Bank of Baroda Super Savings Account - A Detailed Guide
Bank of Baroda has introduced the Bank of Baroda Super Savings Account, specifically catering to the market's HNI (High Net-Worth Individuals) category. A high net worth individual (HNI) is a person with assets of at least Rs 1 crore (US$1.6 million). Since the density of this stratum of society resides in metropolitan cities and urban areas, it targets salaried individuals, businessmen, working professionals, etc., as long as they fall in the HNI category.
The availability of the Bank of Baroda Super Savings Account is limited to the metro and urban centres of the bank.
Various Features of the Bank of Baroda Super Savings Account
- Flexible auto/reverse sweep facility: This feature allows customers to automatically transfer funds between their savings accounts as needed or "sweep" them into a fixed deposit account to earn interest.
Reverse Sweep: Under this facility, if the balance in your account falls below Rs. 50,000/- (the threshold limit), then an amount equal to 10% of the shortfall will be transferred from your Short-Term Deposit Account back into your Savings Account. This is done every Monday morning at 9 am IST.
For Example: If on any particular day, your savings bank account has a credit balance of Rs 48000. On that date reverse sweep feature gets triggered and moves Rs 2000(10 per cent of Rs. 20000) from the previously Fixed Deposit Sweep amount.
Auto Sweep: Under this facility, if the balance in your account exceeds Rs. 50,000/- (the threshold limit), then an amount equal to 10% of the excess will be transferred from your Savings Account into your Short Term Deposit Account. This is done every Monday morning at 9 am IST. Any premature withdrawal from STDL A/c shall attract a penalty as per the bank's extant rules.
For Example: if on any particular day, your savings bank account has a credit balance of Rs 60000. On that date, the auto sweep feature gets triggered and moves Rs 6000 (10 per cent of the excess amount, i.e., Rs 10000) from SB A/c to STDL-A/C.
- Immediate credit of outstation cheques up to Rs. 25,000: Outstation cheques are those drawn on a bank branch located outside the customer's home city or state. This feature allows customers to receive credit for these types of cheques more quickly than if they were deposited at a local branch.
- Quarterly payment of interest: Interest is paid out on the balance in the account every quarter (three months). This can help customers save money faster than if they only got interest payments less often (like once a year).
- Safe deposit lockers on a priority basis: Customers with this type of bank account have priority access to safe deposit box rentals at branches where these are available. This can be helpful for storing important documents or valuables securely.
- Free offering of any branch banking: Customers can use any branch of the same bank free of charge, regardless of whether it is in their home city or state.
- Freestanding instructions: Standing instructions allow customers to automate regular payments from their accounts, such as utility bills or loan repayments. This feature can save time and ensure that payments are made on time without the need for manual processing each month.
- Free unlimited chequebook facility: Customers can order chequebooks free of charge, and there is no limit to the number of books they can request. This is convenient for customers who frequently write cheques or need to have several books on hand at all times.
- Free transfer of the account to any of the bank's branches: If a customer moves to a new city or state, their account can be transferred to any branch of the same bank without incurring any fees.
- Discounted maintenance charges on the Demat accounts, avail up to 25% discount on the annual maintenance charges.
Diving Deeper into the Auto Sweep/Reverse Sweep Feature
- The minimum amount required to make the first sweep would be Rs.60,000, as a minimum of 50,000 is to be maintained in the savings account, and the minimum first sweep to get started would be Rs.10,000.
- The minimum threshold to maintain the sweep functionality is Rs.50,000. This amount cannot be reduced. However, this amount can be increased in multiples of Rs.1000. Eg. Rs. 52,000... Rs. 53,0000.. so on and so forth.
- The sweep amount can only be increased in the multiples of Rs. 10,000, so if you want to increase the sweep amount, you will have to add in the Rs. 10,000 increments.
Documents Required to Open a Baroda Super Savings Account
Following are the documents required for the validation of the know your customer (KYC).
- PAN Card
- Form 60 (in case the PAN card is not available)
Since this is a finance-related service, you are required to furnish the permanent account number (PAN) as per the Reserve Bank of India guidelines.
