OnlineSBI: At a time when majority of banks are decreasing bank deposit rates, bank depositors are looking for options that can help them increase their returns without changing going for undue risk that may cause them loss. In such a scenario, SBI account holders can heave a sigh of relief as the largest commercial bank in India is offering SBI Savings Plus Account opening option.
According to Online SBI – sbi.co.in – “Savings Plus Account is a Savings Bank Account linked to Multi Option Deposit Scheme (MODS), wherein surplus fund above a threshold limit from the Savings Bank Account is transferred automatically to Term Deposits opened in multiples of Rs 1000.”
Yes, that means money from your savings account is transferred to a fixed deposit in this scheme. The period of this term deposit ranges from one year to five years.
In common practice, it is also known as sweep-in facility or flexi fixed deposit (FD) offered by the SBI and some other banks. When a SBI customer opens the SBI savings plus account, it’s the same concept wherein the amount above a specified – by you – threshold is transferred to the fixed deposit (FD). And in case the amount falls short of the minimum account balance, the deficit is transferred from the FD so as to maintain the minimum savings account.
Eligibility criteria for opening SBI Savings Plus Account
According to the SBI website, there are eligibility criteria for opening SBI Savings Plus account:
1] All individuals having valid KYC documents are eligible to open Savings bank account and
2] Singly, jointly, or with Either or Survivor, Former or Survivor, Anyone or Survivor, etc. facility.
For KYC requirements, the customer has to specify whether’ First in First Out” or “Last in First out” principle should be applied for break opening of deposits. In absence of any mandate the “last in First out” principle will be applied.
Key features of SBI Savings Plus Account
As per the official website of the SBI, here are the key features that a SBI customer can get after opting for SBI Savings Plus Account option:
1] Period of deposit is 1-5 Years;
2] ATM card;
3] Mobile banking;
4] Inter Net banking
5] SMS alerts;
6] Loan against MOD deposits available;
7] Minimum threshold limit for transfer to MOD – Rs 35000;
8] Minimum amount of transfer to MOD Rs 10,000 in multiples of Rs 1,000/- at one instance;
9] 25 free cheque leaves per annum. Further cheques will be issued with charges based on Quarterly Average balance maintained by the customer;
10] Transfer of accounts through Internet Banking;
11] Maximum Balance: No Limit
12] A Pass Book is issued to record the transactions. Duplicate pass book can be issued if original is lost, on payment of charges. Statement of accounts can also be sent through e-mail; and
13] Monthly Average Balance: NIL.