A Detailed Guide to the SBI Savings Account
SBI Savings Account
State Bank of India (SBI) is India's oldest, largest, and most trusted public sector scheduled commercial bank. The bank has a legacy of more than 200 years. Besides banking services, this Fortune 500 company also provides financial services. The headquarters of SBI is located in Mumbai.
State Bank of India has a market share of 1/4th of the entire banking system in India. The bank has an impressive network of more than 22,000 branches and 62,617 Automated Teller Machines (ATMs) and Automatic Deposit & Withdrawal Machines (ADWMs). Besides these, SBI also serves its customers through its 71,968 Business Correspondent (BC) outlets. The bank's core values are innovation, service, ethics, transparency, customer centricity, sustainability, and politeness.
Besides banking services, the State Bank of India has diversified its businesses through multiple subsidiaries, such as SBI Card, SBI Mutual Fund, SBI Life Insurance, SBI General Insurance, etc. SBI's diversified channels serve their customers through 229 branch offices in as many as 31 foreign locations (countries), including Australia, Bahrain, Bangladesh, Belgium, China, Hong Kong, Japan, Singapore, South Africa, the United Kingdom, the United States of America, etc.
State Bank of India offers various types of savings accounts for its customers. An SBI savings account provides unparalleled benefits and security.
This article discusses the SBI savings account interest rates, minimum balance, documents required, benefits, and features!
Different Types of State Bank of India (SBI) Savings Accounts
State Bank of India offers 7 different savings accounts. These include:
- Video KYC Savings Account
- Basic Savings Bank Deposit Account
- Basic Savings Bank Deposit Small Account
- Savings Bank Account
- Savings Account for Minors
- Savings Plus Account
- Motor Accidents Claim Account (MACT)
Let us learn about each type of account in detail, helping you choose the best SBI savings account for your requirements!
1. Video KYC Savings Account
Video KYC SBI Savings Account is perfect for those who are always on the go and wish to open an account from anywhere.
Features offered by an SBI Video KYC Savings Account:
- No branch visits are required since the entire account opening process is paperless and video-based.
- You can transfer funds through UPI, IMPS, NEFT, or the YONO app.
- You can apply for a RuPay Classic Debit Card.
- The Yono app, mobile banking, and internet banking give you 24x7 access to your account.
- Register for SBI Quick Missed Call facility and SMS alerts to receive instant account updates.
- A nomination facility is available.
- No chequebook is issued. Additionally, branch-based debit or voucher-based transactions are not permitted. However, the account holder can activate these transactions by visiting their home branch and updating their signature.
- A passbook is available on request.
Eligibility criteria for an SBI Video KYC Savings Account:
- Any Indian resident who is literate and has attained 18 years of age is eligible to open the account.
- Any resident Indian with no CIF (Customer Information File) with SBI.
- The only allowed mode of operation is 'Single.'
The documents required for an SBI Video KYC Savings Account:
- The customer's original PAN card and Aadhar card number must be present at the time of account opening.
- The customer's Aadhar-registered mobile number must be operational. This is for OTP (One-Time Password) verification.
- The customer must complete the account opening process within the geographical limits of India.
How to Open an SBI Video KYC Savings Account?
- Download the YONO app and click on 'New to SBI'.
- Click on 'Open Savings Account'.
- Click on 'Without Branch visit'.
- Click on 'Insta Plus Savings Account'.
- Enter your Aadhar and PAN details.
- Check your mobile to find the OTP and enter it in the box provided.
- Schedule the video call.
- Open the YONO app and click on 'Resume' to finish the KYC (video-based) process.
- Receive account details on your mobile number. Your account will be ready for debit transactions after the bank officials verify the account.
2. Basic Savings Bank Deposit Account
The SBI Basic Savings Bank Deposit Account is no-frills savings account for investors. This account is also known as the PM Jan Dhan Yojana account.
Features offered by an SBI Basic Savings Bank Deposit Account:
- Available at 22,000 SBI branches across India.
- The minimum balance requirement of the SBI Basic Savings Bank Deposit Account is 'Zero'.
- There is no upper limit to the maximum balance.
- Cheque book facility is not available.
- Withdrawals are possible by visiting branches or ATMs.
- Customers can apply for a basic RuPay Debit Card. The Debit Card is free and has no AMC (Annual Maintenance Charges).
- A maximum of four (4) free cash withdrawals are allowed across all channels.
Eligibility criteria for an SBI Basic Savings Bank Deposit Account:
- Any resident Indian with KYC documents, such as a PAN card, Aadhar card, etc., can open the SBI Basic Savings Bank Deposit Account.
- The mode of operation can be single, joint, former or survivor, or either or survivor.
