SBI Salary Account: Benefits, Opening, & Interest Rates
Salary accounts are special varieties of savings accounts offered to salaried individuals. The employer, having a tie-up with the bank, credits the monthly salary of its employees to their respective salary accounts. It’s a win-win for both the employer and the employee. Salary accounts streamline the entire process for the employer and provide lucrative benefits to the employee (as it offers more benefits than a savings account).
An SBI salary account is revered for two fundamental reasons. First, having the coveted title of the largest bank in India with more than 20,000 branches and 60,000 ATMs and ADWMs (Automated Deposit and Withdrawal Machines), most public and private sector institutions associate themselves with SBI. In other words, the employer might already have a salary account link-up with the bank.
Second, from fruitful interest rates and access to the sophisticated net and mobile banking facilities to complimentary insurance covers and other features, an SBI salary account is like an orchestral playing of great finesse. The synchronization and financial harmony level is unparalleled, beautifully complimented by attractive benefits to employers and employees.
In this article, we’ll look at the types of SBI salary account, SBI salary accounts benefits, and the SBI salary account opening procedure.
SBI Salary Account Benefits
The SBI salary account provides multiple benefits to the employer and the employee. Let’s look at them in detail.
SBI Salary Account Benefits to the Employer
First, the employer will enjoy a seamless onboarding process. On request, the officials will visit the institution for the salary account opening of the employees.
Second, the employer can streamline and oversee the entire salary disbursal process. The corporate internet banking system of SBI will enable employers/ institutions to manage the process conveniently.
Furthermore, the employer will be free of the additional charges incurred by the salary administration process. Since the entire process is online, institutions can eliminate intermediary paperwork and executive burden. It’s easy to credit monthly salaries directly to the employee salary accounts instantly and efficiently.
Moreover, SBI does not charge any fee for salary disbursal. And being the largest bank in India, its credibility is beyond reservations.
Also, with about 30 branches and 80 ATMs and ADWMs (Automated Deposit and Withdrawal Machines) in every district, the all-India presence of the bank is an added advantage to PAN-India organizations.
SBI Salary Account Benefits to the Employee
Zero Balance and Unlimited Free ATM Transactions
The salary account is a zero-balance account. Keeping a minimum balance is not necessary. Also, the salary account holder can do unlimited transactions for free through ATMs of any bank.
Complimentary Insurance Covers
The employees can enjoy the security provided by complimentary insurance covers. Depending on the employee’s net salary, they can avail of personal accident death insurance cover (up to Rs. 20,00,000) and air accident death insurance cover (up to Rs. 30,00,000).
Easy Loan Options
The SBI salary account holders enjoy easy loan options at competitive interest rates, including personal loans, home loans, education loans, and car loans. Benefits include a maximum 50% reduction against loan processing charges and lower loan processing time.
The salary account holder will get up to a 25% reduction on locker rent
Demat Account and Online Trading Facility
The employees can avail of Demat and online trading accounts at the time of salary account opening.
SBI Salary Account Interest Rate and Auto-Sweep Facility
SBI salary account interest rate is 4% pa. The employees can enjoy an auto sweep facility to enjoy higher returns while transferring the excess amount in the salary account to a fixed deposit account. The account holder can determine the threshold balance, and the remaining amount will go to the FD account.
Debit Cards, e-Banking, and More
Moreover, the salary account holders will get a free debit card. SBI also waives the monthly maintenance charge of the salary account debit card. In addition, they can also avail of an add-on card for spouses/parents for a joint salary account.
They can enjoy SBI’s state-of-the-art internet banking and mobile banking services, SMS alerts, and online NEFT/RTGS services. Also, SBI will waive issuance charges on demand draft and multicity cheques for salary account holders.
Account holders can also avail themselves of the all-India presence of SBI. For instance, SBI’s core banking facility would allow the account holder to continue the same salary account at all SBI branches. For transferrable employees, it is a blessing in disguise.
Also, the salary account holders can enjoy the overdraft facility, where they can withdraw up to twice the net salary (monthly) even if the account balance is zero.
There are no processing fees, and they will have the luxury to repay in six months. Employees can avail of the overdraft facility through cheque book, ATM withdrawals, mobile banking, internet banking, etc.
However, this facility is limited to employees earning more than Rs. 25,000 in-hand monthly salaries. Also, their salary account must qualify for a minimum of six continuous salary credits.
National-Level Policies for Employers
Policies like National Pension Scheme (NPS) and Public Provident Fund (PPF) are available for salary account holders.
Savings Accounts for Family Members
Under SBI Rishtey, salaried individuals earning more than Rs. 25,000 per month (net salary) can open a maximum of four family members’ savings accounts for their siblings, spouse, children, or parents, with unique features.
