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Canara Bank vs SBI vs HDFC vs PNB vs ICICI Bank: Average Monthly Balance And Charges Compared

Canara Bank has waived the average monthly balance (MAB) requirement for all types of its savings accounts. The rule came into effect from June 1.

Average Monthly Balance comparison
Banks charge a penalty from customers who fail to maintain an average monthly balance

Canara Bank’s latest announcement has brought relief to many customers. The public sector lender has waived the average monthly balance (AMB) requirement for all types of its savings accounts. The rule came into effect from June 1.

“With this new policy, all Canara Bank SB account holders will now enjoy true ‘no penalty on minimum balance’ for all SB accounts, free from any AMB-related penalties or fees,” the state-owned lender said in an official statement.

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Comparison Of Average Monthly Balance Of Different Banks

With Canara Bank’s waiver making headlines, let’s take a look at what other banks have as minimum average monthly balance requirements across top lenders.

State Bank of India: SBI does not have a minimum balance requirement. The largest public sector lender in India does not levy any penalties on failure to maintain a minimum amount in a savings account.

Axis Bank: The bank requires an average monthly balance of Rs 10,000 for semi-urban or rural areas or a fixed deposit of a minimum of Rs 50,000 for a tenure of 12 months or more.

If the balance is not maintained, the bank will charge a penalty amounting to 6% of the shortfall from the Average Balance Requirement. A maximum of Rs 600 can be charged by the bank, as per the tariff structure revised on Apr. 1, 2023. 

HDFC Bank: Customers who have a regular savings account must maintain a minimum average monthly balance of Rs 10,000 for urban areas only. They can also opt for an FD of Rs 1 lakh for a minimum tenure of one year and one day.

For semi-urban branches, HDFC Bank’s minimum balance requirement is Rs 5,000, or an FD of Rs 50,000 for one year and a day. The lender has mandated a minimum average monthly balance of Rs 2,500 or an FD of Rs 25,000 for rural areas. If the balance is not maintained, the lender can charge a penalty of up to Rs 600 for the accounts in the urban areas and up to Rs 300 for rural and semi-urban areas.

ICICI Bank

The lender requires customers with an Easy Receive Account to maintain a minimum balance of Rs 10,000 if they live in Metro or urban locations. In case of semi-urban and rural areas, Rs 5,000 is the minimum balance amount.

A maximum of Rs 450 can be charged from the customers for non-maintenance of minimum monthly average balance.

Punjab National Bank: PNB has a policy wherein customers living in metro areas need to maintain at least Rs 10,000 in their account. For urban areas, the minimum balance requirement is Rs 5,000. For rural areas, the amount is Rs 1,000. 

The lender charges different rates for non-maintenance of the average monthly balance, with Rs 450 being the maximum for Metro areas.

Bank of Baroda: Customers in urban areas need to maintain a minimum average monthly balance of Rs 2,000. For rural areas, the amount is Rs 500, while for semi-urban locations, it is Rs 1,000. 

The public sector lender will charge a maximum of Rs 120 as a penalty, as per its official website.

Disclaimer: Customers are requested to check the Monthly Average Balance (MAB) with their respective banks; charges may differ for the banks mentioned above if banks make any changes.

Savings accounts are one of the most popular financial instruments offered by banks. Customers can earn interest on the amount deposited in their account.

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