A Savings Account is very beneficial with multiple advantages as detailed below:
For example, the current repo rate is at 6%. Hence, the current SBI Savings Account Interest Rate for the money which is beyond Rs.1 lakh will be arrived as below. SBI Savings Account Interest Rate (For above Rs.1 Lakh Balance)=Repo Rate-2.75%. SBI Savings Account Interest Rate (For above Rs.1 Lakh Balance) 3.25%=6%-2.75%. SBI Interest Rates on Savings Account. State Bank of India is one of the most reputed banks which provides you an interest rate of 3.5% on cash below Rs 1 lakh and an interest rate of 4% on cash above Rs 1lakh which is a standard rate of interest that any bank applies which can obviously change with time. There are safe lockers available for.
(1) Earns Interest on your Savings
This is the first and foremost benefit of opening a savings account. It starts earning interest on your money as soon as it is deposited. The interest rate is decided solely by the bank and changes from time to time. Regular interest depends upon the balance of the savings account.
Interest rate in savings account ranges from 3.5% to 7%.
(2) Provides Security of Funds
There is no risk involved in your savings account. It is considered as one of the safest investment alternatives. It even offers you the opportunity to put your money into another investment whenever the time comes.
- The highest interest rate offered by SBI is 5.40% p.a. For a tenure ranging between 1 year and 10 years for the general public and 6.20% p.a. For senior citizens. Do senior citizens get a different FD rate? Yes, senior citizens are eligible to get an additional interest of 0.50% than the regular rate.
- Please contact the nearest branch for applicable Card Rates. Global Business Branch 7th Floor, SBI Tower Mindspace Bhumi Park, 45, Ebene Cybercity E-mail: Manager GBB:gbb@sbimauritius.com Tel: (230) 404 4958 Fax (230) 454 6968. Main Branch 34, Sir William Newton Street, Port-Louis. Tel: (230) 203 4913 Fax (230) 208 0127 E-mails.
(3) No Lock-in Period
There is no lock-in period under savings account which means that you can withdraw your deposits anytime you need. There is no need to keep your money in this account for any specific period. You have full flexibility in withdrawal of amount from it.
(4) Offers Liquidity
You can withdraw the amount anytime 24X7 with the use of ATM card or debit card from your account during any emergency even when the bank is closed. In fact, being able to access your money when you need it, is one of the biggest benefit of having a savings account.
(5) Availability of Variety of Savings Account
Many banks offer comprehensive range of savings accounts from regular to premium suiting to your personal banking needs. There are different types of savings accounts offered by various banks that differ based on the interest rates and duration of time commitments. You can choose any of them which suits your financial objectives and requirements.
(6) Services of Customer Relation Manager
Now-a-days many of the banks engage a Customer Relation Manager (CRM) who will help not only solve your queries but also assist you in tax saving, investment, mutual fund schemes, insurance, bank procedures, etc. You need to just call your CRM and he/ she will assist you solve your problem.
(7) Online Banking Facilities
If you maintain a savings account, you can make many transactions online also such as payment of bills, fund transfers using RTGS/ NEFT or IMPS, etc. This will save your time and efforts.
(8) Provides ATM/ Debit Card
You will be offered a debit or ATM card with a nominal charge or without any charges, as offered by your bank. With the help of this card, you can withdraw the funds, make transactions in shops, make payments of bills, etc.
(9) Helps you Get Credit or Loan
The relation you maintain with the bank will help you in getting credits from the bank such as home loan, personal loan. You will also be in a position to negotiate with the banker on the interest rates.
(10) No Cap on Deposits
There is no limit on the amount deposited and number of times it is deposited.
(11) Facility to link Loan EMIs, Mutual Fund SIPs or RD deductions
You get a facility to link your monthly loan EMIs, Mutual Fund SIPs or RD deductions through the savings bank account.
(12) Free Mobile App
Most of the banks provide their mobile app for free. Through this app, you can get to know your account balance, check your statement, make transactions, easy transfer of money, etc.
SBI has made a very significant change in its Saving Account Interest Rate for balance of more than Rs 1 Lakh. It has linked the saving account interest rate and short-term loans to RBI Repo Rate. For those who are not aware, Repo Rate is the rate at which RBI gives loans to banks. The change is effective from May 1, 2019.
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Sbi Savings Interest Rates For Senior Citizens
Why SBI linking of Repo Rate is BIG change?
Banks in India have been very unfair about passing of interest rate change benefits to their customers. When the interest rate goes up, banks increase the interest rates on loans quickly but not so much for their deposits (like Fixed Deposits, etc). This can be solved to an extent if the loans and deposits both are linked to an external benchmark like Repo Rate. When there is any change in the benchmark the interest rates would be auto-adjusted. So SBI’s linking of Repo rate to saving account interest rate and some loans, it’s a step in right direction.
Also Read: 21 Hidden Charges in Saving Bank Account
SBI Saving Account Interest Rate:
Sbi Savings Interest Rate August 2020
After the change form May 1, 2019:
- SBI offers 3.5% interest on its saving account if the balance is less than Rs 1 Lakh.
- For balance of more than Rs 1 Lakh the saving account interest would be Repo Rate – 2.75%. As of date, the Repo rate is 6% and hence the interest would be 3.25%. This is lower than the small balance account.
This is first major change after the RBI had deregulated Saving account interest rates – which essentially meant that banks were free to set their interest rates. Before being deregulated every bank had to offer minimum interest of 4% on their saving account. At present most banks offer 3.5% on their regular saving account.
Along with the saving account, cash credit accounts and overdrafts with limits above Rs 1 lakh will also be linked to the repo rate, plus a spread of 2.25%.
Also Read:Which bank offers highest interest rate on savings account in India?
How does SBI action impact customers?
I think linking of deposit and loan rates to external benchmark is way to go as it makes transactions more transparent. Its more of an experimental idea and hence SBI has consciously chosen not to impact small depositors & borrowers. If this works out more banks and more products would adopt this practice.
Even after this, the bank still decides on the spread to the benchmark so today SBI decided that it would pay 2.75% less than Repo rate on savings account. Tomorrow it could easily change the 2.75% to 3%. So, the interest rates would still be in control.
Nevertheless, it’s a good move and I hope other major loans like Home, education and deposit products like FD, RD, etc are too marked to external benchmarks.
