There is a steady decline in the interest rates on the savings bank account of most of the banks. State Bank of India, the country’s biggest lender, is offering its customers an opportunity to earn higher interest than a normal savings account. At present, SBI customers get 2.70% interest on their savings account balance.
SBI New Savings Plus Account
State Bank of India (SBI) is now giving an opportunity to its customers, who maintain a high balance in the account, to earn more interest. For such SBI customers, the bank has brought a new savings account, named SBI Savings Plus Account, which is linked to the Multi Option Deposit Scheme (MODS). This saving account offers an interest rate higher than the usual 2.7 percent annual return offered by the bank on general saving accounts.
What’s special in SBI Savings Plus
In this, the surplus money of the savings account is automatically transferred to the Term Deposits opened in multiples of Rs 1000. According to the information given on SBI’s official website sbi.co.in in this regard, this term deposit ranges from 1 year to 5 years. One can also avail loan against these fixed deposits.
SBI Savings Plus Account works like a flexi fixed deposit, that is, when the money in the account exceeds a certain limit, it gets transferred to the fixed deposit. When it starts going below the minimum account balance, then the money from FD is transferred in the account, so that the minimum account balance can be maintained in the savings account.
Features of SBI Savings Plus Account
According to the information available on SBI’s website, customers get these features in SBI Savings Plus Account.
1. The term period for deposits under MOD ranges between 1 and 5 years.
2. ATM Card
3. Mobile Banking
4. Internet Banking
5. SMS Alerts
6. Loan facility against MOD deposit
7. Minimum threshold limit for transfer to MOD is Rs 35,000
8. The minimum amount of transfer to MOD is Rs 10,000, in multiples of Rs 1,000.
9. 25 cheque leaves are available free in a year. After that, subsequent cheques will be provided with a charge.
10. Internet Banking Money Transactions
11. There is no limit to the maximum balance of this type of account.
12. A passbook is available to record the transaction. If the original passbook is lost, then there is also the facility of duplicate passbook. Facility to send a statement by e-mail.
13. There isn’t any monthly average balance account.
Eligibility criteria for SBI Saving Plus Account
According to SBI website, the following people are eligible to open SBI Savings Plus Account
– All individuals with valid KYC documents are eligible for opening this saving bank account at any of the branches.
– Interested customers can open this Saving Plus Account individually, jointly or with either or survivor, former or survivor, anyone or survivor.
– The customer also has to mandate whether the “First in First Out” or “Last in First out” principle should be applied for break opening of deposits. In absence of any mandate the “last in First out” principle will be applied. This means the last FD account opened will be broken first in case savings account balance falls below the threshold.