within 30 days with the required original documents and your account will be opened.
- Print out the Account Opening Form (AOF)
- Proof of identity and address (Passport, Voter’s ID, Driving Licence, Aadhar card, NREGA card, PAN card)
- 2 recent passport-size coloured photographs
- In the case of minors below the age of 10, ID proof of the person who will operate the account is required. If the minor can operate the account independently, the regular procedure will be applicable.
Types Of SBI Savings Account
Savings Plus Account With SBI
- This type of account is linked to Multi Option Deposit (MOD) where surplus funds crossing the upper limit of the savings bank account is automatically transferred to Term Deposits.
- This scheme will retain a minimum of Rs. 25,000 in the savings account.
- The term deposits will be opened in multiples of Rs. 1000 with a minimum of Rs. 10,000 at one instance.
- The account holder can choose the tenure of the deposit of 1 to 5 years.
- Yuva Savings Account With SBI
- This type of savings account is specially designed for youths between the age of 18 and 30 years.
- The account debit card has concessionary and complimentary facilities which are given free of cost.
- One draft/banker’s cheque per calendar month will be issued free of cost favouring educational institutions or job applications.
- The account will continue even after the account holder has attained the age of 30 years.
- This account is to enable the common man to access basic banking facilities.
- A basic savings account cannot be opened if the person already has a savings account. If the person holds a savings account, it needs to be closed within 30 days of opening this basic account.
- Regular savings account eligibility and documents are required to open this account.
- There is no minimum or maximum limit. Cheque book will be issued.
- A basic ATM/Debit card will be issued free of cost subject to a maximum of 4 withdrawals per month, after which the regular service charge is applicable.
- Any credit through online funds transfer will be free.
- Deposit of cash and deposit/collection of cheques drawn by Central/State Government will be free
- No charge applicable on activation of inoperative accounts
- Any other services not mentioned will be charged the regular service fee.
- A small account is provided to people who cannot meet the KYC (Know your customer) requirements. The procedure for opening this account is liberalised and a simplified account opening form is used. There are a number of benefits to this account:
- There is no minimum balance or initial deposit required
- Fund transfer credits through NEFT/RTGS are free of cost
- Deposits/cheques drawn by Central/State Government are free
- A basic debit card is issued for free with no annual maintenance charge.
- Conversion to regular Savings Bank account would be done by the home branch manually if KYC requirement is met.
- However this account has a number of restrictions.
- The upper limit is Rs. 50,000
- A basic ATM/debit card is issued subject to a maximum of 4 withdrawals per month on the debit card, after which the regular service charge is applicable.
- All credits in the financial year should not exceed Rs. 1 Lakh Withdrawals and transfers in a month should not exceed Rs 10000/.
- Foreign remittances can be credited only if the identity of the client is fully established through submission of official valid documents.
- The account will be operational only for 12 months. If the account holder can provide proof of application for any official valid document, then the account can be extended by another 12 months.
- This type of account aims at exposing minors to banking and the current features like mobile and Internet banking so that they are acquainted with modern-day banking and also understand the importance of savings and personal finance.
- Minors below the age of 10 years can avail of the PehlaKadam scheme which requires the parents/guardian to jointly open and operate the account.
- The parents/guardian will have to submit required documents. Minors above the age of 10 can avail the PehliUdaan scheme and operate it individually provided that the minor complies to the KYC norms.
- There is a “per day limit” to ensure money is spent wisely.
- No minimum balance. Maximum is Rs. 5 lakhs.
- Mobile banking subject to a transaction limit of Rs. 2,000 a day.
- Internet banking subject to a transaction limit of Rs. 5,000.
- Personalised cheque books/and pass book.
- Photo-embossed debit card with a withdrawal/POS limit of Rs. 5000.
- Can set up one standing instruction for recurring deposit free of charge.
- Interest at 4% p.a. calculated on a daily balance.
- Nomination facility.
- No inter core charges for transfer of funds.
- Auto sweep facility available wherein excess of Rs. 20,000 will be invested in fixed deposits in multiples of Rs. 1,000 subject to a minimum of Rs. 10,000.
