SBI Savings Accounts Compared To Post Office Savings Accounts

Savings accounts are used for people to park their money safely with banks and financial institutions. Saving accounts provide a moderate interest rate - the interest rates offered on savings accounts are much lower than fixed deposits (FDs) or other investment schemes.  A savings account is thus a basic account that helps keep customers' money safe and offers to moderately grow their savings. State Bank of India (SBI), the largest lender of the country, and India Post, run by the Department of Posts, offer savings account options to customers.

Given below is a comparison of savings accounts of SBI and post offices throughout the country:

SBI saving accounts:

Savings accounts at SBI can be opened by an eligible individual in single name or jointly with others and by certain organisations/agencies approved by RBI, said SBI. The prospective customer will need to comply with the Know Your Customer (KYC) guidelines which are mandatory, stated sbi.co.in, SBI's website.

(Also Read: How SBI Fixed Deposit Holders Can Submit Forms Online To Avoid TDS)

The customer identification will be on the basis of documents provided by the customer as (a) Proof of identity and (b) Proof of address.

The applicant(s) will need to come to the SBI branch, in person, for opening the account and will sign at the relevant places in the presence of an SBI official.

SBI is required to obtain Permanent Account Number (PAN) of the customer or declaration in Form No. 60 or 61 as per the I.T. Act (vide Section 39A) from the person opening the account.

(Also Read: SBI Recurring Deposit Vs Post Office Recurring Deposit)

A passbook is issued in all saving bank accounts. Passbooks are immediately updated across the counter on request. Cheque books are issued on request. Twenty five cheque leaves are issued free in a year.

A free ATM cum debit card, SMS alerts, e-statement and nomination facilities are available for all SBI saving accounts.


Interest rates on SBI saving accounts:
Interest on SBI savings accounts is between the 10th and the last day of the month. Interest is credited on June 30 and December 31 every year.