State Bank of India provides different types of savings account serving a different purpose and need. Bank customer should be careful when he is opening an account with the bank.
These accounts differ when it comes to maintaining minimum balance and services available. The bank is offering interest rate at 4% p.a. Interest is calculated on a daily balance.
SBI Insta savings account
The SBI Insta savings account is an instant savings account, which brings the complete digital banking ecosystem to your mobile. You can now open a savings account in minutes with the SBI Yono mobile app or from the Yono online portal in minutes.
- Insta savings account can be opened easily with OTP-based e-KYC using your Aadhaar card details which are linked to the mobile number and PAN card details.
- The overall balance at the end of the day can go up to Rs. 1,00,000 and the total annual credit transactions can go up to Rs. 2,00,000.
- You will need to maintain a minimum balance as defined for a normal savings bank account (Metro & Urban - Rs. 3000; Semi-Urban - Rs. 2000; Rural - Rs. 1000). However, the minimum balance fees for the Insta savings account have been eliminated until March 31, 2019.
- In addition, you must not have an OTP account with another bank or financial institution.
- You can only have one Insta savings account and no other accounts at any given time.
Savings Plus Account With SBI
Savings Plus Account is a Savings Bank Account linked where any amount over Rs 25,000 would be transferred to a fixed deposit. The minimum balance of Rs 25,000 should be maintained. This means that where you get an interest rate of 4% in the SB account you might end-up getting 6%, which is the current FD interest rate. So, go for this account if you have a surplus in your savings account every month. Account holders also have the flexibility to choose the tenure of the deposit.
SBI digital savings account
The SBI digital savings account is an online savings account that can be opened using the Yono mobile application through the SBI or Yono online portal. The SBI digital savings account comes with a paperless account opening process. But, you will have to visit the bank once to complete the account opening process.
The Aadhaar card and the PAN card are required to open this account
- The State Bank of India digital savings account can be used individually only. You must visit the branch to convert it to a joint account
- You will need to maintain a minimum balance as defined for a normal savings bank account (Metro & Urban - Rs. 3000; Semi-Urban - Rs. 2000; Rural - Rs. 1000).
- You can convert digital savings account into a zero balance salary account by asking the bank to fix the salary package
- To open Digital savings account with the State Bank of India you need to check the eligibility criteria are as follows:
You must be a resident Indian over 18 years
You must have a valid Aadhaar number (linked to a mobile number registered in his name) and a valid permanent account number
You will need to have a valid mobile phone number registered with your name and a valid and active email address.
Basic Savings Bank Account
This account can be opened by any individual above 18 years old, 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. You can maintain zero balance in this basic SBI savings account. However, a maximum four withdrawals in a month, including ATM withdrawals at own and other Bank's ATMs is permitted. Thereafter service charges as per regular Savings Bank Account will apply. You can either have a basic savings account or a savings account, you cannot have both.
Yuva Savings Bank Account
This savings bank account is for young adults between 10-30 years of age to give them the first experience of an independent, restriction free Banking experience. Facilities available such as ATM- cum-Debit card facility, Mobile Banking, Internet Banking, Cheque books. So, it is only for those who fall in this particular age group.
Savings Account For Minors
Pehla Kadam and Pehli Udaan both the Savings Accounts have features like Internet Banking, Mobile Banking, etc. which will not just acquaint children with the different channels of modern-day banking but also teach them the nuances of personal finance.
Premium Savings Account
Premium Savings Account provides an enriched version of Savings Bank account consisting of the concessions and add-ons. There should be a minimum amount of Rs 10000/. to be maintained. The auto sweep will be applicable after retaining Rs 25000/- in the account.
SBI Salary Accounts
SBI salary account is where your salary gets credited on regular bases. This is a zero balance account. Note that of salary is not credited for three consecutive months than the account is considered as a regular savings account and required minimum balance should be maintained.
Taxation on SBI Savings Account
Now that we have understood the different type of savings account in SBI, it is time to take a look at how the different State Bank of India accounts are taxed. If you have a SBI Savings account, any interest earned over and above Rs 10,000 would be taxed when you are filing your tax returns. On the other hand, if you a SBI Bank FD, the TDS would also be applicable if the amount crosses Rs 10,000. So, depending on the type of account in SBI the tax liability would arise. So do understand the same before you invest or open an account.
No Frills Account
The low cost saving bank account, which is also called "no frills acccount" is good for low-income groups. This segment may have limited knowledge, so frills like internet banking, mobile banking, checkbook are absent. Also, basic rupee debit card with minimum maintenance charges is issued. There is no age limit to open this account provided KYC requirements remain fitted. An SBI Basic Savings Account can be opened free of cost at any SBI branch. The upper limit set is not allowed for the balance amount held in the account. It can be easily accessed, and cheque book will also be issued along with it. Transfer of accounts can do between SBI branches with free of cost. Four withdrawals are allowed every month from SBI or other bank ATM's. Utility bill payments can be done using this SBI Savings account. Internet Banking NEFT/RTGS transactions can be done free of cost. A debit card is provided free of cost with no annual maintenance charge.