For savings accounts under SBI Rishtey, there’s no minimum balance requirement. There’s a no-issuance charge for DD and debit cards. Also, account holders can enjoy the advantages of auto-sweep.
Types of SBI Salary Accounts
SBI has eight different categories of salary accounts. They are:
- Corporate Salary Package (CSP)
- Central Government Salary Package (CGSP)
- State Government Salary Package (SGSP)
- Railway Salary Package (RSP)
- Defence Salary Package (DSP)
- Central Armed Forces Salary Package (CAPSP)
- Police Salary Package (PSP)
- Indian Coast Guard Salary Package (ICGSP)
There are four package variants within each salary package, depending on the employee’s net monthly salary/ designation. The four tiers are:
- Silver tier
- Gold tier
- Diamond tier
- Platinum tier
These tiers determine the individual employee’s eligibility for the insurance coverage amount, SBI loyalty program (SBI Rewardz) benefits, and more.
Employees whose take-home income falls under the bracket of Rs. 10,000 to Rs. 25,000 fall in this category. They will get a Domestic Classic Debit Card with a daily withdrawal limit of Rs. 20,000. However, they do not qualify for an overdraft facility and SBI Rishtey scheme.
Employees with take-home income of more than Rs. 25,000 and less than Rs. 50,000 fall in this tier. They will get an International Gold Debit Card with a daily withdrawal limit of Rs. 50,000 or an equivalent amount of foreign currency.
Employees earning more than Rs. 50,000 but less than Rs. 1,00,000 fall in this tier (net monthly income). They will also get an International Gold Debit Card with a daily withdrawal limit of Rs. 50,000 or an equivalent amount of foreign currency.
Employees with a net income exceeding Rs. 1,00,000 fall in this category. They will get an International Platinum Debit Card with a daily withdrawal limit of Rs. 1,00,000 or an equivalent amount of foreign currency.
SBI Salary Packages
SBI Corporate Salary Package (CSP)
SBI’s CSP is for the employees of corporates. It includes hospitals, transport corporates, travel management companies, etc.
The employer or the organization can customize the salary package according to their requirements in consultation with the bank. The degree of customization depends on the business relationship between the employer and SBI.
SBI offers a Reimbursement Current Account (RCA) facility for employees having a salary account under CSP. In RCA, the employer will get the credit of reimbursements excluding monthly salary. An RCA is a zero-balance account free from maintenance charges. Linked to the employee’s salary account, they can withdraw money from RCA using the same debit card. However, they cannot deposit cash in this account.
SBI Central Government Salary Package (CGSP)
SBI’s Central Government Salary Package is for employees of various central government ministries and departments listed in the GOI directory.
It includes RBI (Reserve Bank of India) employees, NABARD, CGDA, defence civilians, autonomous bodies like KVS, academies, councils, etc.
SBI State Government Salary Package (SGSP)
SBI’s State Government Salary Package is for employees of the ministries and departments of the state governments and union territories. It includes employees of state corporations and boards, teaching staff and professors of aided schools, colleges, and universities.
SBI Railway Salary Package (RSP)
SBI’s Railway Salary Package (RSP) is for Indian Railways and metro corporations employees. It includes Delhi Metro, Kolkata Metro, Konkan Railway, Bangalore Metro, Lucknow Metro, etc.
Also, Dedicated Freight Corridor Corporation employees of India fall in this salary package category.
SBI Defence Salary Package (DSP)
SBI’s Defence Salary Package (DSP) is for the defence personnel and officers of the Indian Army, Indian Navy, and the Indian Air Force. Personnel and officers of Assam Rifles, Rashtriya Rifles, and Border Roads Organization also fall in this category.
In addition, retired defence personnel can open a DSP-Pension account or convert their salary accounts into pension accounts on attaining superannuation.
Also, in contrast to other categories, there are only three tiers in DSP– Gold, Diamond, and Platinum.
- JCOs and personnel below officer rank [Subedar Major (Army) and equivalent and below] falls in the Gold tier.
- Officers above the rank of a Lieutenant (army) and equivalent to Major (Army) and equivalent fall in the Diamond tier.
- Officers above the rank of a Lt. Colonel (Army) falls in the Platinum tier.
There are six sub-categories of SBI’s DSP:
- DSP-Air Force
- DSP-General Reserve Engineering Force/ Border Road Organization
- DSP-Assam Rifles
- DSP-Rashtriya Rifles
In addition to that, salaried individuals under this category will receive additional benefits like:
- Personal accident death insurance cover of Rs. 50 lakhs to all tiers
- Air accident death insurance cover of Rs. 1 crore to all tiers
- Personal accident permanent total disablement cover of Rs. 50 lakhs to all tiers
- Personal accident permanent partial disablement cover of Rs. 50 lakhs to all tiers
- Zero processing fee on loans and Xpress credit
- Rs. 10,00,000 for death in action– anti-terrorist/Naxal/foreign enemy operations
- Xpress credit loan covers up to Rs. 5,00,000 for death in action
Defence veterans/ pensioners can avail of the following benefits in addition to the benefits of SBI salary accounts:
- Personal accident death insurance cover of Rs. 30,00,000
- Zero processing fee for car and home loans
However, retired personnel cannot avail of air accident death insurance coverage, overdraft, and Xpress credit facility.
