SBI Savings Account – Online Application, Interest Rates, Zero Balance Account

Saving money is a good habit. Saving money can be a very good step for the future. Too many people underestimate the quality of saving money. Many of the consumers do have a checking account, credit cards, and debit cards, but still, there are many people who do not have a savings account set up. In this article, we are going to talk about the SBI Savings Account, how to open it online, what are its types and much more.

An SBI Savings Account is a deposit account that is present in a bank or any other Financial Institutions that provides a modest interest rate. SBI Savings account can be opened by any customer, irrespective of their income group and the age criteria. Different banks in India offer specialized accounts for different types of customers, according to their requirements.

Some Relevant Links
SBI Credit Cards	Click Here
SBI Credit Card Customer Care Number	Click Here
Check SBI Bank Account Balance	Click Here
SBI PPF Account	Click Here
Link Aadhaar Card With SBI Bank Account	Click Here
SBI Bank IFSC Code	Click Here

About the SBI Bank

The State Bank of India is a Government-owned corporation. It is an Indian multinational, public sector banking and a financial services company. The bank has its headquarters in Mumbai, Maharashtra. The bank was nationalized on 2^nd June 1956. SBI provides a wide range of products and services. The products that the bank provides are Consumer Banking, Corporate Banking, Finance and Insurance, Investment Banking, Mortgage Loans, Private Banking, Private Equity, Savings, Securities, Asset Management, Wealth Management, Credit Cards. SBI has 14 Regional Hubs and 57 Zonal Offices that are located in the important cities throughout India. The State Bank of India has more than 24, 000 branches and 59, 291 ATMs.

Interest Rate on SBI Savings Bank Deposit Dated 31^st July, 2017

S No.	Particulars	Rate of Interest
1	Savings Deposits Balance up to Rs 1 Crore	3.50%
2	Savings Deposits Balance above Rs 1 Crore	4.00%

SBI Savings Account Interest Rates and Minimum Balance Required

 

Savings Account	Interest Rate	Minimum Balance Required	Debit Card Issued
Savings Plus Account	4.00%	Rs 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

State Bank of India Revision of Charges 2017

The SBI has released a list of charges that will be levied on the accounts starting from the Financial Year 1^st April 2017. SBI has introduced penalty method on the accounts which have no minimum balance. After doing away with the charge for the past 5 years, the SBI will also charge cash transactions after reaching a specific limit.

Below mentioned are the amendments in details

• SBI will charge Rs 50 for every cash transaction following the first three cash deposits in each month. This limit is relevant to the savings account only.
• For the 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 Monthly Average Balance is not maintained, then a charge of Rs 100 plus the service tax is levied.
• The MAB and the charges vary according to the location of the Bank. In Rural bank branches, it is set to minimum level.
• In metro areas such as Chennai, Delhi, Mumbai and Bengaluru, Rs 100 plus service tax is charged if the balance goes down below 75% of the minimum balance.
• If the accounts fall short up to 50% of the Minimum Balance then the charges levied Rs 50 plus service tax.
• The first three cash withdrawals in a month from other bank ATMs will be free. Later, a charge of Rs 20 is levied.
• The first five cash withdrawals from SBI ATMs will be free. Later, Rs 10 will be charged.
• If the account has a balance of at least Rs 25, 000, then the account holder will not be charged from the SBI Withdrawals.
• In order to withdraw cash from any other bank ATM, the account holder has to maintain a balance of Rs 1 Lakh in the account.
• The Debit Card Holders will be charged Rs 15 per quarter for SMS Alerts.
• UPI/USSD Transactions up to Rs 1000 will not levy any charges.

Why SBI Savings Account?

SBI is known to be as one of the trusted banks in India. SBI provides a range of financial products including the SBI Savings Account. The SBI Savings account has a wide variety benefits and services. One of the most attractive features of the savings account is that it does not require a minimum balance and provides ATM/Debit card, net banking and Mobile Banking Facilities.

Benefits of SBI Savings Account

The Benefits of the SBI Savings Account are as follows:

• It provides Internet banking, Mobile banking, Kiosk Banking.
• You don’t have to change the account number while transferring funds from one SBI account to another SBI Account.
• The Passbook issued is free of charge.
• Multicity cheque
• 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.

Additional Benefits

• Mobile Banking provides a various number of the host of services like fund transfers, interbank mobile payment services (IMPS), inquiry and statements, cheque book requests, utility bill payments, mobile recharges and m-commerce.
• The internet banking is also providing multiple numbers of facilities like opening and closing fixed and recurring deposits, transferring funds (RTGS, NEFT and the Western Union, Money Transfer), paying utility bills, online shopping, viewing statements and Demat operations, e-Tax Filing and setting standard instructions.
• The ATM/Debit card is also used to check the balance, withdrawing money, depositing money, paying insurance premium and card to card transfers.
• If the savings account is linked to a Multi Option Deposit (MOD) in case there is a shortfall in the account to honour a cheque. There is an automatic break up of MOD to make sure that the cheque is not bounced. The MOD can also be broken through the ATM Withdrawals.

SBI Savings Account Minimum Balance and Rate of Interest

• No minimum balance is required for opening an SBI savings account.
• The SBI savings account has a rate of interest of 4% per annum. The interest is calculated on a daily balance.

How to Open an Online Account in SBI

The following procedure needs to be followed for opening an Online Account in SBI. The step by step process is:

• Any Resident of India is eligible to open an Online Account in SBI. This can be done by visiting the official website of SBI.

