SBI takes BIG decision: No minimum balance required for savings account

The State Bank of India (SBI) Wednesday brought massive news for its 44.51 crore savings bank (SB) account holders. In a big decision towards "Customer First Approach", India's largest public lender, the SBI decided to bring relief to its savings account holders by waiving off the requirement for maintaining minimum balance in SB accounts. In another major relief to its crores of customers, the SBI said it has waived off SMS Charges.

Currently, SBI savings bank account customers need to maintain an average monthly balance of Rs 3000, Rs 2000 and Rs 1000 in metro, semi-urban and rural areas respectively. SBI used to impose a penalty of Rs 5 to Rs 15 plus taxes on non-maintenance of average monthly balance.

The decision also means that SBI will not be charging you for failing to maintain the Average Monthly Balance (AMB) for all SB accounts. "The charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts," it said.

Interest Rate on SBI savings account reduced to flat 3% per year

In another key decision, the SBI rationalised its interest rate on savings bank accounts to a flat 3 per cent per annum. "Bank has also rationalised interest rate on SB Account to a flat 3 % p.a. for all buckets," it said.

Currently, the interest rate on SB accounts is 3.25 per cent for deposits up to Rs 1 lakh in SB accounts, and 3 per cent for deposits above Rs 1 lakh.

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