Central Armed Police Forces Salary Package (CAPSP)
SBI’s Central Armed Police Forces Salary Package (CAPSP) is for personnel and officers of Central Armed Police Forces (CAPFs), including 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), Railway Protection Force (RPF), and Railway Protection Special Force (RPSP).
Veterans/pensioners and salaried individuals under CPASP enjoy the same benefits as CSP pensioners/ personnel. Similar to CSP, CPASP comes in three tiers:
- Gold tier for personnel below the rank of an Assistant Commandant (Subedar Major/ Inspector and below)
- Diamond tier for Assistant Commandant and Deputy Commandant
- Platinum tier for Commandant and above
Police Salary Package (PSP)
SBI’s Police Salary Package (PSP) is for employees of the Central Police Organizations, excluding CAPFs and RPF, armed and reserve police forces of all states and UTs, government railway police, civil/ state police, and home guards.
PSP has four tiers:
- Silver tier for personnel below the rank of an Assistant Sub-Inspector of Police and equivalent
- Gold tier for personnel below the rank of an Assistant/ Deputy Superintendent of Police and equivalent
- Diamond tier for Assistant/ Deputy/ Additional Superintendent and Superintendent of Police
- Platinum tier for Special Superintendent of Police and above
Indian Coast Guard Salary Package (ICGSP)
SBI’s Indian Coast Guard Salary Package (ICGSP) is for serving personnel and pensioner veterans of the Indian Coast Guard. Its benefits are similar to that of DSP and CAPSP.
Similar to DSP and CAPSP, it also has three tiers:
- Gold tier for JCOs and non-officers
- Diamond tier for Deputy/Assistant Commandant
- Platinum tier for Commandant and above
SBI Salary Account Opening Process
An eligible employee can open an SBI salary account by visiting the nearest SBI branch. Also, they can apply online through the Salary Account page on the official website of SBI. They have to click the ‘request a call back’ button, and the sales team will assist them with the process.
Documents Required for SBI Salary Account Opening
The following documents are required for the SBI salary account opening:
- Two recent passport-size photographs
- Identity proof and address proof (any one of the following– passport, driving license, voter ID, Aaadhar card, etc.)
- PAN Card
- Employment proof
- Recent salary slip
Documents Required for SBI Salary Account Opening (Joint Account)
Both applicants shall submit the documents above for opening an SBI joint salary account.
To sum up, an SBI salary account is a refined version of a savings account. The salary account holders enjoy multiple benefits, depending on the category and tier.
The SBI Corporate Salary Package comes with a customizable provision where employers can customize the salary package according to the institutional financial framework, making it versatile, flexible, and attractive to the private and non-government sectors.
The bank also offers additional benefits for defence/ armed personnel, paramilitary/ central armed police forces personnel, and Indian Coast Guard personnel.
SBI salary account is a zero-balance account with multiple benefits like an auto-sweep facility, free debit cards, unlimited free ATM transactions, zero DD/ multicity cheque issuance fees, air/personal accidental death insurance, etc.
Also, the salary account holder can avail of SBI car loans, home loans, and personal loans at a lower interest rate with up to 50% off on the processing fee. The account holder (Gold tier and above) can also avail of an overdraft facility. They will also get up to 25% off on locker rent. Also, under the SBI Rishtey scheme where one can open special savings account for their family members.
With lucrative benefits and exclusive offers complimented by the PAN-India presence of the bank, the SBI salary account remains one of the most sought-after SBI products/ services to date.
Can one convert SBI savings account into a salary account?
Yes. One can convert an existing savings account in the SBI into a salary account. One needs to visit the respective branch for the same.
What happens to the salary account when the account holder changes their job?
After the account holder changes their job, the salary account will automatically become a regular savings account after three consecutive months of no salary credit. However, if the new employer has a tie-up with the SBI, they can continue with the same account after intimating the bank and the employer.
Can a salary account holder upgrade their tier/ package variant?
The employee can upgrade their tier after producing relevant documents at the nearest SBI branch on promotion or increase in net salary.
Can an employee open an SBI salary account without a PAN card?
No. A PAN card is mandatory to open an SBI salary account.
What is the minimum in-hand salary required to open an SBI salary account?
The minimum take-home monthly salary for an employee to open an SBI salary account is Rs. 10,000.