Minimum Balance Rules Of Key Lenders Explained Here
Regular savings bank accounts require customers to maintain a certain average monthly balance or AMB. AMB is the minimum average of deposits required by the bank customers in their regular savings bank accounts. Public and private sector lenders such as State Bank of India (SBI), Punjab National Bank (PNB), HDFC Bank and ICICI Bank have fixed certain rules for their customers with respect to average monthly balance. Banks often charge a penalty from their customers who fail to meet the average monthly balance requirements.
Here's a comparison of the average monthly balance in SBI, Punjab National Bank (PNB), ICICI Bank and HDFC Bank :
State Bank of India (SBI)
Customers having a regular savings bank account in SBI branches located in metro and urban areas are required to maintain a monthly average balance of Rs. 3,000, according to the bank's website - sbi.co.in. Customers with SBI savings accounts in semi-urban and rural branches are required to maintain a minimum average balance of Rs. 2,000 and Rs. 1,000, respectively.
| Branch type | Average monthly balance |
|---|---|
| Metro | Rs. 3,000 |
| Urban | Rs. 3,000 |
| Semi-urban | Rs. 2,000 |
| Rural | Rs. 1,000 |
| (Source: sbi.co.in) | |
Punjab National Bank
Customers having a regular savings bank account in Punjab National Bank branches located in metro, urban, semi-urban areas are required to maintain a minimum quarterly average balance of Rs. 2,000, according to the state-run bank's website - pnbindia.in. Customers with savings accounts in rural branches are required to maintain a minimum balance Rs. 1,000.
| Branch Type | Minimum Quarterly Average Balance |
|---|---|
| Rural | Rs 1,000 |
| Semi- Urban | Rs. 2,000 |
| Urban | Rs. 2,000 |
| Metropolitan | Rs. 2,000 |
| (Source: pnbindia.in) | |
ICICI Bank
Customers having a regular savings account in ICICI Bank branches located in metro and urban areas need to maintain an average monthly balance of Rs. 10,000, according to the bank's website - icicibank.com. The average monthly balance required in semi-urban, rural and gramin locations is Rs. 5,000, Rs. 2,000 and Rs. 1,000 respectively.
| Branch type | Average monthly balance |
|---|---|
| Metro | Rs. 10,000 |
| Urban | Rs. 10,000 |
| Semi-urban | Rs. 5,000 |
| Rural | Rs. 2,000 |
| Gramin | Rs.1,000 |
| (Source: icicibank.com) | |
HDFC Bank
Customers having a regular savings account in HDFC Bank branches located in metro and urban areas are required to maintain an average monthly balance of Rs. 10,000, according to the private sector bank's website - hdfcbank.com. In semi-urban branches, the regular savings account holders are required to maintain an average balance of Rs. 5,000 every month. In rural branches, the customers are required to either maintain an average quarterly balance (AQB) of Rs. 2,500 or set up a fixed deposit of Rs. 10,000 for a maturity period of a minimum one year and one day.
| Branch type | Average monthly balance |
|---|---|
| Metro | Rs. 10,000 |
| Urban | Rs. 10,000 |
| Semi-urban | Rs. 5,000 |
| Rural | Rs. 2,500 |
| (Source: hdfcbank.com) | |
However, there are certain accounts where AMB rules are not applicable. These accounts are called zero balance savings accounts.