For identity Proof declaration, any of the following documents will be considered valid,
- Driving License
- Aadhaar Card Number
- Voter's Identity Card issued by the (ECI) Election Commission of India
In case the above standard identity proof documents are not available, you will have to furnish the following,
- Job card that has been issued by NREGA signed by a State Government Officer
- A National Population Register declaring the name and the address of the individual
Other Documents that are considered in case of discrepancies or issues in the details of the above documents,
- Electricity Bill
- Telephone Bill
- Postpaid Mobile Bill
- Piped Gas Bill
- Water Bill (only the bills of the last two months are considered)
- Property Tax Receipt
- Municipal Tax Receipt
- Pension Payment Orders (PPOs) that are issued to retired public servants containing the address
Documents required for NRI, PIO, and OCI
Bank of Baroda even allows Non-Resident Indians (NRIs), Persons of Indian Origin (PIO), and Overseas Citizens of India (OCI) to apply for their super savings account.
Following are the documents that need to be furnished in case the person is a Non-Resident Indian(NRI), a Person of Indian Origin (PIO), and an Overseas Citizen of India (OCI).
- Valid Visa
- PAN Card or FORM 60
Following are the documents that need to be furnished by an individual to validate their foreign address proof.
-A document issued by the government of the foreign jurisdiction which states the name and current overseas address of the applicant, such as a driver's license, national identification card, social security card, employee card or labour card.
-A utility bill from any service provider (electricity, telephone, etc.) which is not more than two months old.
-A letter of allotment of accommodation or leave and license agreement from an employer allocating official accommodation.
Documents required for foreign nationals to open a Bank of Baroda Super Savings Account
Following are the documents that need to be furnished in case the person is a foreign national.
- PAN Card or FORM 60 in case the PAN is not available
- A foreign passport that is valid
- An Indian Visa that is valid
Proof of address mentioning the current overseas address
- Driving license from another country
- The documents include those issued by government departments and those issued by foreign governments, such as National Identification Cards, Green Cards, and Social Security Cards with the Name and Address of the Foreign National.
- Letter Issued by Foreign Embassies or Missions in India containing the Name and Address of the Applicant.
Documents required to create a Bank of Baroda super savings account for companies or businesses
- Accounts of Companies
- Accounts of Sole Proprietary firms
- Accounts of Partnership firms
Documents required for the Accounts of Companies
The document that is most important is the certificate of incorporation. This document shows that the company is legally registered and operational.
Next, the memorandum and articles of association document set out the rules and regulations that the company must abide by.
Finally, the PAN number is important because it identifies the company for tax purposes.
All of the above documents must be present in order for the company to be operational. In addition, a power of attorney must be granted to managers, officers or employees so that they can conduct business on the company's behalf. This document must also have their photograph attached.
Documents required for the Accounts of Sole Proprietary firms
The document required for a sole proprietor is the registration certificate. This document shows that the business is registered and operational.
Next, the certificate or license issued by the municipal authorities under Shop & Establishment Act shows that the business is complying with local regulations.
Sales and income tax returns are also important because they show how much revenue the business is generating.
Finally, the CST/ VAT/GST Certificate (Provisional/Final) proves that the business is paying its taxes.
Documents required for the Accounts of Partnership firms
The document required for the accounts of a partnership firm is the registration certificate. This document shows that the firm is legally registered and operational.
Next, the partnership deed sets out the rules and regulations that the firm must abide by.
Finally, the PAN number is important because it identifies the firm for tax purposes.
All of these documents must be present in order for the firm to be operational. In addition, a power of attorney must be granted to a partner so that they can conduct business on the firm's behalf. This document must also have their photograph attached.
Bank of Baroda super savings account also allows entities that are not individuals to apply for their account creation
Following are the entities that are considered,
- Accounts of Trusts
- Accounts of Unincorporated Associations or body of individuals includes unregistered ones
- Partnership firms/ trusts and societies
- Accounts of Hindu Undivided Family
- Accounts of the Government or its Departments, societies, universities and local bodies like village panchayats etc.
- Account of Political Parties
Fees and Charges of Bank of Baroda Super Savings Account
The Baroda Super Savings Account comes with a number of fees and charges associated with it.
The most important ones are:
-The chequebook facility is free for all customers. However, if a customer wants to avail of the Passbook facility, they will have to pay Rs.50 per passbook.
-There is also an initial account opening charge of Rs.50, which is applicable per half year.
