For those of you who find it difficult to maintain a minimum stipulated sum in the savings bank, you have the option to switch to a Basic Savings and deposits account. SBI is enabling this conversion at no cost and has also reduced the MAB or monthly average balance requirements seeing the additional burden some of the customer segments confront.
Though the positive with the BSBDA is that it does not require account holder to maintain some minimum balance and is a zero balance savings account, it comes with few of the terms and conditions which should be known clearly.
Limitations of BSBDA S/B A/c
Similar to regular savings account; interest rate, withdrawal and deposit terms are same with no restrictions. ATM cum debit card and passbook, cheque facility shall be extended.
Withdrawals from the BSBDA account are restricted to 4 in a month
Restrictions : Although there is no limit on the number of deposits that can be made in a month, the maximum withdrawals per month is limited to just four. For this withdrawal from all means that includes withdrawal at bank branch, ATM, online fund transfer, EMIs is all taken into account. Banks on their discretion charge a fee or allow for free the transactions exceeding this limit.
Who should opt for BSBDA savings account?
BSBDA account should largely be maintained by students, retirees, professionals who have just begun their career as they may need to carry out only few transactions and at the same time might find it difficult to maintain the stipulated minimum balance amount.
Also as against maintaining several savings account, you can maintain one regular savings account and the others can be BSBDA account with no penalty charges.