If you're considering opening a new savings account with SBI, the SBI Savings Plus Account may be a better option than a standard account. It offers not only savings account interest but also the opportunity to earn FD interest. However, most people aren't aware of this account. Learn about its various benefits and features here.

What is the SBI Savings Plus Account?

The SBI Savings Plus Account is linked to the bank's Multi Option Deposit (MOD) scheme. It offers auto-sweep. This means that as soon as your account balance exceeds a certain limit, the excess money is automatically converted into an FD. This FD earns you the same interest rate as the bank's fixed deposit.

How do you get the FD benefits?

The minimum balance required in this account is ₹35,000. As soon as this limit is crossed in your account, the amount above Rs 35,000 is converted into an FD. Then, you earn FD interest. The special thing is that, unlike a regular FD, your money is not locked in; it remains liquid. You can withdraw as much money as you want from the account at any time through an ATM or check, just like you withdraw money from a savings account.

Example:
Suppose you have a bank balance of Rs 100,000. Rs 35,000 will remain in your savings account, and the remaining Rs 65,000 will be converted into an FD. Now, if you withdraw ₹5,000 from your savings account, ₹5,000 will be withdrawn from your FD and returned to your savings account, restoring the limit to ₹35,000, and the remaining ₹60,000 will continue to earn FD interest.

How much interest is earned on FDs?
You can deposit money in SBI (MODS) for a period ranging from one year to five years. Interest rates vary depending on the year. FDs in this account earn the same interest as SBI FDs with a 1- to 5-year term. It's worth noting that a regular SBI savings account currently offers 2.50% interest, while FDs with 1- to 5-year term earn between 6.05% and 6.45%. Senior citizens receive an additional 0.50% interest. For more information, you can visit the bank's website or contact your nearest branch.

Features of a Savings Plus Account
Anyone can open this account.
Joint account facility is also available.
Upon opening, a checkbook is provided, just like a regular savings account.
You can withdraw funds from MOD in multiples of ₹1,000 to ₹10,000.
Mobile banking and internet banking are available.

Any ATM card is also provided.
If needed, a loan can also be taken against MOD.
Who is this account best for?
Those who frequently maintain a high balance in their account.
Those who want income like an FD but need the money immediately when needed.
Those who want to increase their savings automatically without any effort.

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