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No minimum balance needed for SBI savings bank accounts

SBI has also rationalised interest rate on savings account to a flat 3% for all savings bank account holders.

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Last Updated: Mar 13, 2020, 09.18 AM IST
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The State Bank of India (SBI) announced on March 11, 2020, that it has waived off the requirement of holding average monthly balance for savings accounts. "State Bank of India has decided to waive maintenance of Average Monthly Balance (AMB) for all Savings Bank Accounts," the bank's press release stated.

From now on all SBI customers will enjoy the zero balance facility in their savings bank accounts. This, according to the press release, will benefit 44.51 crore savings bank account holders.

It added that the charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts.

Currently, SBI savings bank account customers need to maintain an average monthly balance of Rs 3,000 in metro, Rs 2,000 in Semi urban and Rs 1,000 in rural areas. Further, the bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of average monthly balance as stated above.

The bank has also waived off SMS charges levied on quarterly basis.

The bank has also rationalised interest rate on savings accounts to a flat 3 per cent per annum for all savings bank account holders. Previously, savings accounts with a balance of less that Rs 1 lakh earn 3.25 per cent a year, while those with more than Rs 1 lakh earn 3 per cent.

SBI had reintroduced minimum balance charges in April 2017 after five years of waiving it. The penalty for not maintaining a minimum balance was the cause of much heartburn as fines were levied on those who did not have enough money in their accounts.

With effect from March 10, 2020, the PSU bank has also revised the interest rate on fixed deposits and MCLR.

(With inputs from Times of India)

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