Existing SBI saving account can also be converted to salary accounts, according to the lender.
State Bank of India or SBI offers the facility of opening a salary package account, which is a special savings account offered to salaried customers. According to SBI's website- sbi.co.in, a salary package account is a zero balance account. This means that monthly average balance (MAB) rule is not applicable. Monthly Average Balance (MAB) is the sum of all end of the day (EOD) closing balance divided by the number of days in that month. Customers get a number of facilities such as ATM-cum debit cards and internet banking with salary account.
Here are 10 things to know about SBI salary package account:
- SBI offers salary account packages for varied sectors such as central government, state government, defence forces, paramilitary forces, police forces, corporates/institutions, among others.
- For opening a salary account with SBI, eligible customers must have these documents: two passport size photographs, proof of identity and address as per standard account opening process, proof of employment and latest salary slip. For joint accounts, the proof of identity and proof of address are required of both the applicants.
- Four variants, namely silver, gold, diamond and platinum are available under salary accounts, depending on the level of the employee's gross monthly salary or rank/ designation of the employee. These variants have different facilities, according to SBI's website.
- Existing saving account with SBI can also be converted to salary accounts.
- In case of SBI salary package account, upgradation from one variant to another is also possible. On production of proof of gross salary per month/ increase in rank or designation, which makes the applicant eligible for higher variant of the account, the branch upgrades the account to the eligible variant, according to SBI's website.
- ATM-cum debit cards are issued free of cost to all salary package customers and annual maintenance charges are also waived, according to SBI. Issuance of ATM-cum-debit cards depends upon the variant of the salary account.
- Complementary Personal Accident Insurance (PAI) and Air Accident Insurance (AAI) cover are also provided with salary package account holders. Maximum coverage amount depends upon the type and variant of the salary package account.
- In case, the monthly salary is not credited into the account for more than three consecutive months, the special features offered under salary package accounts stand withdrawn and the account is treated as normal savings account under the standard charge structure. All charges are levied and applied as applicable to normal savings accounts in such a case, according to SBI.
- National Pension System (NPS) and Public Provident Fund (PPF) facilities are also available with salary package accounts.
- In case of change of job, the account holder can still continue to draw the salary through SBI's salary package account. In such a case, he/she must intimate the employer about the existing bank details, so that the monthly salary credits are routed through the same account. He/she also needs to inform the bank branch for the required change in employer mapping with the bank.
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