Whether you have an SBI savings account or a home loan, there are quite a few things – including interest rates and charges – you need to know while availing any service from the bank. Being aware of these things and charges will make your banking experience smoother and bereft of any unpleasant surprises which may arise later on. Here we are taking a look at 10 such important things:
1. Savings account interest rates
The rules for earning interest rates in an SBI savings account balance has changed. The rate of interest will no more be a fixed percentage but will vary as per the changes in the repo rate as set by the RBI. However, the variable interest rate will be applicable only on balance above Rs 1 lakh, while those with lesser balance will continue to earn 3.5 per cent per annum. Therefore, Small depositors will not be impacted. Effective 1st May 2019, the savings bank interest rate for balances above Rs 1 lakh will be 2.75 per cent below RBI s Repo Rate i.e. 3.25 per cent. The RBI repo rate is currently at 6 per cent.
2. Fees and Charges
As a bank account holder or if you are availing a loan from the bank, it is important that you are aware of the various fees and charges that the bank levies. Some of them could be mandatory while some others may be levied if a certain condition is not met.
Here are some important charges in the case of savings account effective 01/04/2017 and updated up to 24.07.2017 :
- Stop payment instruction – Rs 100 plus GST
- Duplicate passbook Rs 100 plus GST or Rs 50 plus GST per page (40 entries)
- Transfer of Home Branch account – NIL
- Cheque Returned Charges for Cheques drawn on SBI (for insufficient funds only) Rs 500 plus GST, irrespective of the amount
- Cheque returned charges for Cheques drawn on SBI (for technical reasons) Rs 150 plus GST
- Failed Standing Instruction (S.I.) in loan account Rs 250 plus GST
- Signature verification Rs 150 plus GST
- ATM card/ KIT returned by courier due to wrong address Rs 100 plus GST
- Issue of Demand Drafts/ Bankers Cheque
Up to Rs 5,000 Rs 25 (incl. GST)
Above Rs 5,000 up to Rs 10,000 – Rs 50 (incl. GST)
Above Rs 10,000 up to Rs 1,00,000 – Rs 5 (incl. GST) per Rs 1000 (Min.Rs 60 incl.GST)
Above Rs 1,00,000 – Rs 4 (incl. GST) per Rs 1000 ; Min.Rs 600 incl.GST, Max.Rs 2000 incl. GST
- Savings Bank account closure charges ( Effective 01.10.2017):
Up to 14 days of opening – (Free look period) – NIL
After 14 days upto 1 year of opening of account – Rs 500 plus GST
Beyond 1 year of opening of account – NIL
3. Penalty for non-maintenance of the minimum average balance
Most bank savings account has a requirement of maintaining a minimum average balance on a monthly or quarterly basis failing which there is a penalty that the bank levies.
Charges per month for Non Maintenance of Monthly Average Balance (MAB)
(Effective 01/04/2017 and updated up to 24.07.2017)
- MAB of Rs 5000 at Metro Centre branches
Shortfall <=50% – Rs 50+GST
Shortfall >50 75% – Rs 75+GST
Shortfall > 75% – Rs 100+GST
- MAB of Rs 3000 at Urban Centre branches
Shortfall <=50% – Rs 40+GST
Shortfall >50 75% – Rs 60+GST
Shortfall > 75% – Rs 80+GST
- MAB of Rs 2000 at Semi-Urban Centre branches
Shortfall <=50% – Rs 25+GST
Shortfall >50 75% – Rs 50+ GST
Shortfall > 75% – Rs 75+GST
- MAB of Rs 100 at Rural Centre branches
Shortfall <=50% – Rs 20+GST
Shortfall >50 75% – Rs 30+GST
Shortfall > 75% – Rs 50 +GST
In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder. It has to be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.
4. Fixed Deposit interest rates
SBI has increased the fixed deposit rates on deposits of 1 year to less than 2 years while decreasing the rate slightly for other long term deposits. The new rate of interest is effective from May 9, 2019. The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on SBI Tax Savings Scheme 2006 (SBITSS) Retail Deposits and NRO deposits shall be aligned as per the proposed rates for domestic retail term deposits.
The latest SBI FD rates ( For deposits below Rs 2 crore)
- The rate of interest for deposits ranging between 7 days and up to 1 year has remained unchanged.
- On deposits which are ‘1 year to less than 2 years’, the rate of interest has been increased from 6.8 per cent to 7 per cent
- On deposits which are ‘2 years to less than 3 years’, the rate of interest has been decreased marginally from 6.8 per cent to 6.75 per cent.
- Similarly, on deposits which are ‘3 years to less than 5 years’, the rate of interest has been decreased marginally from 6.8 per cent to 6.70 per cent.
- And, on deposits which are ‘5 years and up to 10 years’, the rate of interest has been decreased from 6.85 per cent to 6.60 per cent. Senior citizens will continue to get an additional rate of interest of 0.5 per cent on their deposits.
5. MCLR rates
Effective May 10th, the MCLR across all tenures of SBI has been reduced by 5 basis points. This reflects a lower cost of funds for the SBI. The tenor-wise MCLR effective from 10th May 2019 will be as under:
6. Home loan interest rates
If you are looking at a home loan from SBI, there are few things to know before you approach them. They are :
(i) MCLR of SBI
(ii) Mark-Up on your loan
(iii) Amount of loan that you wish to avail
(iv) Whether you are salaried or a non-salaried
(v) Your gender
(vi) Your risk group as determined by SBI
(vii) And lastly on the LTV ratio.
Currently, the home loan interest rate varies between 8.7 per cent to 9.25 per cent, depending on the quantum of loan, gender, LTV and the profession.
7. Missed Call Banking
Missed Call Banking is a feature from State Bank of India which involves Banking by giving a Missed Call or sending an SMS with pre-defined keywords to pre-defined numbers. This feature can only be activated for the mobile number that is registered for a particular account with the Bank. If you have an Android, Windows, iOS or Blackberry phone, you can download SBI Quick app from the respective App Store to use the services.
YONO SBI may be used to do banking activities, investing, buying insurance, paying bills or booking IRCTC tickets and getting loans or even do some shopping. In one single app, you can manage all your money related transactions and anything to do with your finances. For basic banking transactions such as withdrawing cash from ATM without the card, checking your account balance, creating a fixed deposit, adding beneficiary etc., one need not log on to the net banking of the SBI, but all those activities may be done through the SBI YONO app itself
9. Cardless translations
If you as an ATM user tries to stay from withdrawing cash from ATM because of the fear of skimming, there’s good news for you. SBI has made it possible for the account holders to withdraw cash from ATMs even without the debit card. Cardless cash withdrawals have been made possible through SBI YONO app which can be downloaded or accessed through the SBI Yono website and put to use when one is not carrying the card but needs cash.
In case of any Grievance with the services of the Bank one may contact the Branch Manager or call at Toll free Nos 18004253800/1800112211 or send SMS UNHAPPY to 8008202020 or submit the complaint/feedback online as per the complaint form available at www.sbi.co.in. Simultaneously, one may raise a complaint at email@example.com
In case the grievance is not resolved within 10days from the date of registration or You are not satisfied with the resolution offered by the branch, one may contact the Network Nodal Officer, the address of which can be had from the bank branch. Still, if the complaint remains unresolved to your satisfaction, you may approach the Banking Ombudsman.