State Bank of India (SBI) offers savings bank account options for customers. A savings account is a basic account that keeps customers’ money safe and helps them grow their savings moderately. SBI’s savings bank accounts offer a range of facilities for customers. SBI also offer the option of ‘Savings Plus Account’ which is a savings bank account linked to multi option deposit (MOD) account , wherein surplus fund above a threshold limit from the savings bank account is transferred automatically to term deposits opened in multiples of Rs 1,000.
Comparison of SBI’s savings account and savings plus account:
SBI savings account:
Savings accounts at SBI can be opened by an eligible individual in single name or jointly with others and by certain organisations/agencies approved by RBI, as mentioned on SBI’s portal.
The customer identification will be on the basis of documents provided by the customer as (a) Proof of identity and (b) Proof of address.
The applicant(s) will need to come to the SBI branch, in person, for opening the account and will sign at the relevant places in the presence of an SBI official.
SBI is required to obtain Permanent Account Number (PAN) of the customer or declaration in Form No. 60 or 61 as per the I.T. Act (vide Section 39A) from the person opening the account.
A passbook is issued in all saving bank accounts. Passbooks are immediately updated across the counter on request. Cheque books are issued on request. Twenty five cheque leaves are issued free in a year.
A free ATM cum debit card, SMS alerts, e-statement and nomination facilities are available for all SBI saving accounts.
Interest on SBI savings accounts is between the 10th and the last day of the month. Interest is credited on June 30 and December 31 every year.
SBI savings plus account:
Any individual eligible to open SBI’s savings bank account can also open SBI’s savings plus account. A monthly average balance (MAB) requirement is applicable for maintaining SBI’s Savings Plus account. For metro and urban bank branches, the MAB requirement is Rs 3,000 while for semi-urban bank branches it is Rs 2,000. The MAB requirement for rural bank branches is Rs 1,000, as mentioned on SBI’s portal.
The rate of interest for SBI’s savings plus account is same as applicable to SBI’s savings bank account. The interest on bank account is between the 10th and the last day of the month. Interest is credited on June 30 and December 31 every year. Any surplus funds retaining a minimum of Rs 25,000 in savings bank (to be set up by the customer) will be transferred as term deposit with a minimum of Rs 10,000 and in multiple of Rs 1,000 at one instance. The minimum threshold limit for transfer of multi-option deposit (MOD) account is Rs 35,000.
All facilities offered to savings bank account holders such as ATM card, mobile banking, Internet banking, SMS alerts are also available in SBI savings plus account. Loan against multi-option deposits are also available. The mode of operation can be single, joint or with either or survivor, former or survivor, anyone or survivor, etc.