Most banks have segmented savings bank accounts based on your needs. The higher balances that you are willing to maintain, the better services you will get. So, don’t just look at the interest rates when opting for a bank account.
You will also need to maintain the specified balance based on the account type, which can vary from one bank to another. For example, small savings banks can ask a monthly average balance (MAB) of Rs 5,000 in metros and Rs 2,500 in non-metros. Large private banks may require Rs 10,000-15,000 MAB in metros and Rs 500-1,000 in semi-urban areas. Public sector banks have the lowest MAB requirement.
If we take an example of SBI, The no-frills account—a basic savings bank deposit account—requires zero minimum balance, and there’s no limit on the maximum amount. But you don’t get free checkbooks, according to the bank’s website. Free withdrawals are only available at the bank’s branch or ATM. The customer gets a Rupay ATM-cum-debit card.
But if you opt for a savings account, you can get a whole host of services. There’s mobile banking, SMS alerts, 10 cheque leaves in a financial year, customers can transfer online. There is no requirement for minimum balance either. Then there’s the savings plus account. The bank account is linked to a deposit scheme. Whenever your account balance is above a specific limit, the money is automatically transferred to a deposit. Besides all the features of a savings account, the customer also gets a loan against the money transferred to the linked deposit, 25 free cheque leaves, the money transferred to the deposit earns higher interest.