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SBI's Small Account: How It Works, Interest Rates, Other Details

Unlike, SBI's savings bank account, one does not require to maintain an average minimum balance (AMB) in this kind of account.

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SBI's Small Account: How It Works, Interest Rates, Other Details

The maximum balance amount that can be maintained in small account is Rs.50,000.

State Bank of India (SBI) offers certain accounts which are primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees. Small account, one such product offered by SBI, can be opened by any individual who is above 18 years and do not have officially valid KYC (Know Your Customer) documents, said country's largest lender on its corporate website- sbi.co.in. However, there are many restrictions in operation of small account due to the relaxed KYC, the lender added.
Here are 10 things to know about State Bank of India (SBI) small account:
  1. SBI's small account can be opened singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc facility by any individual who is above 18 years of age. 
  2. Unlike, SBI's savings bank account, one does not require to maintain an average minimum balance (AMB) in this kind of account. 
  3. Interest rates of SBI's small account are similar to that of regular savings bank accounts.
  4. The maximum balance amount that can be maintained in small account is Rs.50,000. 
  5. 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 bank's website.
  6. Customers also get basic RuPay ATM-cum-debit card free of cost and 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.
  7. Aggregate of all withdrawals and transfers in a month should not exceed Rs 10,000, said SBI and the aggregate of all credits in a financial year is limited to Rs 1 lakh. 
  8. Account holders are allowed a maximum of four withdrawals in a month, including ATM withdrawals at own and other bank's ATMs. One also doesn't need to pay account closure charges, according to bank's website.
  9. If KYC documents are not submitted to the bank within 24 months of opening of the small account, no transaction other than for closure of account is permitted.
  10. SBI's small account can be converted to regular savings account upon submission of KYC documents.




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