SBI Account Holder Alert
SBI has encouraged its customers rather than opening a savings accounts, they should opt for zero balance account aka bank saving bank deposit (BSBD) account.
There are many forms of investment tools at various banks. Many bankers offer attractive benefits that allow a customer to save their money with the bank, and remove only during times of need. Two such bank accounts are current and saving ones. Although both operate on similar lines, they have a few differentiating features, which separate the latter from the former. Coming to largest lender, State Bank of India (SBI), it has a host of charges and penalties for maintaining these two accounts. This can be stressing for the SBI account holder at a certain level, especially if you do not maintain a minimum balance, – your bank will slap a list of penalties on you!
Such accounts also make removing cash difficult in times of need. Interestingly, there is one such account that is the best when it comes to lending a helping hand for you, because it is free from any charges and penalties. Surprise! This account also does not require any minimum balance to be maintained. In fact, SBI has encouraged its customers rather than opening a savings accounts, they should opt for zero balance account aka bank saving bank deposit (BSBD) account.
Let’s understand the difference between savings and current account. Also let’s look into their charges.
SBI savings account!
This account is designed for primary purpose of your need. One key feature of savings account is that, it allows customers to deposit money as per their convenience and even helps them in earning interest on their savings.
One can open a savings account either individually or jointly, however, requires a customer to maintain a pre-specified amount in their account. This means, there is a limit on your withdrawal, and a customer should not cross that minimal balance levied by a bank or else they will face a penalty.
In this account, a customer earns interest ranging between 4% to 6%.
SBI savings bank charges!
For citizens in metros and urban regions, the minimum balance to maintain is up to Rs 3000. If a customer, fails to maintain more than or equal to 50% balance, then penalty charges will be Rs 10 plus GST. Furthermore, if the minimum balance is in between 50% to 75% then the penalty will be Rs 12 + GST. Subsequently, if balance not maintained by more than 75% the account will be charged with Rs 15 plus GST on a monthly basis.
Whereas in semi-Urban areas, minimum balance should be Rs 2000. However, if the account has a shortfall of more than or equal to 50% minimum balance then the penalty charged will be Rs 7.50 plus GST. Going ahead if shortfall is in-between 50% to 75% then the penalty will be Rs 10 + GST. Similarly, if shortfall is more than 75% the account will be charged with Rs 12 plus GST.
However, there is a relief to customers in rural region, as the minimum balance should be just Rs 1000. For customers in this area, if the account holder’s accounts has a shortfall of more than or equal to 50% minimum balance then the penalty charged will be Rs 5 plus GST. Likely, if shortfall is in between 50% to 75% then the penalty will be Rs 7.50 + GST. Hence, if shortfall is more then 75% the account will be charged with Rs 10 + GST on monthly basis.
SBI Current Account!
Unlike savings accounts, current accounts are suitable for those who are required to make regular cash transactions. This account comes quite handy for users like companies, public enterprises, businessmen, etc. There is also no interest earned for opening a current account.
The only good thing about current account is that, they do not carry any limitation on transactions. Hence, numerous amounts of transactions can be made. But there is a certain limit to maintain the account, which is always prescribed by your bank before opening a account.
SBI Current Account Charges!
Minimum account balance for a Current account in all Segments is Rs 10,000. If this account is not maintained, then penalty would be Rs 500 plus GST.
For current account variants products like Power Pack, Power gain, Power POS, Power Jyoti and Surabhi the minimum balance is finalised at Rs 5,00,000, Rs 2,00,000 , Rs 5,000 , Rs 50,000 and Rs 10,000 respectively.If the customers of above-mentioned variants of current account fail to maintain the minimum balance then they face penalty of Rs 2500, Rs 1500, Rs 500, Rs 1000 and Rs 500 plus GST, respectively.
Why you should close your SBI current and savings accounts:
SBI from April 2018, has been encouraging customers to shift towards Bank Saving Bank Deposit (BSBD) account.
Shifting to BSBD account is even more convenient and flexible, because there is no charges levied by SBI on them.
P K Gupta, MD – Retail & Digital Banking, SBI earlier said, “Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied.”
A BSBD account can be opened by any individual provided he/she has valid KYC documents. Primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees.
The eligibility of BSBD account is similar to that of regular savings bank account, also it is based on KYC. It can be operated singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility.
Furthermore, there is nil minimum balance amount in BSBD account, also there is no upper limit set for maintaining maximum balance. The rate of interest is same as savings bank account.
One can withdraw forms at branches or through ATMs, and on opening the account a customer will receive basic RuPayATM-cum-debit card.
Here’s how services charges work in BSBD account.
- Basic RuPay ATM-cum-Debit card will be issued free of cost and no annual maintenance charge will be applied.
- Receipt/ credit of money through electronic payment channels like NEFT/RTGS will be free
- Deposit/ collection of cheques drawn by Central/State Government will be free
- No charge on activation of inoperative accounts
- No account closure charges.
It needs to be noted that, 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.
Also maximum 4 withdrawals in a month, including ATM withdrawals at own and other Bank’s ATMs and transactions through other mode including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc. No further customer debits would be allowed during the month.
(Except for the headline, this story has not been edited by Daily Report and is published from Zee Business.)
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