The State Bank of India is a premium bank in India. The SBI, as it is popularly called is listed in the largest banks in India. It has also been listed in the Fortune Global 500 as the 236th biggest corporations in the world as of 2019. Besides this, the bank has several awards and accords to its credit. The bank engages the customers with its banking and financial services. To date, the bank has always delivered quality services, and the state-of-the-art infrastructure has popularized the bank. In the 19th century, the SBI bank was founded by the name Bank of Calcutta. The bank has a long history, which gives it the cutting edge in the financial world. The bank has launched and inaugurated over 24,000 banks across India. As the nationalized bank has vast experience in what it does, customer satisfaction is also an important factor. It is currently headquartered in Mumbai, Maharashtra.
The bank has a number of services to its credit. Thus, it offers premium services and a wide variety of products to fulfill the requirement of its customers. Retail banking, corporate banking, investment tools, credit and debit cards are some of the services offered by the SBI. Time and again, it has implemented various initiatives and facilities to assist its customers and attract more masses.
In this article, I will review the SBI bank to provide discrete guidance for the readers. So, let’s get started with the various products and that are currently provided by the SBI bank.
Services By SBI
In this article
The SBI bank has various services to offer. The bank offers world-class services and amenities to its customers. The SBI bank offers the following services to increase its customer base.
- Agricultural and rural
- International Banking
Services Provided Under Personal Category
Under the PERSONAL category, the products offered are as follows.
a. Basic Savings Bank Deposit Account
This is the most basic savings account with an interest rate starting at 2.70% per annum. Any individual from the backward sections of the society can park their merger funds in this account. The KYC documents are pre-requisites for opening this account. The is no restriction of minimum balance. The account can be opened by a single individual or together with another applicant as a joint account. The cheque book facility is not available.
b. Basic Savings Bank Deposit Small Account
The account offers relaxation on the official KYC documents. Any individual above 18 years can open this account as a single individual or together with another applicant as a joint account. The interest rate is offered at 2.70% per annum.
c. Savings Bank Account
This account also offers a decent interest rate of 2.70% per annum. There are several benefits associated with this account that makes it the most suitable for modern transactions. Mobile banking, Cheque books, YONO, Net banking are some of the amenities provided by opening this account.
d. Savings Account for Minors
The PehlaKadam and PheliUdaan are the two initiatives by the SBI bank under this account. There no age restriction for the account opened under PehlaKadam, but for PheliUdaan, only minors above 10 years can apply. These accounts are jointly opened by the minors with their parents. Features like cheque book, net banking, and mobile are available.
e. Savings Plus Account
The account can be opened only by individuals with valid KYC documents. The interest rate associated with this account is 6.90% per annum w.e.f 19th October 2020. Features like ATM cards, mobile banking, SMS alerts, 25 free cheque leaves, and net banking are available.
f. Salary accounts
The salary accounts are customized to suit the needs of every individual. The employees from various government sectors can open the account. Police forces, Coast Guard, Defense Forces, Indian Railways, State Government and Central Government, are some of the examples.
g. Current Accounts
The interest rate offered in this account is 6.90% per annum. Individuals with valid KYC can open this account independently or together with another applicant as a joint account. Many other benefits come only by opening this account.
2. Investments And Deposits
a. Fixed Deposits
These deposits offer an interest rate of 5.30% for a lock-in period of 3 to 5 years. The interest for deposits locked in for more than 5 years but less than 10 years is 5.40% per annum. The returns of these deposits are guaranteed with the payout of the account holders’ choice.
b. Recurring Deposits
The interest rate on these deposits is 5.30% per annum for a period of 3 to 5 years. For durations between 5 to less than 10 years, the interest rate is 5.40% per annum. These deposits enable the account holders to fortify their savings through regular monthly investments.
c. Flexi Deposit Schemes
The Flexi deposits are similar to recurring deposits. But in this deposit scheme, the monthly installments are fixed rather than variable. The deposits also offer a decent interest rate. It’s a great deal for every individual, including minors.
d. Annuity Deposit Scheme
These deposits are one-time lump sum payments that are disbursed in Equated Monthly Installments (EMIs). The restriction for minimum payment is set to Rs.25,000. After the maturity, the principal amount along with interest is returned to the depositor. The rate of interest is the same as the other deposits.
e. Multi Option Deposit (MOD)
The Multi Option Deposit Scheme is liquid term deposits. These are necessarily linked to the savings account or the current account of the applicant. The minimum and the maximum period of deposit is one and five years. The MOD account can be easily created online or in any of the bank branches.
f. Reinvestment Plan
A reinvestment plan is an investment tool similar to the term deposits. But these offer a higher interest rate of 6.90% per annum, and the returns are paid out at the maturity of the deposits. The minimum and maximum periods of deposits are six months and ten months.
g. National Pension Scheme
This scheme is an initiative by the Government of India. The existing interest rate with effect from 19th October is 6.90% per annum. Any individual belonging to the age ranging from 18 to 65 years can invest in this scheme.
h. Public Provident Fund
The PPF is also a good investment entity that offers an interest of 6.90% per annum. These provide guaranteed returns attached with income tax benefits. The timely withdrawals and loans are sanctioned provided some age and minimum account balance criteria are met.
i. Senior Citizen Savings Scheme
This scheme also has a modest interest rate of 6.90% per annum on the deposits. It is available only to senior citizens above 60 years of age. Including those who have retired on superannuation at the age of 55. The minimum amount for opening the amount is not less than a thousand rupees or any multiples of thousand. The scheme can further be extended to an additional three years upon the depositors’ request.
