Regular savings bank accounts require customers to maintain a certain average monthly balance (AMB) in order to avoid penalty charges. Top banks such as State Bank of India (SBI), HDFC Bank and ICICI Bank have fixed their average monthly balance requirements according to the location of a customer's account in urban, metro, semi-urban and rural areas. The amount of penalty in case of non-compliance with the minimum balance rules depends on factors such as the degree of shortfall and branch location.
Here's a comparison of the average monthly balance requirement in SBI, 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, according to the bank's website, sbi.co.in. Customers with SBI 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 (PNB) branches located in metro, urban, semi-urban areas are required to maintain a minimum quarterly average balance of Rs. 2,000, according to the 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) | |
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 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 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 |
| (Source: icicibank.com) | |
Banks also offer savings accounts which do not require customers to maintain any particular minimum balance.
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