Basic Savings Bank Deposit Account (BSBD Account) is to encourage poor sections of society to start saving without feeling the burden of charges or fees. BSBD Account can be opened by any individual if s/he has valid KYC documents. KYC or know your customer helps banks verify their customers.
Recommended Read: What is KYC? What are KYC documents? Why is it required?
What is Basic Savings Bank Deposit Account (BSBD Account)?
You don’t have to maintain any minimum balance in a basic savings bank deposit account. BSBD account offers interest rates similar to normal savings bank accounts to encourage poor section of society for savings.
The banks which offer Basic Savings Bank Deposit Account are
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- HDFC Bank
- ICICI Bank
- Axis Bank
How to open a Basic Savings Bank Deposit Account (BSBD Account)?
You can open Basic Savings Bank Deposit Account (BSBD Account) singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility. Account opening procedure is same as a normal saving account.
Recommended Read: How to open a Saving Bank Account in India?
Withdrawal from Basic Savings Bank Deposit Account (BSBD Account):
You can withdraw from BSBD accounts using withdrawal forms at branches or through ATMs. You get a basic RuPayATM-cum-debit card.
However, you can withdraw money from your BSBD Account only four times a month. This includes all modes of withdrawal such as
- ATM withdrawals (including all bank ATMs),
- Cash withdrawals from branch
- Transactions through other modes including RTGS/NEFT/clearing
- Internet debits
- Standing instructions
- EMI, etc.
Beyond four withdrawals or debits, you would not be able to withdraw during the month.
Interest Rates on BSBD Accounts:
Interest rates on BSBD Accounts are the same as on normal savings bank accounts. There is no difference in interest rates.
For saving deposits balance up to Rs. 1 crore, you get 3.50% per annum. And, for saving deposits balance above Rs. 1 crore, bank will pay interest at the rate of 4% per annum.
Service Charges of Basic Savings Deposit Account:
- There is no charge for a basic RuPay ATM-cum-debit card.
- Annual maintenance is free of cost. You will not have to pay any penalty or charges for not maintaining average monthly balance.
- Receipt/credit of money through electronic payment channels like NEFT/RTGS is free.
- Deposit/collection of cheques drawn by central/state government will be free.
- No charge is levied on activation of inoperative accounts.
- You can close your account for free.
Conversion of Normal Savings Account into Basic Savings Bank Deposit Account:
Now, you can also convert your normal savings account into a basic savings bank deposit account for free. So, if you want a free & Zero balance account, you have a choice. But, keep in mind that there are certain limitations as well with BSBD Account.