SBI Savings Bank Account Interest Rate, Penalty For Insufficient Balance

SBI or State Bank of India provides a host of services under its personal banking portfolio. SBI, the country's largest bank, currently offers a rate of interest of 3.5 per cent on balance up to Rs 1 crore in its savings bank accounts - which can be opened either with or without a cheque book facility. SBI savings bank accounts have certain minimum balance or monthly average balance (MAB) requirements. SBI has set certain monthly average balance for its customers holding savings accounts with the bank. SBI charges a certain penalty for those customers who fail to meet the minimum balance criteria. This penalty levied by SBI, India's largest bank, depends upon the type of branch and degree of shortfall. SBI has said that the movie will benefit 25 crore of its customers.

SBI savings bank account interest rate

For balances up to Rs 1 crore, SBI offers an interest rate of 3.5 per cent per annum, according to its website - sbi.co.in. For balances above Rs 1 crore, SBI offers an interest rate of 4 per cent, it noted.

SBI minimum balance requirement

SBI has classified its branches into four types - rural, urban, semi-urban and metro. As per its latest rules, customers holding a savings bank account with a metro or urban SBI branch are required to maintain a monthly average balance of Rs 3,000. Those holding savings bank accounts in semi-urban and rural branches are required to maintain Rs 2,000 and Rs. 1,000 respectively.

Penalty for keeping insufficient balance in SBI savings bank account

From this month, SBI has revised its penalty charges for failing to meet its prescribed minimum balance rules. It had last month announced reduction of up to 75 per cent in the penalty charges.