Whether you are a serving soldier or a retired/ ex-serviceman, your salary or pension account with SBI can unlock a host of exclusive benefits — but only if you are aware of them.
The Defence Salary Package (DSP) Account, offered by the State Bank of India (SBI) — the country’s largest public sector bank — is specially designed to cater to the unique needs of the armed forces community. This account is available to all ranks and is applicable even after retirement, ensuring continuity of benefits throughout your life.
Unfortunately, due to a lack of proper awareness, many defence personnel fail to take full advantage of the facilities that come with this account. From zero-balance requirements and substantial insurance cover to loan concessions, free banking services, and exclusive financial advisory support, the DSP account provides a comprehensive financial ecosystem tailored for both serving personnel and veterans of the Indian Army, Navy, Air Force, and paramilitary forces.
It’s not just a bank account — it’s a complete financial support system built in recognition of your service to the nation.
Here is a complete guide to all the features and advantages of the SBI DSP Account:
✅ Key Features & Financial Benefits
- Lifetime Zero Balance Account
- Maintain a zero-balance account even after retirement without penalties.
- Higher Interest through Auto Sweep Facility
- Enjoy better returns with the automatic transfer of surplus funds from your savings account to fixed deposits.
- Free Use of CSD Canteen POS
- No annual maintenance charges for transactions at CSD Canteen Point-of-Sale terminals.
- Purchase Protection
- Get coverage of ₹50,000/- and enjoy unlimited free transactions across all bank ATMs.
- Free ATM Cards
- Two free ATM-debit cards for self and family with combined loss coverage.
- Free Core Banking Services
- No charges on cash deposits or withdrawals at non-home branches.
- Free Financial Advisory Services
- Access to financial advisors across all SBI branches.
🛡️ Insurance & Risk Coverage
- Personal Accident Insurance (Death)
- ₹30 Lakhs cover on salary account without any conditions, applicable to all ranks.
- Air Accidental Insurance
- ₹1 Crore coverage for death by air accident (effective from 04.01.2019).
- Disability Insurance
- ₹30 Lakhs for permanent disability and ₹10 Lakhs for partial disability due to accident (effective from 04.01.2019).
- Add-On Covers
- ₹2 Lakhs for Girl Child Education
- ₹2 Lakhs for Marriage assistance
💼 Banking & Loan Services
- Free Services
- RTGS / NEFT, demand drafts, multicity cheques, internet banking are all free of cost.
- Overdraft Facility
- Avail overdrafts from ₹40,000/- to ₹2 Lakhs depending on the salary account variant.
- Locker Charge Concessions
- Reduced locker rent for DSP account holders.
- Instant Credit for Outstation Cheques
- Get immediate credit up to ₹20,000/- for outstation cheque deposits.
🏠 Loan-Related Benefits
Home Loan Margin & Processing Concessions
- 100% waiver on processing charges for:
- Home loans
- Car loans
- Xpress Credit personal loans
- Shaurya Home Loan Scheme
- Tailored for defence personnel with loan repayment allowed up to 75 years of age.
- Special Home Loan for Nepali Gorkha Soldiers
- In collaboration with Nepal SBI Bank, providing home loans to Gorkha soldiers.
- Educational Loan Under ‘Scholar Scheme’
- Up to ₹20 Lakhs without collateral for select AWES institutions
- Interest rate concessions available
🎖️ Who is Eligible?
The DSP account is available to all serving and retired personnel of:
- Indian Army
- Indian Navy
- Indian Air Force
- Paramilitary Forces (with some conditions)
- Nepali Gorkha Soldiers (for select benefits)
Conclusion
The SBI Defence Salary Package (DSP) account is not just a salary account—it is a comprehensive financial product designed with the unique needs of defence personnel in mind. From insurance covers and zero-balance maintenance to attractive loan offers and exclusive banking services, the DSP account ensures peace of mind both during service and post-retirement.
Whether you’re a young recruit or a retired veteran, opting for an SBI DSP account is a financially wise decision to secure your future and ease day-to-day banking.
