Worried about minimum balance requirements? State Bank of India (SBI) offers a special type of bank account which doesn’t allow the account holder to maintain any specific monthly average balance. SBI’s Basic Savings Bank Deposit Account comes without any minimum balance requirement and offers the same rate of interest as applicable to Savings Bank Account, according to its website – sbi.co.in. Currently, India’s largest bank SBI offers a rate of interest of 3.5 per cent per annum on deposits up to Rs 1 crore in savings bank accounts, according to the bank’s website. After a gap of six years, SBI had reintroduced the monthly average balance (MAB) charges on savings accounts from April 1, 2017.
While its Basic Savings Bank Account is free from the Monthly Average Balance or minimum balance requirement, the account can be opened singly, jointly “or with Either or Survivor, Former or Survivor, anyone or Survivor etc. facility”, according to the SBI website.
Here are 10 things to know about SBI’s Basic Savings Bank Account, which has no minimum balance requirements:
1. SBI’s Basic Savings Bank Account is among the few types of bank accounts excluded from the Monthly Average Balance or MAB requirement, according to the SBI website. These include Financial Inclusion Accounts, No frill Accounts, Salary Package Accounts and Small Accounts, it noted.
2. SBI’s Basic Savings Bank Account – which is free from the minimum balance requirement – is a KYC- or Know Your Customer-compliant account. KYC guidelines require the banks to verify the identity of their clients.
3. The Basic Savings Bank Account is available at all of SBI’s branches, it adds.
4. Besides no minimum balance requirement, the Basic Savings Bank Account comes with no upper limit restrictions.
5. SBI’s Basic Savings Bank Account comes with a Basic RuPay ATM-cum-debit card, issued free of cost. The account holder can use this card at ATMs or use the withdrawal forms at branches to withdraw cash from a Basic Savings Bank Account, according to SBI.
6. Withdrawal limit: SBI allows a maximum of four withdrawals from a Basic Savings Bank Account in a month. These include withdrawals from the ATMs of SBI and other banks as well as transactions. This limit also applies to RTGS, NEFT, clearing, branch cash withdrawals, transfers and internet debits, among others, according to SBI.
7. No further customer debits would be allowed during the month, SBI adds.
8. The Basic RuPay ATM-cum-Debit card attracts no annual maintenance charge (AMC).
9. Other free facilities: With the Basic Savings Bank Account, SBI offers a few other features free of cost. These include receipt/credit of money through electronic payment channels such as NEFT/RTGS and deposit/collection of cheques drawn by central/state government. Besides, the Basic Savings Bank Account attracts no charges on activation of inoperative accounts as well as for closure of account.
10. The Basic Savings Bank Deposit Account requires the customer to not hold any other Savings Bank Account . “The Customer cannot have any other Savings Bank Account, if he/she has a Basic Savings Bank Deposit Account. If the customer already has a Savings Bank Account, the same will have to be closed within 30 days of opening a Basic Savings Bank Deposit Account,” SBI mentions on its website.