• Now go to the Personal Banking section. Under the Personal Banking Section go to the “Deposit Schemes” there you will find the “Savings Bank Account” option.
• Before “Applying it online” read the instructions, benefits and rules and regulations.
• Fill in all the details that are mandatory in the online application form
• A TCRN (Temporary Customer Reference Number) is generated and sent to your registered mobile number.
• Then visit the nearest SBI Bank branch within 30 days along with the required documents and your account will be opened.

Documents Required for SBI Saving Account

The documents that are required for opening an Online Account in SBI is:

• Printout of the Account Opening Form (AOF).
• Proof of Identity and Address (Passport, Voter’s ID, Driving License, Aadhaar Card, NREGA Card and Pan Card).
• 2 recent passport size photographs.
• For the minors below the age 10, ID Proof of the person is required who will run or operate this account. If the minor can operate the account independently then, the regular procedures are applicable.

Types of SBI Savings Account

Savings Plus Account with SBI

This account is linked to the Multi Option Deposit feature where the funds crossing the upper limit in the savings account are transferred to the Term Deposits. This type of account 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 an instance. The account holder can choose a tenure deposit of 1 to 5 years.

Yuva Savings Account With SBI

This account is specially designed for the youths aged between 18-30 years. The account provides some complimentary facilities free of cost. One draft/banker’s cheque per calendar free of cost favouring all the educational institutions or job applications. This account can be used even if the account holder.

Basic Savings Account with SBI

This is most commonly used bank savings account. This savings account is used by a common man to access all the banking facilities. This account cannot be opened if the person has already a savings account. If a person is holding a savings account then it should be closed within 30 days of opening this basic savings account. To open this type of account it is required to have the eligibility criteria same as that of the regular account and the mentioned documents.

Benefits provided in the Basic Savings Account

• There is no maximum and minimum limit and a chequebook is issued.
• An ATM/Debit card is issued free of cost. These allow a maximum of 4 withdrawals in a month after that regular service charge is applicable.
• Any credit through online transfer is free.
• The deposits of cash and deposit collection of cheques drawn by the Central Government or State Government is free.
• No charge is applied for activating an inoperative account.
• Any other services that are not mentioned above will be charged at regular service fee.

Small Account with SBI 

These types of accounts are provided for those people who do not meet the KYC requirements. The procedure is liberal as a simple account opening form is required. The benefits that the bank provides:

• There is no minimum balance or an initial deposit is required.
• The fund’s transfer credits through NEFT and RTGS is free of cost.
• The Deposits and Cheques drawn by the Central and State Government are free.
• A basic debit card is issued for free with no annual maintenance charge.
• You can also convert this account to regular savings account. All you have to do is visit the home branch manually if the KYC is met.
• The upper limit is Rs 50, 000.
• An ATM/Debit card is issued free of cost. These allow a maximum of 4 withdrawals in a month after that regular service charge is applicable.
• All the credits in the financial year should not exceed Rs 1 Lakh withdrawals and transfers in a month should not exceed Rs 10, 000.
• Foreign remittances can be credited only if the identity of the client is fully established through the submission of the valid official documents.
• The account is only operational for 12 months. The account can be extended after 12 months if the account holder can provide proof of application of any valid official documents.

SBI Savings Account for Minors

This type of account is only meant for the Minors. It provides basic banking features and other additional facilities such as Internet Banking, Mobile Banking etc. They also provide personal finance. The individuals who are below the age of 10 years can also avail a scheme called Pehla Kadam Scheme. This scheme requires the parents or the guardians to jointly open and operate the account. The parents or the Guardians will have to submit the following documents that are mentioned above. The minors can also avail the scheme called Pehli Udaan Scheme and can operate it individually provided that the minors comply with the KYC Norms.

Benefits of the Savings Account for Minors

• It has a “per day limit” facility so as to ensure that the money is spent wisely.
• It has no minimum balance and the maximum limit is Rs 5 Lakh.
• Mobile banking transaction limit is Rs 2000 per day.
• Internet banking transaction limit is Rs 5000.
• Provides personalized cheques and passbook.
• Photo- the embossed Debit card with a withdrawal POS Limit of Rs 5000.
• The rate of interest calculated on a daily balance is 4%.
• It also has a Nomination facility.
• No, inter-core charges are applied for the fund’s transfer.
• “Auto-Sweep” facility is available in excess of Rs 20, 000and will be invested in fixed deposits in multiples of Rs 1000subjec to a minimum of Rs 10, 000.
• You can transfer your funds to any other accounts without changing your account number.
• Extra-benefit of Smart Scholar- Child Plan offered by SBI Life. This plan provides loyalty points as well as premium waiver benefits.

The Pehla Kadam scheme offers Personal Accident Insurance cover for the parent and overdraft facility is also available for the parents and guardians, in case of the corporate salary package, 2 months’ salary subject to satisfy other terms and conditions.

SBI Salary Accounts

The SBI salary accounts provide some special features and benefits to the employees of the corporates, universities, colleges, schools, Government Establishments, Railways, Police and Defense Personnel and so on. There are 4 types of accounts depending on the gross monthly income or designation of the employees i.e. Silver, Gold, Diamond, and Platinum.

Benefits provided by the SBI Salary Accounts

• Zero Balance Account
• Unique Lifetime Account Number
• Auto- Sweep Facility on request wherein surplus savings is automatically invested in term deposits in multiples of Rs 1000.
• Free personalized multicity cheques.
• Debit card
• RTGS/ NEFT with core power.
• Easy Overdraft up to 2 months’ salary repayable within 6 months.
• Free personal accident insurance
• Sms and e-mail alerts
• Various personal loans
• Demat Facility
• Mutual funds Investment Plans