a. Personal loan
The personal loans by SBI are available for salaried customers with and without a salary account with SBI, pensioners, and other individuals. These loans are offered at interest rates starting at 6.90% per annum. The loan processing fees for a personal loan is low. Additionally, there are no hidden charges linked with these loans.
b. Home loan
The SBI home loans are available with low-interest rates. The SBI also provides an overdraft facility so that the excess funds are utilized efficiently. The prepayment penalties are charged on home loans.
c. Auto loan
There are several car loans provided by the SBI bank. These are for new cars, preowned cars, existing home loan borrowers, two-wheelers, existing term deposit customers, and so on. The interest rates offered on these loans are now almost 7.50% per annum, and the EMIs are affordable. The tenure for repayment is flexible.
d. Educational loan
The SBI provides various educational loans to facilitate the educational goals of every student. These loans are offered an interest of 9.30% per annum. These loans can be availed by students pursuing their degrees in IITs, IIMs, NITs abroad, learning new skills, and so on.
e. Loan against property
These loans are available at an interest rate of 6.90% per annum. These loans are sanctioned by using the personal properties of the borrower as collateral. Anyone owning a property can avail of the benefits under this loan scheme.
f. Gold loan
The gold loans are available with an interest of 7.50% per annum. The minimum loan amount sanctioned upon pledging any gold ornaments or coins to the bank is Rs.20,000. This amount can exceed Rs.50 lakh at a time. There are processing fees associated with gold loans.
a. Debit card
Various customized debit cards are designed to meet every financial need of the individuals. These cards promote cashless payments, contactless payments, shopping in over 30 million outlets. Some cards provide access to airport lounges, complimentary insurance, and international transactions.
b. Business debit card
The business debit card is an ideal entity for modern businesses. It is perfect for business travels, business utility bills, and purchasing business essentials. The withdrawals are possible at any ATMs, and cash can be deposited from any Deposit machines.
c. Prepaid card
The prepaid card is a multipurpose card that serves various purposes. They can be gifted to employees or relatives on special occasions. They also facilitate transactions, ensure safe foreign travel, and so on.
5. Digital Banking
a. Internet banking
Through this facility, the customers can access their accounts online. They can make bank to bank transfers, check their balance, and earn reward points through such transactions.
b. Phone banking
These are registered services that are available only for users who have registered with the bank. Once the phone number is linked to the account, several services can be provided by using the phone without any internet. Cheque book issue, funds transfer, account-related information, and open other SBI account are achievable over the phone.
This payment gateway promotes quick and easy electronic funds transfer. It is a great medium that facilitates connectivity between the buyer and the seller through electronic payment channels. These include debit cards, credit cards, UPI, NEFT, and internet banking.
The Yono was launched on 16th March 2019. It is a mobile app that enables the customers to fulfill all the banking services through the ease of their home. The customers need to login to the platform and create a PIN for themselves by using the cash feature.
Services Provided To NRIs
Under the NRI section, the products offered are as follows.
a. Non-Residential External
The NRE accounts are opened by NRIs and other foreign nationals residing in India. An NRI can open some different accounts and deposits under this feature. The funds are remitted to India and easily converted to Indian rupees. The interest generated on the NRE account is free from the constraints of income tax.
b. NRE Salary Account
These accounts can be opened by Indian employees who are temporarily transferred overseas and vice-versa. This means foreign employees who are transferred for work in India can also open this account.
c. NRO Account
The NRO accounts are used to deposit the current income of the NRI in rupees. These accounts are for those NRIs who have settled in India. There are various categories of accounts and deposits wherein the Indian rupees can be deposited. The account can also be opened with Indian residents in “former or survivor” mode.
d. NRE ‘SUKOON’ Current Account
These accounts are viable options for NRIs who do not intend to earn interest on their deposits.
e. NRI Family card
This is a prepaid card dedicated to the NRIs and their family. The remittances can be easily received by regularly recharging the amount in the card through the NRE or NRO account holder. The card facilitates net banking, online payment, and cash withdrawals through ATMs.
The SBI bank provides several loans to the NRIs. These include home, car, against deposits, and overdraft against deposits. These loans are sanctioned at low-interest rates and fair processing fees. There are no hidden charges, and the repayment process is flexible.
The SBI has various investment tools for the NRIs. These include mutual funds, insurance, a national pension scheme for senior citizens, and a portfolio investment scheme. The mutual funds are offered in three categories. Money Market investments are short term investment in government bond papers. The Debit based investment on government securities and institutional debt papers. The Equity-based investment in the shares market which are risky. The insurance policies are an essential entity for the primary earning member and his family. These policies provide financial security when the monthly income comes to a standstill.
Services Under Agriculture and Rural section
Under the Agriculture and Rural section, the products offered are as follows.
1. Agriculture Banking
a. Crop loan
Any Indian farmer can approach the SBI bank for this loan. These loans cover the entire crop production expenses. For loans above Rs.3 lakh, there is an interest subsidy of 2% per annum. Further, if the borrowers repay the loan amount promptly then, an additional subsidy of 3% p.a. is provided.
b. Kisan Credit Card
The card is a great boon to every Indian farmer. The card balance earns regular interest in the KCC account. The Kisan Credit Card enables the farmers to make withdrawals from the ATMs to purchase the farming material.
c. Multi-Purpose Gold loan
Any individual involved in the agricultural sector can avail of this loan. It is easy to apply, hassle-free, and there are no hidden charges.
Besides, these are other loans designed to meet every domain’s requirement in the agricultural sector. This includes Farm Mechanization loan, Tractor loan, Combine Harvester loan, Drip Irrigation loan, Dairy loan, Poultry loan, and Fisheries loan.