State Bank of India's small accounts are primarily meant for economically weaker section of society to encourage them to start saving without any burden of charges or fees. These accounts can be opened by any individual who is above 18 years and do not have officially valid KYC (Know Your Customer) documents, said State Bank of India (SBI) on its website- sbi.co.in. However, there are many restrictions in operation of small accounts due to the relaxed KYC, the lender added. These accounts can be converted to regular savings account upon submission of KYC documents. (All You Need To Know About SBI's Tax Savings Scheme)
Given below are 5 things to know about SBI's small savings account
Minimum/Maximum contributions
There is no limit on minimum balance amount in case of an SBI small account. The maximum balance amount that can be maintained in this account is Rs 50,000. If the balance exceeds Rs 50,000 or total credit in the account exceeds Rs 1,00,000 in a year, no further transaction is permitted until the full KYC procedure is completed, according to the bank's website.
(Also read: Need To Make A SBI NEFT Transaction? Here Are The Key Details)
Interest rates
Interest rates of SBI's small account are similar to that of regular savings bank accounts. The bank offers an interest rate of 3.50 per cent per annum.
Benefits
Customers also get basic RuPay ATM-cum-debit card free of cost on opening of these accounts.
Withdrawal and transfer limits
Aggregate of all withdrawals and transfers in a month should not exceed Rs 10,000 in case of a small account. The aggregate of all credits in a financial year is limited to Rs 1 lakh, according to SBI. Account holders are allowed a maximum of four withdrawals in a month, including ATM withdrawals at SBI and other banks' ATMs.
Service charges
No annual maintenance charge is to be paid for SBI's small account. Receipt/credit of money through electronic payment channels like NEFT/RTGS are free. The deposit/collection of cheques drawn by central/state government are also free. There are no account closure charges in case of SBI small account.
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