Banks require all savings account customers to maintain a minimum average balance in their accounts.
In addition, penalties may apply if savings account and balance requirements are not met. Also, there are many types of savings accounts, each with unique functionality that varies depending on the type of account.
Most large public and private sector banks charge a fee for failing to maintain a monthly average balance in customers’ savings accounts.
Let’s see what is the minimum balance for SBI, HDFC, ICICI and Punjab National Bank (PNB) savings accounts.
State Bank of India
Earlier, SBI account holders were required to maintain a monthly balance of Rs 3,000, Rs 2,000 or Rs 1,000. Customers not complying with AMB requirements were fined Rs 5 to Rs 15 per month.
ICICI Bank
In regular savings accounts of the bank, the minimum average monthly deposit is Rs 10,000 in metro areas, Rs 5,000 in semi-urban areas and Rs 2,000 in rural areas.
Failure to maintain average balance will result in 6% of the shortfall or Rs. 500 will be fined.
HDFC Bank
In metros and major cities, customers with HDFC Bank savings accounts are expected to maintain an average monthly balance of Rs 10,000.
In semi-urban areas the minimum monthly ceiling is Rs 5,000. Savings account customers in rural areas should maintain an average balance of Rs 2,500 on a quarterly basis.
Punjab National Bank
Customers holding savings accounts at Punjab National Bank branches in urban and suburban areas are required to maintain a quarterly balance of Rs.20,000.
The minimum quarterly average balance in semi-urban and rural areas is Rs 1,000 and Rs 500 respectively.
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