We will start with clarification on general misconception, which is “Minimum account balance.” The term used by bank is “Average monthly balance.”
Banks calculate the average monthly balance by adding together daily closing account balance throughout the month and dividing the sum of the daily account balances by the number of days in the month.
The average monthly balance depends as per branch categorization, i.e., Metro, Urban and Rural. Please find a snippet in context to average monthly balance and charges for not maintaining it.
If you’re banking with SBI (State Bank of India), here’s the deal on account balances:
- Minimum Balance Requirements. For regular savings accounts, you gotta keep a minimum balance, which can range from ₹3,000 to ₹5,000, depending on where your account is located. If it’s a metro or urban area, it’s usually ₹5,000. If it’s rural, it’s a bit less.
- Penalties: If you dip below the minimum balance, SBI slaps a penalty! For metro/urban areas, it could be up to ₹50 plus tax per month. For rural areas, the fee is usually around ₹20-30 plus tax.
So, basically, just make sure to keep that balance steady, and you’ll be good to go.
