5 Things To Know About SBI's Basic Savings Bank Deposit Account

NDTV Profit Team

06 Apr 2019, 06:51 PM IST

The interest rates on SBI's BSBD account is similar to that of regular savings bank accounts.

State Bank of India (SBI) offers several types of zero balance accounts such as the basic savings bank deposit (BSBD) account and the no frills account. Zero balance accounts are saving accounts where average monthly balance (AMB) rule is not applicable. In other words, the account holder is not required to maintain any particular balance with the bank in order to ensure operability or avoid any penalty. Average monthly balance (AMB) is the minimum average of deposits required by the bank customers in their savings bank accounts. A BSBD or basic savings bank deposit account does not require customers to maintain any particular minimum balance, according to SBI's website - sbi.co.in. (Also read: All You Need To Know About SBI Tax Savings Fixed Deposit Account)

Here are 5 things to know about SBI's basic savings bank deposit (BSBD) account, which is a zero balance account:

1. A BSBD account can be operated singly, jointly, or with either or survivor, etc, according to SBI.

2. Holders of BSBD account are not eligible for opening any other savings bank account in that bank. If a customer has any other existing savings bank account in that bank, he/she will have to to close it within 30 days from the date of opening a BSBD account, according to SBI's website.

3. The interest rates on SBI's BSBD account is similar to that of regular savings bank accounts. SBI currently offers an interest rate of 3.50 per cent per annum on balance up to Rs 1 crore and 4.00 per cent per anuum on deposits more than Rs 1 crore, according to SBI's website.

4. Maximum of 4 withdrawals in a month is allowed in a BSBD account, which includes ATM withdrawals at own and other bank's ATMs and transactions through other mode including RTGS/NEFT/clearing/branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc.

5. SBI's basic savings bank deposit (BSBD) account comes with a Basic RuPay ATM-cum-debit card, issued free of cost. The account holder can use this card at ATMs or use the withdrawal forms at branches to withdraw cash, as mentioned on SBI's website.