In this post, we are going to see (mainly) charges for the three mentioned things, closing an account in State Bank of India (SBI), Transferring an account from one branch to another and what happens if you transact over a limited amount of times in a given period.
First, Closing an account. We’ve discussed this before. You just need to visit your branch and submit a letter to close your savings or current account. If there are no dues, your account will be closed immediately. However, I did not mentioned about the charges incurred to close an account. Here are the charges involved:
- Closing an account with in 14 days of opening: No charges
- Closing an account which is between 2 weeks and 6 months old: Rs.225 (savings) or Rs.1019 (current)
- Closing an account after 6 months: Rs.153 (savings) or Rs.509 (current).
Note: These are the charges that apply when you wish to close your account wantedly. In cases where accounts lie dormant for certain number of months (with no transactions or occasional interest credits), the bank will automatically close these accounts.
Now, transferring an account. If you are not aware, yes you can transfer your account to a different branch with in the same bank; SBI in this case (there is a proposal to allow transfers among different banks in the future). This is especially useful when you shift your residence; instead of maintaining 2 accounts, one at old place and another at new place, you can transfer the account from old place to an SBI branch near your new place. The process is cumbersome but on your part you just need to approach your old branch once and submit a transfer form. The branch charges a one time fee of Rs.102.
Some details, such as your A/C number will remain the same while some others, such as cheque books will be freshly issued by the new branch.
Lastly, Excess Debit entry charges for a savings account. This happens very rarely, but you’ll be surprised when it does if you didn’t know there’s a provision for this. Every transaction that takes place in your account will get its own entry in banks’ record books. If money is added, it’s a credit entry and likewise if money is debited, it’s a debit entry. Basically, a savings bank account is meant to be a place to save your earnings. It shouldn’t involve frequent or heavy transactions. If you use it for business purpose, you should instead open a current account.
For Savings Bank account in SBI, over a 6 month period, there should not be more than 30 debit entries. For every excess entry, Rs.5 will be charged (debited from your balance). 30 seems to be very less and that too for a 6 month period; but fret not, as this doesn’t include debits from alternate channels. Alternate channels include Internet banking, mobile banking and other banks* ATM usage. So its fine to have any number of debits if they are coming from Internet Banking etc.
*Other banks = You will not be charged any extra as debit entry charges when you use other bank ATM’s as there is already a limit of 5 transactions a month. But when you withdraw money from State Bank group ATM’s, it counts in that 30 number limit. So for example if you withdraw money on more than 30 occasions in a 6 month period from a State Bank ATM, you will be charged Rs.5 for every excess withdrawal over the 30 limit.
Note: All the above charges may change in the future.