-For availing the statement with the latest balance service, customers will be charged Rs.50.
-If the account holder does not maintain the minimum Quarterly Average Balance (QAB) of Rs. (20,000), then a penalty fee of Inoperative Account Charges will be levied.
- So, the Bank of Baroda super saver account minimum balance is effectively Rs.20,000
- The charges for not maintaining the minimum balance of Rs. 20,000 is about Rs. 1000 per quarter
-In case of premature closure of accounts within one year from the date of opening, the bank shall levy prematurity charges @500/- + GST as prevailing from time to time.
-In the case of Outstation Cheques, customers will be charged Rs.200 per cheque + out-of-pocket expenses.
-If a customer wants to add or delete a nominee from their account, they will be charged Rs.25 per addition or deletion.
-The Debit Card Annual Fee is Nil for the first year, and after that, it is chargeable at Rs.100 p.a.
-For Debit Cards, there is no fee for the first year, but starting from the second year onwards, it is chargeable at Rs 100 p.a.
-There is no Debit Card Renewal Fee for customers.
-However, if a customer wants to replace their debit card, they will be charged Rs.200, and in case they want to regenerate their PIN, the charges are Rs.150 per regeneration.
-For transactions at Bank of Baroda ATMs, there are no charges, but for other banks' ATMs, the first five transactions in a month are free, and after that, every transaction is chargeable at Rs 20/-.
-GST of 18% is applicable on all banking products and services from July 1, 2017.
Bank of Baroda Super Savings Account Interest Rate
The Interest rates on term deposits & NRO deposits are the amount of interest that the bank will pay to the account holder for keeping their money in a savings account or other type of deposit account with the bank. The interest rate will vary depending on how much money is deposited and for how long it is kept in the account.
The tenor periods are the length of time that the money is kept in the account. The interest rate will vary depending on how long the money is kept in the account.
Following is the interest rate paid for the tenors by the bank of Baroda,
7 – 14 days: 4%
15 – 45 days: 4%
46 – 90 days: 4.25%
91 – 180 days: 4.75%
181 - 270 days: 4.75%
271 and below one year: 4.75%
One year: 5%
Above one year and under two years: 5%
Above two years and under three years: 5%
Above three years and under five years: 5%
Above five years and under ten years: 5%
Frequently Asked Questions (FAQs):
1.What documents are required if a foreign nationality student wants to open the Baroda Super Savings Account?
The bank considers the following documents in the case of a Foreign Student,
- Photocopy of the said student's passport and visa
- An Identity Card issued by the current college or the institution the student is currently studying at
- An admission letter issued by the current college or the institution the student currently is studying at for the course mentioning the duration of the course
- Hostel allotment letter, signed by the authorized signatory, on letterhead of the institution/college, stating the exact address and location of the hostel, room number, etc. The date of allotment of hostel accommodations, etc. A valid local address proof in the form of a lease agreement must be provided within 30 days of opening the account.
2.Will I be fined if the minimum balance is not maintained?
Yes, there is a fine associated with the non-maintenance of the minimum balance. Bank of Baroda calculates the fine in terms of minimum quarterly average balance (QAB).
3. How is the minimum QAB calculated?
The minimum quarterly average balance (QAB) requirement is calculated on the basis of the summation of the closing balance of the number of days divided by the number of days. For Example, if the closing balance for a period of 30 days is Rs. 1,000, then the minimum QAB would be:
Minimum QAB = (1,000/30) * 4 quarters = Rs. 133.33
4. What is the bank of Baroda super saver account minimum balance amount?
The minimum balance that is required by the account holder to be maintained is Rs. 20,000.
5. When does an account be deemed inactive or dormant?
The account becomes inactive or dormant when there are no customer-induced transactions in the Bank of Baroda Savings Accounts for two years. However, the bank continues to pay the interest towards the deposited amount. The bank does not levy any kind of fine for being inactive for long periods of time. But the customer will need to reverify and go through the KYC process again in order for them to start operating their Bank of Baroda super savings account again.
6. What happens when the Bank of Baroda super savings account has remained inactive for a period of more than ten years?
A deposit account that has been inoperative or dormant for a period of ten years or longer will be considered an unclaimed deposit and will be transferred to the Reserve Bank of India. Some conditions must be met before the bank will return such deposits upon receiving the request from the customer.