State Bank of India (SBI) is offering various types of savings accounts including a zero balance saving account where monthly average balance (MAB) rule is not applicable. Monthly Average Balance (MAB) is the sum of all end of the day (EOD) closing balance divided by the number of days in that month. Zero balance saving account doesn’t require customers to maintain any particular minimum average balance, according to SBI’s website- sbi.co.in. Despite this, the bank provides all the usual facilities that come with a regular savings account.
Here are 10 things to know about SBI’s zero balance saving accounts:
- The interest rate offered by SBI on zero balance saving account is the same as that on regular saving bank account. For savings deposits balance up to Rs. 1 crore, SBI offers an interest rate of 3.5 per cent per annum.
- On savings deposits balance over Rs. 1 crore, SBI offers an interest rate of 4 per cent per annum.
- SBI’s Basic Savings Bank Deposit (BSBD) account, which is a zero balance account, can be opened by any individual provided he/she has valid KYC (Know Your Customer) documents. It is primarily meant for economically weaker sections of society.
- One can open SBI’s BSBD account singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility, said SBI on its official website.
- Customers also get a number of facilities such as debit and ATM cards and internet banking with BSBD account.
- SBI also allows customers to open zero balance accounts under PMJDY (Pradhan Mantri Jan-Dhan Yojana) scheme. PMJDY is a national mission for financial inclusion to ensure access to financial services, namely, banking/ savings and deposit accounts, remittance, credit, insurance, pension in an affordable manner, according to SBI’s website.
- SBI’s special salary account packages, which can also be opened with zero balance, are available for varied sectors, such as central government, state government, defence forces, paramilitary forces, police forces, corporates/ institutions etc.
- Pehla Kadam and Pehli Udaan, are savings bank accounts specially for children that not only help minor learn the importance of saving money but also allow them to experiment with the ‘buying power’ of money. These SBI’s accounts come with zero balance facilities.
- SBI has not stipulated any minimum balance that has to be kept in the pension account maintained with the bank.
- However, in other accounts, SBI may require its savings bank account customers to maintain an average monthly balance in their accounts. Customers failing to meet the AMB requirements in a month in these accounts have to bear certain penalty charges.