- SBI Savings Plus account is linked to the multiple option deposit system
- Excess funds above a savings bank account threshold are automatically transferred to term deposits
- Anyone with valid KYC documents are eligible to open this special savings bank account
New Delhi: As interest rates on most banks’ savings accounts have fallen to historically low levels, the State Bank of India, the country’s largest lender, is offering its customers, those who maintain a balance higher on their savings account, the possibility of earning more interest than a normal savings account. Currently, SBI clients earn 2.70% interest on their savings account balance.
The SBI Savings Plus Account is a special savings account that can help savers earn higher interest on their savings account balance. The SBI Savings Account Plus is linked to the Multiple Option Deposit System (MODS), in which excess funds above a threshold of the savings bank account are automatically transferred to term deposits opened in multiples of Rs 1000. According to the details available on the official website of SBI – sbi.co.in – the period of this term deposit varies from 1 year to 5 years. One can also avail a loan against these fixed deposits.
The SBI Savings Plus account works as a flexi fixed deposit account in which the savings account balance above a threshold is transferred to the fixed deposit, which earns higher interest than the normal savings account. If the savings account balance falls below the threshold, the missing amount is transferred from the fixed deposit.
Here are the main features of the SBI Plus savings account
1]The deposit period is 1 to 5 years;
2]Mobile banking services;
4]Inter Net banking
6]Loan against MOD deposits available;
7]Minimum threshold for transfer to MOD – Rs 35000;
8]Minimum transfer amount at MOD Rs10,000 in multiples of Rs 1,000 / – to one instance;
9]25 free checks per year. Other checks will be issued with fees based on the average quarterly balance maintained by the customer;
10]Transfer between accounts can be done through online banking;
11]Maximum balance: no limit
12]A passbook is issued to record transactions. A duplicate of the book may be issued in the event of loss of the original, against payment of costs. Account statements can also be sent by email; and
13]Average monthly balance: NIL.
SBI Savings Plus Account: eligibility criteria
According to the SBI website, the following people are eligible to open an SBI Savings Plus account
1]All people with valid KYC documents are eligible to open this account
2]This account can be opened in the following modes: Alone, Jointly, Either or Survivor, Elder or Survivor, Anyone or Survivor.
For KYC requirements, the client must specify whether the “first in, first out” or “last in, first out” principle is to be applied for opening depots. In the absence of any mandate, the principle of “last in, first out” will be applied. This means that the last opened FD account will be broken first if the savings account balance falls below the threshold.