Screenshot of Savings Home Page State Bank of India

Savings accounts are a vital part for anyone who wishes to set some funds aside for a rainy day. The account provides a cost-effective means for customers to set their funds aside from their main transaction account. Furthermore, these accounts often offer lower fees and competitive interest. State Bank of India Savings Accounts offers customers variety and easy accessibility. This review takes a closer look to determine whether it measures up to some of the best savings accounts in the world.

Some of the best savings accounts are offered by Bank of Ireland, and we recently did a review.

About State Bank of India

State Bank of India
Screenshot of State Bank of India Home Page

The bank was founded over 200 years ago in Calcutta and enjoys a rich history. Many name changes and mergers later, the bank was finally known as the State Bank of India. Great economic reform and the opportunity to expand allowed the bank to set root in the rural areas to uplift agriculture and other rural activities.

Today, the bank is at the top in terms of asset holdings in India. The nearest competitor only holds a quarter of the asset holdings. The bank is known for its vast product range and still provides services geared towards farmers and those in rural areas.

See a recent review we did on another bank that is not part of Europe or America: Standard Bank.

Tips To Use Savings Accounts to Provide Maximum Savings

Savings accounts allow customers to set some funds aside to build up a nest egg. Savings accounts should be affordable and easily accessible. Furthermore, it should also allow customers to achieve their savings objectives.

Don’t Try Too Much Too Fast

Often the biggest mistake customers make when they start their savings journey, is that they commit too much too soon. Rather break this down into smaller chunks and do it regularly. The cumulative effect of the funds plus compound interest will do the rest. The important thing is to just get started.

Pick An Account That Suits the Need

Another obstacle that often causes customers to lose speed along their savings journey, is when they decide to commit too much for too long. This is when they decide to put most or all of their funds in a fixed deposit for a number of years without considering their emergency funds.

Study the Terms and Conditions

It’s important to choose the account that carries the least amount of financial burden. If the savings account levies transaction fees, it might be prudent to look for an account that doesn’t if transactions are required. Also, fixed deposits may charge an early withdrawal fee for customers who wish to access their funds before the end of the term.

Patience Is Needed for the Best Results

Those who wish to benefit from their savings fully will need to invest their time wisely. This means allowing their savings to grow and also for the interest to have an effect on the savings. It is also a good idea to try and forget the funds and wait out the term to enjoy the full effect, especially where compound interest is concerned.

State Bank of India Savings Accounts Product Offerings

Screenshot of Savings Options State Bank of India

Premium Savings Account

Described to customers as an enriched version of the standard Savings Bank account, this account provides additional services such as concessions and add-ons.

  • Customers who are eligible for the regular savings account may apply for this one.
  • The account provides access to an auto-sweep facility. The intervals, however, are determined by the customer.
  • The Term Deposits and Special Term Deposits are created under the MOD scheme. The minimum opening deposit here is a Rs 10,000. The auto-sweep facility on this account can be added once the account reaches Rs 25,000. Additional deposits are made in intervals of Rs 1,000.
  • Customers can withdraw their deposits conveniently through unitised break-ups.
  • TD and STD accounts are opened for a period of 1 to 5 years.
  • This account provides a check book as long as the mobile number of the customer is recorded. Furthermore, the first 20 multicity checks are free.
  • Also, the ATM card is issued free of cost.
  • Finally, the account provides access to internet banking and mobile banking facilities.

Savings Plus Account

Customers who wish to fast-track their savings and have the facilities in place for automatic savings will find this account ideal. The account is linked to MODS, which means that surplus funds above a certain amount are automatically transferred to term deposits in multiples of Rs 1,000.

  • The minimum retainer required for the automatic transfers to kick in is Rs 25,000. Also, the opening deposit required for the term deposit is Rs 10,000.
  • These accounts are available for terms between 1 to 5 years.
  • Customers can also make additional payments to the term deposits with the MODs Last In First Out facility.
  • All other features and benefits of a normal Savings Bank Account apply.
  • Finally, a nomination facility is also available.

Yuva Savings Bank Account

This is the ideal savings account for the young adults who can’t afford to be encumbered by too many restrictions. Furthermore, the account provides a good platform for customers to learn the basics of saving.

  • The account is suitable for those between the ages of 18 and 30. The account will remain as is even when the account holder reaches the age of 30.
  • Also, the other facilities applicable to the normal Savings Bank Account applies to this one as well. These include the checkbook, ATM card, and more.
  • Finally, the first 20 multicity checks are free of charge.

Basic Savings Bank Deposit Account

This is the basic form of a savings account and can be opened by anyone who satisfies the Know Your Customer criteria. Furthermore, the account is designed for rural area and those in the lower income groups who would ordinarily have a tough time opening a savings account.

  • There is no maximum deposit limit to this account.
  • Also, customers enjoy a competitive interest rate on the account.
  • Customers can make their withdrawals from branches or through ATMs.
  • A basic ATM card will be issued.
  • Finally, many of the transactions are free on the account.

Small Account

Customers who have a hard time coming up with the KYC documents can open this account in order to provide accessibility to a wider audience. Furthermore, the account is available to those over the age of 18.

  • This account is developed for the poorer or more rural parts of society who find it hard to establish a formal banking relationship.
  • These accounts are available at all branches, except specialized branches.
  • Furthermore, because the account has basic KYC requirements, there is a maximum deposit of Rs 50,000.
  • Customers enjoy competitive interest rates.
  • There are a number of free transactions available on the account.
  • Finally, the account has a checkbook and ATM card linked.

PehlaKadam Savings Account for Minors

This account is suitable for a minor of any age. Furthermore, they open the account jointly with a parent or guardian.

  • There is no minimum balance on this account, however, the account does carry a maximum cap.
  • The account provides enquiry rights on internet banking for certain transactions.
  • Furthermore, a check book is available where the customer’s mobile number is available.
  • Customers also have access to the auto-sweep facility.
  • There is also the option for the parent or guardian to have an overdraft against the fixed deposit. Certain terms and conditions will apply.
  • The account also provides access to standing instructions.
  • Personal Accident Insurance Cover is available for the parent.
  • This account also offers the Smart Scholar child plan.
  • Finally, the account enjoys a competitive interest rate.

PehliUdaan Savings Account for Minors

This account is suitable for those over the age of 10, who can produce a uniform signature. Furthermore, this account is in the sole name of the minor.

  • There is no minimum balance requirement, however, there are maximum limits to the account.
  • Customers have access to internet and mobile banking for certain transactions.
  • A check book is available where the mobile number of the customer is available.
  • Furthermore, customers receive a photo embossed ATM card. A  transaction or withdrawal limit of Rs 5,000 applies.
  • Also, customers have access to an auto-sweep facility.
  • The account includes access to a child plan.
  • There is also access to a standing instruction.
  • Finally, customers enjoy a competitive interest rate on the account.

Customers who prefer a current account should see the offering from State Bank of India.

Critical Reviews Rating State Bank of India Savings Accounts – 9 of 10

Screenshot of Some Savings Account Features State Bank of India

State Bank of India provides customers from all walks of life with access to even the most basic savings accounts. This makes it possible for even those who find themselves on the fringes of society to still enjoy the benefits of savings accounts.

Although this bank pulls out all the stops, we still don’t know what the pricing is on the accounts. This forces customers to head on into the branches to find out this information. By providing this information upfront, customers can make an informed decision even before they set foot in the branch. This will provide the customers with a better customer experience, and the bank will enjoy more positive feedback.

The National Bank of Abu Dhabi could have had a perfect review on their current accounts. Find out why they didn't in a recent review we did.