3. Basic Savings Bank Deposit Small Account
This account is primarily intended for people who are not a part of the formal banking system. So, any resident Indian above 18 years of age without valid KYC documents can open the SBI Basic Savings Bank Deposit Small Account. All they need to do is to submit a self-attested photo and affix their thumb impression or signature before an SBI Bank Officer.
Features offered by a Basic Savings Bank Deposit Small Account
- The account holder can easily convert this account to a regular savings account by submitting KYC documents.
- Available at all 22,000 SBI branches except CAG, MCG, SPB, and PBB branches.
- Customers can withdraw money through branches or ATMs.
- Customers can apply for a basic RuPay Debit Card.
- The minimum balance requirement in SBI Basic Savings Bank Deposit Small Account is 'Nil.'
- The account can have a maximum balance of INR 50,000.
4. Savings Bank Account
The Savings Bank Account is SBI's most popular account. This feature-rich account provides many benefits and features.
Features offered by a Savings Bank Account
- Access to mobile banking, internet banking, SMS alerts, YONO, and State Bank Anywhere.
- Customers can opt for SBI Quick Missed call facility.
- Customers can get ten (10) free cheque leaves every financial year, after which a chequebook will cost INR 40+GST.
- The requirement of minimum balance inSBI Savings Bank account is 'Nil.' However, there is no limit on the maximum balance.
Eligibility criteria for a Savings Bank Account
- Any individual, Central government department, or State government department can open this savings account.
- Self-help groups can also open this account.
- The mode of operation is single, joint, former or survivor, or either or survivor.
5. Savings Account for Minors
Nicknamed Pehla Kadam (First Step) and Pehli Udaan (First Flight), this account is perfect for teaching your children the importance of saving money.
Features offered by a Savings Account for Minors
- Current Debit Card withdrawal limit of INR 5,000 to restrain kids from overspending.
- No average monthly balance requirement applies to this account.
- The maximum balance in this account can be INR 10 lakh.
- Auto-sweep facility is available. The minimum threshold is INR 20,000.
Eligibility criteria for a Savings Account for Minors
- Minors of any age can open the Pehla Kadam savings account with their parents or guardians.
- Minors can open Pehli Udaan savings account above 10 years of age. However, since this account can be operated only by a minor, the minor must know how to sign uniformly.
- The mode of operation is joint for Pehla Kadam and single for Pehli Udaan.
6. Savings Plus Account
SBI's Savings Plus Account is a MOD-linked account that automatically transfers the surplus fund (funds above the threshold limit of INR 35,000) to Term Deposits. This account is MOD-linked, which stands for Multi Option Deposit. Hence, investors earn higher returns without filling out forms for opening-term deposits.
Features offered by a Savings Plus Account
- The deposit period is between one and five years.
- Customers can apply for ATM cards, Mobile banking, State Bank Anywhere, Internet Banking, and SMS alerts.
- Account holders can avail of loans against MOD.
- 25 cheque leaves for free every year.
- No limit on the maximum balance.
- The monthly average balance requirement of this account is 'Nil.'
Eligibility criteria for a Savings Plus Account
- The applicant must have valid KYC documents, such as a PAN card, Aadhar card, etc.
- The mode of operation is single, joint, former or survivor, or either or survivor.
7. MACT SB Claims Account
This is a special SBI savings account that receives MACAD (Motor Accident Claim Annuity Deposit) interest or compensation amount awarded to a motor accident claimant or victim by a Court or Tribunal. The full form of MACT is Motor Accident Claim Tribunal.
Features offered by a MACT SB Claims Account
- A welcome kit containing ATM/Debit Card.
- Customers can apply for a chequebook.
- Customers can use the internet banking facility for free.
Eligibility criteria for a MACT SB Claims Account
- Any resident Indian eligible to receive MACAD (Motor Accident Claim Annuity Deposit) interest or compensation amount under the directions of a Court of Law or Tribunal can open this account.
- The applicant must possess valid KYC documents, such as a PAN card, Aadhar card, etc.
SBI Savings Account: Interest Rates
SBI savings account interest rates are categorised into two slabs. The details regarding the same have been given in the table below.
|Savings Account Balance||Rate of Interest (w.e.f. 15.10.2022)|
|Balances less than Rs. 10 Crore||2.70% p.a.|
|Balances Rs. 10 Crore & Above||3.00% p.a.|
How to Open an SBI Savings Account?
Customers can open an SBI savings account in one of two ways- in-person or via their website (online). The steps to be followed for both methods are listed below:
- Visit State Bank of India's official 'Branch Locator' page
- Choose the suitable option from the drop-down menu for the following- 'Option,' 'Condition,' 'Search Text,' and 'Product/Service Name.'
- Following this, you can visit your nearest State Bank of India (SBI) branch along with your original KYC documents.
