Is it necessary to maintain minimum balance?
Various banks have prescribed minimum balances, which an account holder is required to maintain, failing which, a charge is levied.
Country’s largest lender State Bank of India on 11 March waived maintenance of minimum balance requirements for all savings bank accounts..
What will happen if minimum balance is not maintained?
Most banks require their customers to maintain a minimum balance in their account. They charge their account holders for the non-maintenance of minimum average balance (MAB). … If customers fail to maintain this balance, they will have to pay a penalty of up to Rs 75 – every month!
Why do banks allow free transactions if a minimum balance is kept in the account?
Many financial institutions require a minimum balance to open an account, earn a higher interest rate and avoid a service fee — or any combination of these things. In short, they need to be able to make more money from your deposits than you cost them to maintain your accounts.
How much money do you have to keep in your bank account to keep it open?
For most individuals, a savings account balance should be between $3,000-$5,000 at minimum. For families, this number should be much higher. However, a general rule is to keep six months’ of expenses in your savings account in case you lose your job.