State Bank of India (SBI) offers the option of opening savings plus account under its personal banking portfolio. Savings plus is a savings bank account linked to multi option deposit scheme (MODS), wherein surplus fund above a threshold limit from the savings bank account is transferred automatically to term deposits opened in multiples of Rs 1,000.
Here's all you need to know about SBI savings plus account:
SBI's account can be opened by any individual who is eligible to open a regular savings bank account. One can do it singly or jointly.
Period of Deposits
The period of deposit varies from 1 to 5 years, according to SBI.
How It Works?
Any surplus funds retaining a minimum of Rs 25,000 in savings bank (to be set up by the customer) is transferred as term deposit with a minimum of Rs 10,000 and in multiple of Rs 1,000 at one instance.
In case of the balance falls below Rs 3,000, MODs are broken to maintain a balance of Rs 3,000 in the account.
The minimum threshold limit for transfer to MOD is Rs 35,000.
Pass book is issued to record the transactions. Duplicate pass book can be issued if original is lost, on payment of charges. Statement of accounts can also be sent through e-mail.
25 free cheque leaves per annum are also offered. Further cheques are issued with charges based on quarterly average balance maintained by the customer.
SBI offers the same interest rate on savings plus account as those on regular savings bank accounts. The bank offers an interest rate of 3.5 percent per annum on deposits less than Rs 1 lakh. On balance over Rs 1 lakh, it offers an interest rate of 3 percent per annum.
Facilities such as ATM card, mobile banking and internet banking are also available with SBI's account. Customers can also take loans against multi-option deposits.