Minimum Balance Requirement for Savings Account
Regular savings account holders are required to keep a minimum average balance on a monthly basis. This average monthly balance (AMB) limit is determined by the customer's location (rural, urban, semi-urban, and metro) as well as the various types of savings accounts that the banks provide.
If you don't maintain the required minimum balance, you will be liable to pay your bank a non-maintenance fee. The non-maintenance fees may differ based on branch location and other factors.
Minimum Balance Requirements for Savings Accounts Offered by Top Banks:
Here are the minimum balance requirements for savings accounts offered by the top banks in India:
Bank | Zero-Balance Account Availability | Minimum Balance Requirements |
State Bank of India | All savings accounts are zero-balance accounts | N/A |
Union Bank of India | Available | Rural: With Cheque Book - Rs.250 Without Cheque Book - Rs.100 Semi-Urban: With Cheque Book - Rs.500 Without Cheque Book - Rs.250 Urban/Metro: With Cheque Book - Rs.1,000 Without Cheque Book - Rs.500 |
HDFC Bank | Not available | Rural: Rs.2,500 Semi-Urban: Rs.5,000 Urban/Metro: Rs.10,000 |
ICICI Bank | Not available | Rural: Rs.1,000 (gramin branches) or Rs.2,000 (rural branches) Semi-Urban: Rs.5,000 Urban/Metro: Rs.10,000 |
Axis Bank | Not available | Rural: Rs.2,500 Semi-Urban: Rs.5,000 Urban/Metro: Rs.12,000 |
Bank of Baroda | Not available | Rural: Rs.500 Semi-Urban: Rs.1,000 Urban/Metro: Rs.2,000 |
Bank of Baroda | Not available | Rural: Rs.500 Semi-Urban: Rs.1,000 Urban/Metro: Rs.2,000 |
IDFC First Bank | Not available | Rs.10,000 or Rs.25,000, depending on choice |
Bank of India | Not available | Rural: Rs.500 for Savings Bank Ordinary Account Rs.5,000 for BOI Star Mahila SB Account Rs.10,000 for BOI Star Senior Citizen SB Account |
Kotak Mahindra | Available | Rural/Semi-Urban/Urban/Metro: Rs.2,500 for Sankalp Savings Account Rs.5,000 for Nova Savings Account Rs.10,000 for Edge Savings Account and Classic Savings Account Rs.20,000 for EveryDay Savings Account and Pro Savings Account Rs.50,000 for Ace Savings Account |
RBL Bank | Available | Rural/Semi-Urban/Urban/Metro: Rs.5,000 for Digital Savings Account and Senior’s First Savings Account Rs.10,000 for Prime Edge Savings Account and Woman’s First Savings Account Rs.25,000 for Advantage Savings Account Rs.50,000 for RBL Rise Savings Account |
Non-Maintenance Charges for Top Banks:
The table below mentions the non-maintenance charges you will have to pay if you fail to maintain the minimum balance requirement for your savings account:
Savings Account | Non-Maintenance Fee |
SBI Savings Plus Account | Rural areas: Up to Rs.10 Semi-urban areas: Up to Rs.12 Urban and metro areas: Up to Rs.15 |
HDFC Bank Regular Savings Account | Rural areas: Up to Rs.450 Semi-urban areas: Up to Rs.300 Urban and metro areas: Up to Rs.600 |
IndusInd Bank Privilege Savings Account | 5% of the total shortfall (subject to a monthly maximum of Rs.500 and a minimum of Rs.100) |
YES Bank Savings Advantage Account | Up to Rs.500 per month |
ICICI Bank Regular Savings Account | Gramin areas: 5% of the required AMB shortfall Rural/Semi-urban/Urban/Metro areas: Rs.100 plus 5% of the required AMB shortfall |
Punjab National Bank Savings Deposit (General) Account | Depending on the location, category, and deficit in the quarterly average balance, the price ranges from Rs.25 to Rs.250 |
Kotak Mahindra Bank Edge Savings Account | Up to Rs.500 |
Savings Accounts without Minimum Balance Requirement:
Banks provide a number of savings accounts where there are no minimum balance requirements. Therefore, customers are not obligated to keep money in the account at all times. The most popular savings accounts without a minimum balance requirement are listed below:
- Zero Balance Savings Account
- Pradhan Mantri Jan Dhan Yojana Accounts (PMJDY)/Basic Savings Bank Deposit Accounts (BSBDA)
FAQs on Minimum Balance Requirement for Savings Account
- What happens if I do not maintain the minimum balance in my savings account?
If you do not maintain the minimum balance in your savings account, you will have to pay a non-maintenance fee. The fees typically differ from one bank to another and one branch to another.
- Can I have zero balance in my savings account?
Yes, Zero-balance Savings Accounts are a specific category of Savings Accounts that do not require a minimum balance.
- What is the average minimum balance?
The average minimum balance is the amount that your account must typically have at any given time during the month. Your savings account must always have the minimum balance requirement mandated by your bank.
- Is it possible to make withdrawals below the minimum balance?
Yes, withdrawing the entire balance at any time and keeping it at zero is allowed for savings banks held at private sector banks.
- What is the difference between a public bank and a private bank savings account?
The services provided by public and private sector banks operate similarly except for some differences. The average minimum balance for savings accounts with public banks is lower than that of private banks.
- How is the average monthly balance calculated?
The sum of the daily closing credit balances for each day of the month is divided by the number of days in the month to determine the average monthly balance. Non-maintenance fees are imposed at the start of the following month if the average falls short of the amount required.
- When will the interest from my savings account be credited to my account?
Every six months, the interest on the balance of your savings account is credited to your account. However, the interest is either computed on a monthly basis or based on an average daily balance.
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