State Bank of India (SBI), the country's largest lender, provides a range of accounts that are free of its monthly average balance (MAB) restrictions. These accounts - such as SBI's basic savings bank deposit (BSBD) account - can be operated with nil or zero balance. Major commercial banks such as public sector lender State Bank of India offer zero balance accounts such as BSBD accounts. SBI's Basic Savings Bank Deposit (BSBD) account does not restrict the account holder to maintain a specific average of daily balances in a month, according to the bank's corporate website - sbi.co.in. Also a type of savings account, the Basic Savings Bank Account is different from a regular savings bank account the customer is required to maintain a monthly average of Rs. 1,000-3,000 to avoid any penalty charges, according to the bank's website.
Here are 10 key features to know about SBI's Basic Savings Bank Deposit zero balance account (which is free from the bank's minimum balance restrictions):
1. Interest rate: The interest rates offered by SBI on BSBD accounts are the same as those on regular savings bank accounts. For savings deposits balance less than Rs 1 lakh, SBI offers an interest rate of 3.5 per cent per annum. On balance over Rs. 1 lakh, it offers an interest rate of 3.25 per cent per annum.
2. How to open: One can open a BSBD account on a single, joint or either-or-survivor basis at SBI, according to the bank's corporate website, sbi.co.in. A customer holding or applying for a BSBD account in SBI cannot have any other savings bank account in the bank. "If the customer already has a Savings Bank Account, the same will have to be closed within 30 days of opening a Basic Savings Bank Deposit Account," SBI mentions on its website.
3. Minimum/maximum balance allowed: There are no minimum and maximum balance requirements applicable to the State Bank of India BSBD account. This means the SBI account can be operated with any balance or even with nil balance.
4. Mode of operation: The BSBD account can be operated in single, joint, either or survivor, former or survivor and anyone or survivor modes of operation, according to SBI.
5. Know Your Customer (KYC) verification: An SBI basic savings deposit account can be opened by any individual with valid KYC (Know Your Customer) documents.
6. Cash withdrawal: A BSBD account holder can either withdraw funds from using withdrawal forms at the bank's branches or through ATMs.
7. ATM card: SBI's Basic Savings Bank Deposit account comes with a RuPay ATM-cum-debit card, which is issued free of cost. No annual maintenance charges are applicable to this ATM card, according to SBI.
8. ATM transaction limit: A maximum of four withdrawals/transactions in a month are allowed. This includes ATM withdrawals at ATMs of SBI and other banks, and NEFT/RTGS, online transactions/EMIs and cash transactions at branches. Once the customer utilizes the limit on number of withdrawals in a month, no further debits are allowed for the remaining period of the month.
9. Electronic fund transfer: The receipt or credit of money through electronic payment channels such as NEFT is free.
10. Account closure/maintenance charges: The BSBD zero balance account is also free of any charges for closure of account, or activation of an inoperative account.
Other SBI accounts that are free from minimum balance restrictions include financial inclusion accounts - such as the bank accounts opened under the government's Jan Dhan scheme, no frill accounts, salary package accounts, small accounts, and the "Pehela Kadam" and "Peheli Udaan" accounts (for minors), according to the SBI website.