Regular savings accounts in banks require account holders to maintain a certain minimum average balance (MAB) every month. Leading banks such as State Bank of India (SBI), Punjab National Bank (PNB), HDFC Bank and ICICI Bank have fixed their monthly/quarterly average balance requirements according to the location of a customer's account in urban, metro, semi-urban and rural areas. Customers who fail to maintain the monthly average balance in their savings account, have to pay a penalty to the bank, which varies according to factors such as branch location.
Here's a comparison of the minimum average balance in SBI, Punjab National Bank (PNB), HDFC Bank and ICICI 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, said the country's largest lender on its 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 (PNB)
Customers having a regular savings bank account in PNB located in metro, urban, semi-urban areas are required to maintain a minimum quarterly average balance of Rs. 2,000, said the lender on its website, pnbindia.in. Customers with savings accounts in rural branches are required to maintain a minimum balance Rs. 1,000.
| Branch Type | Minimum Qly. Average Balance |
|---|---|
| Rural | Rs.1000/- |
| Semi- Urban | Rs.2000/- |
| Urban | Rs.2000/- |
| Metropolitan | Rs.2000/- |
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 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) | |
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 |
However, banks also provide several savings accounts which do not require the customer to maintain any particular minimum balance every month.
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