SBI Savings Plus Account Review: Interest Rates, Minimum Balance

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Are you confused about what to choose? A regular SBI Savings Account or SBI Savings Plus Account? This article is an extensive SBI Savings Account Plus Review – Find out everything you need to know.

The country’s most infamous bank, State Bank of India (SBI) offers various types of accounts, where the account holders can invest their hard-earned money with worrying about any sort of fraud. Other than regular Savings Account, SBI also offers Fixed Deposit (FD), Recurring Deposit (RD) and Savings Plus Account.

Well, SBI’s Savings Plus Account is linked with MODS.

SBI Savings Plus Account Review: Interest Rates, Minimum Balance

In simple terms, A Savings Plus Account is a Basic Savings Account that is linked to MODS (Multiple Option Deposit Scheme). Now, in the Multiple Option Deposit Scheme, the surplus fund above the threshold limit in the savings account is automatically transferred to Term Deposits opened in multiples of Rs.1000.

Key Details and Features:

  • You can open the MODS account through online SBI or by Visiting your nearest branch.
  • The eligibility for SBI Savings Plus Account is the same as it is for a Regular Savings Account.
  • The minimum term of the deposit is 1 year, and the maximum term of the deposit is 5 years.
  • The minimum term deposit amount for MOD creation is Rs.10,000, and after that, it is done in multiples of Rs. 1000 each. However, there is no limit for the maximum term deposit amount.
  • The tax is deductible at source if you have earned Rs. 10,000 in interest during the financial year
  • You can use it to secure a loan
  • Auto-Renewal is not applicable
  • Nomination facility is available with the SBI Savings Plus Account.
  • If you are living in a Metro and Urban area, then you are required to maintain a monthly average balance of 3000. But if you are living in a semi-urban area or a rural area, then you are required to maintain a balance of Rs.2,000 and Rs.1000, respectively.
  • A passbook is issued to record all your transactions.

Penalties on Saving Plus Account in SBI

After 5 long years, SBI is again implementing penalties on all accounts without a minimum balance. However, the penalty amount will vary from one place to another.

In metro:

Rs. 100+ service tax for accounts with less than 75% of the minimum balance.

Rs. 50 + Service tax for accounts with less than 50% of the minimum balance.

Also Read: 7 Best SBI Credit Cards In India

Interest for SBI Plus Savings Account:

Tenure Interest Rate p.a. (General Public) Interest Rate p.a. (Senior Citizen)
7 to 45 days 5.75% 6.25%
46 to 179 days 6.25% 6.75%
180 to 210 days 6.35% 6.85%
211 to less than 1 year 6.40% 6.90%
1 year to less than 2 years 7.00% 7.50%
2 years to less than 3 years 6.75% 7.25%
3 years to less than 5 years 6.70% 7.20%
5 years to up to 10 years 6.60% 7.10%

Transaction and withdrawal Charges:

SBI charges Rs.50 for each transaction after the first three transactions you have made. While for current accounts, the penalty can go up to Rs. 20,000.

The first three transactions from other banks and the first 5 transactions from SBI will be free. Exceeding this, SBI levies a charge of Rs.10 per transaction from SBI ATMs and Rs. 20 per transaction from other banks’ ATMs.

However, in case of an account having a balance of Rs. 25000, no charges shall be levied on withdrawals from SBI ATMs.

Every debit cardholders with an average quarterly balance of Rs.25,000 gets the facility of receiving SMS alerts and shall be charged Rs.15 every quarter. There is no charge on UPI/USSD transactions of up to Rs.1,000.

How to open SBI Savings Plus Account with MODS?

This scheme works in all SBI branches; you can visit any nearest and submit an application to convert your regular Savings Account into Savings Plus Account with MODS by giving a signed undertaking to maintain the minimum balance of Rs.10,000, or you can even open separate Savings Plus Account.

Also Read: SBI mVisa New Mobile based payment solution

If you already have a regular SBI Savings Account, then no extra formalities are required. However, they may ask you to provide your identity proof, address proof, and passport size photograph.

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Sushma Singh

Sushma is a full-time blogger and financial expert. Join Sushma and 10,000 monthly readers here to learn how to save and invest your money wisely.

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