Sbi Plus savings account Pros and Cons? Please Response.
- Thread starter Bubu
- Start date
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- bank account
arjungoyal12
KF Mentor
SBI plus savings account has an auto sweep facility enabled. So, it can be biggest pro and con at the same time
Narinder Kumar
KF Ace
The State Bank of India's (SBI) Savings Plus Account is a savings bank account linked to the Multi Option Deposit Scheme (MODS), where surplus funds exceeding a specified threshold are automatically transferred into term deposits. Below are the pros and cons of this account:
Pros:
Automatic Fund Transfer: Surplus funds above ₹35,000 are automatically swept into term deposits in multiples of ₹1,000, optimizing interest earnings.
Higher Interest Rates: Funds in MODS earn interest rates applicable to term deposits, which are typically higher than standard savings account rates.
Liquidity with Flexibility: The account allows easy access to funds. If the savings account balance falls below ₹3,000, MODS are automatically broken to maintain this balance, ensuring liquidity.
Comprehensive Banking Services: Account holders receive benefits such as an ATM card, internet banking, mobile banking, SMS alerts, and loan facilities against MOD deposits.
Cons:
Minimum Balance Requirement: A minimum balance of ₹25,000 must be maintained in the savings account to facilitate the auto-sweep feature, which may be high for some customers.
Limited Free Cheque Leaves: Only 10 free cheque leaves are provided per annum; additional leaves incur charges.
Potential Penalties: Failure to maintain the required balance can lead to penalties, and frequent breaking of MODS might affect interest earnings.
Complexity in Management: The automatic sweep and reverse sweep features may add complexity to account management for some users.
In summary, the SBI Savings Plus Account offers the advantage of higher interest earnings through automatic transfers to term deposits while providing liquidity and comprehensive banking services. However, it requires maintaining a substantial minimum balance and comes with certain limitations on free services, which potential account holders should consider.
Pros:
Automatic Fund Transfer: Surplus funds above ₹35,000 are automatically swept into term deposits in multiples of ₹1,000, optimizing interest earnings.
Higher Interest Rates: Funds in MODS earn interest rates applicable to term deposits, which are typically higher than standard savings account rates.
Liquidity with Flexibility: The account allows easy access to funds. If the savings account balance falls below ₹3,000, MODS are automatically broken to maintain this balance, ensuring liquidity.
Comprehensive Banking Services: Account holders receive benefits such as an ATM card, internet banking, mobile banking, SMS alerts, and loan facilities against MOD deposits.
Cons:
Minimum Balance Requirement: A minimum balance of ₹25,000 must be maintained in the savings account to facilitate the auto-sweep feature, which may be high for some customers.
Limited Free Cheque Leaves: Only 10 free cheque leaves are provided per annum; additional leaves incur charges.
Potential Penalties: Failure to maintain the required balance can lead to penalties, and frequent breaking of MODS might affect interest earnings.
Complexity in Management: The automatic sweep and reverse sweep features may add complexity to account management for some users.
In summary, the SBI Savings Plus Account offers the advantage of higher interest earnings through automatic transfers to term deposits while providing liquidity and comprehensive banking services. However, it requires maintaining a substantial minimum balance and comes with certain limitations on free services, which potential account holders should consider.
Any penalty charges on sweep in
Narinder Kumar
KF Ace
No..but you won't get same interest rate.
So,Which SBI savings account is better Normal Savings account or Savings Plus Account.
Narinder Kumar
KF Ace
Savings Plus
