INSUBCONTINENT EXCLUSIVE:
SBI's small account can be opened by any individual who is above 18 years.State Bank of India (SBI) offers various services under its
personal banking portfolio
Lender's savings bank account, one of such feature, allows customers to keep their money safe and helps them grow their savings moderately
The customer identification in case of a savings bank account is done on the basis of documents provided by the customer as proof of
identity and proof of address
However, there is another offering by SBI, known as small account, which can be opened even by customers who do not have KYC (Know Your
Customer) documents.SBI's savings bank accountIn case of a savings bank account, SBI charges an interest rate of 3.5 per cent per annum on
saving deposits balance up to Rs
Saving deposits balance above Rs
1 crore charges 4 per cent per annum interest rates, as mentioned on SBI's portal- sbi.co.in. Savings Bank account can also be linked to
Multi Option Deposit (MOD) account for earning higher term deposit interest on surplus money
Customers need to maintain an average monthly balance (AMB) in their savings bank accounts
Average Monthly Balance (AMB) is the minimum average of deposits required by the bank customers in their accounts
Customers failing to meet the AMB requirements in a month have to bear certain penalty charges. SBI's small accountSBI's small account can
be opened by any individual who is above 18 years
However, there are many restrictions in operation of the account due to the relaxed KYC
SBI's small account can be converted to regular savings account upon submission of KYC documents
This type of account is primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or
Unlike, SBI's savings bank account, there is no average minimum balance (AMB) required to be maintained in this kind of account.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.The maximum balance amount that can be maintained in SBI's small account is Rs.50,000
Interest rates of SBI's small account are similar to that of regular savings bank accounts.
