While most banks' interest rates on savings bank accounts have fallen to record lows, State Bank of India, the country's largest lender, offers customers who maintain a higher balance in their savings account the opportunity to earn a higher rate of interest than a standard savings account. Customers of SBI are currently earning 2.70 percent on their savings account balances.
Savings Plus Account is a special savings account offered by SBI that enables savers to earn a higher rate of interest on their savings account balance. The SBI Savings Plus Account is linked to the Multi Option Deposit Scheme (MODS), under which surplus funds from the savings bank account are automatically transferred to term deposits in multiples of Rs 1000. According to information available on SBI's official website — sbi.co.in — the term of this term deposit is between one and five years. Additionally, one can obtain a loan against these fixed deposits.
SBI Savings Plus Account operates similarly to a flexi fixed deposit account in that excess balance in the savings account is transferred to the fixed deposit, which earns a higher rate of interest than the standard savings account. If the balance in the savings account falls below the threshold, the balance in the fixed deposit is used to cover the shortfall.
Primary features of the SBI Savings Plus Account.
1] The deposit period is between one and five years;
2] Banking via mobile device;
3] Debit card;
4] Interbank electronic commerce
5] SMS notifications;
6] Loans secured by MOD deposits are available;
7] The minimum amount that can be transferred to the MOD is Rs 35000;
8] The minimum amount that can be transferred to the MOD is Rs10,000 in multiples of Rs 1,000/- in a single transaction;
9] Each year, you are entitled to 25 complimentary cheque leaves. Additional cheques will be issued with charges based on the customer's quarterly average balance;
10] Internet banking can be used to transfer funds between accounts;
11] There is no limit to the maximum balance.
12] To keep track of transactions, a Pass Book is issued. On payment of fees, a duplicate pass book can be issued if the original is lost. Account statements can also be sent via email; and
13] Average Monthly Balance: NIL.
Eligibility criteria for the SBI Savings Plus Account:
The following people, according to the SBI website, are eligible to open an SBI Savings Plus Account.
1] Anyone with a proper set of KYC documents is eligible to open this account.
2] This account can be created in the following ways: individually, jointly, either or survivor, former survivor, or anyone survivor.
For KYC purposes, the customer must choose whether the “First in First Out” or “Last in First Out” concept should be used for deposit break opening. In the absence of a mandate, the concept of "last in, first out" will be followed. If the savings account balance falls below the threshold, the last FD account formed will be broken first.
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