The State Bank of India or SBI's small accounts is mainly for the economically weaker section (EWS) of society in order to motivate them to start saving money for their future without any burden of fees or charges. According to SBI website, the small accounts can be opened by anyone who has completed 18 years of age and even if does not have officially valid KYC (Know Your Customer) documents.
For more details you can visit the official website i.e. sbi.co.in or even reach your nearest SBI branch. However, there are some restrictions in operation of small accounts because of the relaxed KYC, told the lender. The best thing is that these accounts can later be converted into regular savings account after submission of the KYC documents.
Important things to know about the SBI's small savings account
What are the Minimum or Maximum Contributions?
In a SBI small account, there is no limit on minimum balance amount. The maximum balance amount that can be maintained in the small savings account is Rs. 50,000. And if the balance goes above Rs. 50,000 or the total credit in the account is more than Rs. 1,00,000 in a year then no further transaction is allowed until the full KYC process is completed, according to SBI website.
What are the Interest Rates?
The Interest rates of SBI's small account are also similar to that of other regular savings bank accounts. The SBI offers an interest rate of 3.50 % per annum.
What are the Benefits?
The customers of SBI get a basic RuPay ATM-cum-debit card, which is free of cost on opening of these accounts. The debit card is widely accessible. Account holder can also make use of internet banking facility.
What are the Withdrawal & Transfer limits?
The withdrawals as well as transfers in a month must not exceed Rs. 10,000 for those who hold a small account in SBI. In addition, the total of all credits in a financial year is limited to Rs. 1 lakh, as per the SBI. SBI account holders can make a maximum of 4 withdrawals in a month that includes ATM withdrawals at own bank & other bank's ATMs.
What are the Service charges?
The SBI's small account holder does not have to pay any annual maintenance charges or fees. In addition, receipt or credit of money via electronic payment channels such as NEFT or RTGS are free. The deposit or collection of cheques drawn by central or state government is also free of cost. There are no account closure fees or charges in case of SBI small account.
