SBI DSP account full form
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SBI DSP account benefits explained

In today's fast-paced world, financial stability and security are paramount, especially for those serving in the armed forces. The DSP account, whose full form is Defence Salary Package, encompasses a range of tailored financial solutions and exclusive benefits for military personnel. In this article, we delve into the various benefits and features of the SBI DSP account, shedding light on why it stands as a beacon of support and reliability for our esteemed defense personnel.

After the implementation of the Defense Salary Package, the entire salary of the army personnel is credited in their direct account. A total of 11 public and private banks offer the facility of Defense Salary Package but SBI Bank gives more benefits to the Defense Person in the DSP account. This is the reason that most of the DSP accounts are also in SBI Bank. DSP accounts of other banks do not have the same facilities as SBI Bank. 

SBI DSP accounts

  • SBI Gold DSP Account 

The SBI Gold DSP account caters specifically to Junior Commissioned Officers (JCOs) and Other Ranks (ORs) in the Indian Army. Designed to meet their unique financial needs, it offers exclusive benefits such as special overdraft facilities, preferential loan interest rates, waivers on service charges, personalized banking services, and comprehensive insurance coverage for the account holder and their family members. SBI Gold DSP account benefits are covered in details in the next part of this article.

  • Diamond DSP Account 

The Diamond DSP Account is tailored for officers holding the ranks of Lieutenant, Captain, and Major in the armed forces. Offering a suite of premium banking services, this account is designed to match the unique financial needs and aspirations of these esteemed officers. With features such as higher transaction limits, exclusive loan schemes at preferential interest rates, complimentary multi-city chequebooks, and priority services at branches, the Diamond DSP Account provides a seamless and elevated banking experience.

  • Platinum DSP Account

The Platinum DSP Account caters to officers holding higher ranks such as Lt. Colonel, Colonel, Brigadier, Major General, Lt. General, and General in the armed forces, offering an unparalleled banking experience.

SBI DSP Account benefits

SBI DSP account benefits 

  1. You can keep zero balance in Defense Salary Package Account, that is, you do not have to pay a penalty for not maintaining the minimum balance like other accounts. However, State Bank of India has removed the minimum balance obligation from all savings accounts with effect from 18 August 2020. There is no minimum balance requirement in any savings account of SBI Bank.
  2. In DSP account, you can do unlimited transactions from your ATM and Debit card. You do not have to pay any charges for using the ATM card excessively.
  3. Defense Salary Package Account has the facility of Auto MOD, whenever there is more than a limit in the account, the money automatically goes to e-MOD (Multi Option Deposit) in which the interest rate is high.
  4. SBI Bank also provides overdraft facility to DSP account holders. You can withdraw your two months net salary (which is credited every month in the account) in advance, but some account holders have this facility, you can contact your account branch for overdraft.
  5. If you take personal loan, car loan, home loan or education loan from Defense Salary Package Account, then there is no loan processing fee. SBI does not charge bank processing fee from the DSP account holder.
  6. State Bank of India provides free multi city check book, draft, online NEFT, RTGS, free SMS facility for defense salary package account.
  7. Under the Defense Salary Package account, the Gold and Diamond account holders get 15% discount in fees and Platinum account holders get 25% discount on using SBI bank account.
  8. Additional debit card facility is also available for joint account holders.
  9. State Bank of India also offers Shaurya Home Loan facility to DSP account holders with zero processing fees, no prepayment charges, low interest rates.
  10. SBI Bank gives a personal accident insurance (death) cover of Rs 50 lakh to the DSP account holder.
  11. The DSP also provides air accident insurance (death) cover of Rs 1 crore to the account holder.
  12. State Bank of India also provides a cover of Rs 50 lakh to the DSP account holder on permanent or total disability.
  13. 50 Lakhs under the Partial Disability Cover Defense Salary Package.
  14. There is a provision of Rs 5 lakh for higher education (graduation) of a child whose age is 18  years to 25 years.
  15. A provision of 5 lakhs has also been made for the marriage of a girl from 18 years to 25 years.
  16. If the DSP account holder is martyred during a war with a terrorist, Naxal or any country, then in addition to the accidental cover, an insurance cover of Rs 10 lakh will also be given.

For your information, let us tell you that there are certain terms and conditions in the benefits of numbers 10 to 15, which are very necessary to fulfill. We will cover all these benefits one by one in the post so that you understand these benefits well. Ex-servicemen can also open a DSP account in which they do not get the facility of SBI Express personal loan, overdraft facility and insurance. You can see the details of the benefits of ex-servicemen in SBI Defense Salary Packages account here.

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