SBI customers can reap higher interest from this savings account 

A savings account is a good option for parking cash you will want in the short-term or to cover an emergency. But the interest rate in a savings account is low, lower than fixed deposits (FD). State Bank of India (SBI), the country’s largest lender, now offers only 2.70% interest on savings bank deposits. There is also a minimum monthly balance obligation on  savings bank deposits. But if you are a SBI customer then there is an option where you can get more returns from your money.

SBI Savings Plus

Savings Plus Account is a unique savings bank account of SBI which is linked to Multi Option Deposit (MOD), a feature wherein surplus funds above a threshold limit from the savings bank account is transferred automatically to fixed deposits opened. Minimum threshold limit for transfer to fixed deposits is Rs 35,000.

In case the savings account balance falls below Rs 3,000, the amount would be deducted from an FD and would be credited to the savings account, thereby restoring the minimum balance.

The tenure of this term deposit ranges from 1 year to 5 years.

The interest rate applicable will be the same as an FD of similar tenure.

The interest rates that SBI offers on FD between 1 year to 5 years is between 5% and 5.30%.

Eligibility criteria

According to SBI, all individuals having valid KYC documents are eligible to open a Savings Plus Account.

This account can be opened in different modes – singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc.

Main features

— Minimum threshold limit for transfer to Multi Option Deposit (which is FD) is Rs 35,000.

— Minimum amount of transfer to MOD is Rs 10,000 in multiples of Rs 1,000 every time.

— There is no Monthly Average Balance requirement.

— Loan against MOD also available.

— 25 free cheque leaves per annum.

A passbook, ATM card, mobile banking, internet banking, SMS alerts facility also available for savings bank account customers.