Minimum Balance in Account: In today’s fast-paced world, a bank account has become a necessity for almost everyone. Be it a savings account or a current account, it is your financial hub. And if you have a savings account, you will be familiar with the benefits of earning interest on deposits and the security your bank provides.
However, one essential aspect that often goes along with bank accounts is maintaining a minimum balance. Irrespective of which bank you are associated with, it is important to maintain a certain minimum balance in your account. Falling below this balance may result in a penalty.
What is Minimum Balance in the Account
Every bank defines the minimum balance requirement for its savings accounts, thereby obliging the account holders to maintain a certain amount to keep their accounts active. Failure to do so may result in additional charges. Remember, the specific amount varies from bank to bank, so be sure to check your account details.
What is a zero-balance account?
But guess what? The banking industry is evolving, and with that evolution comes the introduction of zero-balance accounts. Moving away from tradition, many banks have started this facility. Zero balance accounts free you from the obligation of maintaining the minimum balance. They allow you to keep your account running even if your balance drops to zero.
Speaking of banks, let’s look at some well-known banks and find out their minimum balance requirements:
SBI: Embracing Change
State Bank of India (SBI) decided to do away with the concept of average monthly balance in March 2020. However, earlier, SBI required customers to maintain a minimum balance of ₹3000, ₹2000, or ₹1000 depending on the branch location.
HDFC: Miscellaneous Requirements
In HDFC Bank urban branches, you need to maintain an average monthly balance of ₹10,000 or hold an FD of ₹1 lakh for 1 year and 1 day. Semi-urban branches ask for FDs of ₹5,000 or ₹50,000. In rural branches, the minimum balance is ₹2500 and the corresponding FD is ₹25,000.
PNB: Zone-wise tailoring
Punjab National Bank (PNB) sets different average monthly balance requirements depending on the branch type. For rural branches, it is ₹1000, for semi-urban branches it is ₹2000, for urban branches it is ₹5000, and for metro city branches it is ₹10,000.
In the ever-changing landscape of personal finance, it’s important to stay informed about your bank’s requirements. Zero balance accounts can free you from the obligation of minimum balance. You can join our WhatsApp Group to stay updated with such posts. link is given below.