The Types of Accounts in SBI

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The State Bank of India is the largest banking and financial services provider in India. It is a state-owned company headquartered in Mumbai. In 1955, the government nationalized the Imperial Bank of India and renamed it the State Bank of India. It has 16,000 branches as of 2011.

Checking Account

A checking account is non-interest bearing account with no limits on the number of withdrawals. No minimum amount is required for opening an account. However, account holders have to maintain a minimum balance in their accounts to avoid a monthly service charge. Minimum balances for consumers in the United States is $500; for businesses and associations it is $2,500. The State Bank of India also provides a basic checking account to New York residents who do not have a transaction account with SBI. The minimum balance for opening a basic checking account is $25.

Money Market Deposit Account

Under this account, the bank provides a certain rate of interest on the deposits, but at the same time imposes a limits on withdrawals. No minimum deposit is required for opening such accounts. Customers have to maintain a minimum balance to avoid monthly service charges. The minimum balance for individuals in the U.S. is $2,500. For those outside the U.S. the minimum is $ 5,000; it's $5,000 for businesses outside the U.S.

Certificates of Deposit

A certificate of deposit account provides a fixed rate of interest over a specified period of time on one-time deposits. The customers are not allowed to withdraw or deposit money in the account until the maturity date. The bank can allow withdrawal of funds before maturity by deducting a penalty amount.

Additional Information

Under a checking account and a money market deposit account, if there is no transaction in a one-year period by the customer, the account will become inactive. The account will be considered dormant if no transaction is done for three years and will be considered an abandoned property under New York State law if no transaction done for consecutive five years.

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