- Fill out the 2-part form. The first part contains the name, address, sign, asset details, etc. Customers must fill out the second part with a PAN card.
- After filling out the form correctly, hand it over to the bank official, along with the initial deposit amount of INR 1,000.
- The bank will verify the account opening application form and send a welcome letter, chequebook, and free passbook to the registered postal address.
- Visit the State Bank of India's official website.
- On the right side of the page, you will find the 'Interest Rates' tab. Here, click on the drop-down menu and select 'SB Account.'
- Click on the 'Apply Now' tab.
- Fill out the application form accurately by entering your name, date of birth, address, and other details.
- Hit the 'Submit' button.
- After verifying the online application, bank officials will call.
- You can visit your nearest branch for KYC verification. It is wise to carry identity and address proof when visiting the branch.
- The bank will process the account opening application.
- The bank will activate the account on successful approval within five (5) business days.
Charges Associated With an SBI Savings Account
Although the State Bank of India provides several benefits for savings accounts, they have a few nominal charges for providing specific services. The following is the comprehensive list of SBI savings account charges:
|Issuing Multi-City Cheque Book (for Savings Bank)||10 free cheque leaves every financial year. Thereafter: INR 40+GST for a 10-leaf chequebook and INR 75+GST for a 25-leaf chequebook|
|Issuing Multi-City Cheque Book (for Senior Citizens)||Free|
|Emergency Cheque Book||INR50+GST for a 10-leaf chequebook|
|Issue of First Passbook or Continuation||Free|
|Duplicate Passbook Issue||INR 100 + GST and INR 50 + GST for 40 entries or per page|
|Account Transfer for Savings Bank Account||Free|
|Account Closure before 14 days from the account opening date||Free|
|Account Closure between 14 days and 1 year from the account opening date||INR 500 + GST|
|Account Closure after 1 year from the account opening date||Free|
|Stop Payment Instruction||Between INR 100 and 500 plus GST per instrument and per instance|
|Classic /Silver/Global/Contactless Debit Card Issuance Charge||Free|
|Gold Debit Card Issuance Charge||INR 100 + GST|
|Platinum Debit Card Issuance Charge||INR 300 + GST|
|Debit Card Issuance Charge for Salary Package accounts||Free|
|Classic/ Silver/ Global/ Contactless Debit Card Annual Maintenance Charge||INR 125 + GST|
|Yuva /Gold / Combo Debit Card Annual Maintenance Charge||INR 175 + GST|
|Platinum Debit Card Annual Maintenance Charge||INR 250 + GST|
|Debit Card Annual Maintenance Charge for Salary Package accounts||Free|
|Doorstep Banking for non-financial transactions||INR 60 + GST|
|Doorstep Banking for financial transactions||INR 100 + GST|
|Interest Certificate||Original - Free
Duplicate - INR 150 + GST
The State Bank of India, one of the oldest, most established and reputable names in the banking sector, offers some of the most unique options under its Savings Accounts. You can pick the account type that meets your requirements the best. In addition to being a secure facility, these savings accounts also offer interest rates of 2.7% p.a. and 3.00% p.a. The account can be opened in an offline as well as online mode. An SBI savings account can be your first step to investment.
However, if you want to earn higher returns from your hard-earned money, consider investing in debt mutual funds or the stock market. Debt mutual funds provide better returns than savings accounts and are a lot less volatile than equity stocks.
What are the various types of SBI savings accounts?
State Bank of India (SBI), India's largest, oldest, and most popular public sector scheduled commercial bank, offers 7 different types of savings accounts for Indian citizens. They are - Video KYC Savings Account, Basic Savings Bank Deposit Account, Basic Savings Bank Deposit Small Account, Savings Bank Account, Savings Account for Minors, Savings Plus Account, and Motor Accidents Claim Account (MACT).
What is SBI Video KYC Savings Account?
SBI Video KYC Savings Account is a special savings account that does not require any branch visit. Customers can open the account from the convenience of their homes. The entire account opening process is paperless and video-based. Also, no chequebook is issued, and branch-based debit or voucher-based transactions are not permitted. However, the account holder can activate these transactions by visiting their home branch and updating their signature.
What is SBI Savings Plus Account?
SBI's Savings Plus Account is a MOD (Multi Option Deposit) linked account that automatically invests surplus funds (funds above the threshold limit of INR 35,000) in Term Deposit plans. So, investors can earn higher returns without formally investing in term deposits. Savings Plus account holders can get 25 cheque leaves for free every financial year and avail of loans against MOD.
What is the interest rate of an SBI savings account?
The interest rate of the SBI savings account depends on the account balance. So, if your account has a balance under INR 10 crore, you will get a 2.7% interest rate per annum. However, if your account balance is above INR 10 crore, you will get an interest rate of 3% per annum.