- Can transfer accounts to any SBI Branch without changing account number.
- Extra benefit of Smart Scholar - Child Plan offered by SBI Life. It comes with an inbuilt premium waiver benefit and loyalty additions.
- Personal Accident Insurance cover for the parent.
- Overdraft facility is available for parents/guardian or in case of corporate salary package, 2 months salary subject to satisfying other terms and conditions.
SBI Salary Accounts
SBI provides salary accounts with special features and benefits to employees of corporates, universities, colleges, schools, Government establishments, railways, police and defence personnel, and so on. There are four types of accounts depending on the gross monthly income or designation of the employees, i.e., Silver Gold, Diamond and Platinum accounts.
The salary accounts come with benefits like:
- Zero Balance accounts
- Unique Lifetime Account number
- Auto sweep facility on request wherein surplus savings will automatically be invested in term deposits in multiples of Rs. 1,000.
- Free personalized multicity cheques
- Free debit card
- RGTS/NEFT with free core power
- Easy overdraft up to 2 months' salary repayable within 6 months
- Free personal accident insurance (For more details and current policy, visit the bank’s official website)
- SMS and email alerts
- Various personal loans
- Demat facility
- Mutual funds investment plans
|Domestic Cards||Rs. 40,000|
|Gold Cards||Rs. 50,000|
|Platinum Cards||Rs. 1,00,000|
Types Of Salary Accounts With SBI
There are 8 types of salary accounts:
.Corporate Salary Package
This package can be customised to suit the corporate/institution depending on the business relationship it has with the bank. Institutions include hospitals, hotels, transport corporations and so on. To avail this account, the company should have a minimum of 25 employees with a gross monthly income of Rs. 5,000. The type of account given, i.e, Gold, Silver, Diamond or Platinum will depend on the gross monthly income of the employees.
Central Government Salary Package
This account can be availed for employees of various ministries/departments of the Central Government, RBI and Nabard. Types of accounts vary according to the designation of the employees.
State Government Salary Package
This account can be availed for employees of State Government, Union territories and their boards and corporations. The type of account will depend on the designation of the personnel.
Railway Salary Package
This account can be availed for employees of Indian Railways, Kolkata Metro, Delhi Metro, Bangalore Metro, Mumbai Metro, Konkan Railways. The type of account will depend on the designation of the personnel.
Police Salary Package (PSP)
This account is designed for employees to the employees of Central Police Organizations (other than Central Para Military Forces), Armed Police and Reserve Police of all States, Civil Police, Police Forces of The Union Territories (Under The Control Of The Central Government), Railway Protection Force (RPF) (under the Ministry of Railways, Central Government) and Government Railway Police (GRP) - (part of State Police Force). The type of account will depend on the designation of the employees.
Defence Salary Package
This account is available for serving and retired Defence personnel of Army/Navy/ Air Force/Indian Coast Guard/Assam Rifles, as well as Rashtriya Rifles (RR) and GREF [Border Road Organization (BRO)] who have their Salary/Pension accounts with SBI.
The type of account will depend on the rank of the personnel of Army, Navy ,Air Force, Assam Rifles, RR and GREF. PBORs (Personnel Below Officer Rank) are categorized in Silver, Officers fall under Gold, Diamond and Platinum.
Para Military Salary Package
This package can be availed for serving personnel of the following Central Paramilitary Forces (CPMFs) having their Salary accounts with SBI.
- Central Reserve Police Force : (CRPF)
- Border Security Force : (BSF)
- Central Industrial Security Force : (CISF)
- Sashastra Seema Bal : (SSB)
- Indo Tibetan Border Police : (ITBP)
- National Security Guard : (NSG)
The type of account depends on the rank of the personnel of the paramilitary forces.
Indian Coast Guard Salary Package (ICGSP)
This package is available for serving and retired personnel of Indian Coast Guard having their Salary/Pension accounts with SBI.
The type of account depends upon the rank of the personnel of Indian Coast Guard. PBORs will be eligible for Silver accounts, Officers are eligible for Gold, Diamond and Platinum.
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