A bank’s savings account offers the account holder a high degree of liquidity, financial security, and a fixed rate of interest. All holders of savings accounts are required to maintain a minimum average balance in their accounts. Additionally, there will be a penalty if the same is not maintained depending on the required savings account balance amount.
What is the minimum balance requirement for a savings account?
Banks have a particular minimum balance limit that an account owner must maintain; to save themselves from paying the charges levied by the bank. The minimum balance limit varies with banks and will depend on the location of the bank.
What is zero balance savings account?
Due to rising demand as opposed to the traditional practise of holding thousands in the bank account to avoid fees, many banks now provide zero balance savings accounts. According to the Bank of Baroda website, “a zero balance savings account is a 0 balance account where the account holder is free to operate the account without maintaining a minimum balance.”However, there are limitations on zero balance account
Such accounts usually has monthly limits on free transactions and withdrawals. If your total transaction value or number of withdrawals exceeds this limit, the bank may charge you an extra fee based on the manner of transaction.
Here is a comparison of the minimum balance requirements of State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank, ICICI Bank and HDFC Bank.
SBI minimum balance In March 2020, SBI decided to remove the Average Monthly Balance (AMB) requirement from its basic savings accounts.
Before, SBI account holders had to keep an average monthly balance of Rs 3,000, Rs 2,000, or Rs 1,000 in their accounts, depending on whether their branch was in a metro area, a semi-urban area, or a rural area…..Read More
Source By: economictimes
