State Bank of India is the largest bank in the country. Millions of Indians open their accounts in SBI. It is a government bank, which maintains trust and there is no need to worry about your money. SBI Bank provides security and convenience of banking. The main purpose of opening a savings account is to secure the amount of money as well as the interest received on it. In this article, we will discuss in detail about the interest rate of SBI savings account, its terms and conditions, account types, method of calculation of interest, taxation and other important information related to it.
Types of SBI Savings Account
SBI Bank offers several types of savings accounts. All of these accounts have different features and rules:
Regular Savings Account
- For general customers
- Minimum balance ₹3000 in urban areas, ₹2000 in semi-urban areas, ₹1000 in rural areas
- ATM, Mobile Banking, Net Banking facilities
Basic Savings Bank Deposit Account
- Maximum withdrawal in this account is 4 times in a month.
- You do not need a minimum balance in this account.
- Designed for poor and economically weak people.
Small Account
- Small account can be opened if a person does not have KYC documents
- Limited Service
SBI Savings Account Opening Process
Online Process
- Visit SBI website or YONO app
- Go to “Apply Online” and select “Savings Account”
- Fill the form and upload documents
- Visit your nearest branch for KYC verification
Ofline Process
- Visit the nearest SBI branch
- Fill the account opening form
- Submit the required documents (Aadhaar, PAN, Photo)
- The account will be activated after completing KYC
Why is the interest rate on savings account low
The interest rate on savings account in SBI and other banks is lower than fixed deposits, mutual funds etc.
- This account is more liquid, you can withdraw your money anytime.
- Your money is safe here.
- The bank uses this money to give loans, which gives limited returns.
Benefits of SBI Savings Account
- It is the largest bank in India and is a government bank.
- SBI Bank has branches everywhere and ATM services are available 24×7
- Digital banking facility (YONO, Net Banking) is available.
- Direct benefit of government subsidy and DBT
- Mobile and internet banking are free
Comparison with other banks in interest rate
| SBI BANK | 2.70% |
| HDFC BANK | 3.00% |
| ICICI BANK | 3.00% |
| AXIS BANK | 3.00 – 3.50% |
| KOTAK MAHINDRA BANK | 3.50% – 4.00% |
| IDFC FIRST BANK | 4.00% – 7.00% |
When and why do interest rates change?
SBI interest rates are based on RBI repo rate and other economic conditions. When RBI repo rate decreases, the savings interest rate falls. When inflation rises and interest rates go up, the bank also increases interest on savings account.
