Have you ever seen a meagre amount of money being deducted from your bank account at the end of the month? Ever wondered what is it for?
No, it isn’t always a ‘service’ charge levied by your bank. Sometimes, it is your bank charging a penalty from your account for failing to maintain a minimum balance that is required to be maintained by you as a savings bank account holder.
In case you didn’t know, savings bank accounts in India need to have a certain monthly average balance (MAB), and a failure to adhere to that balance leads to a deduction in balance in the form of a penalty.
Each bank in India has its own minimum balance rules that vary according to the location of the bank branch.
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Although some banks offer zero balance accounts as well, most banks require its customers to maintain the monthly average balance.
We’ve made things simpler for you by noting the minimum balance rules of top banks in the country. Check it out here –
Image Credits: Google Images
Sources: NDTV, The Financial Express, Mint + more
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