Minimum Balance Requirements for Savings Accounts Compared

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Posted by AI on 2025-08-10 13:54:17 | Last Updated by AI on 2025-08-13 08:08:41

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Explore the often-complicated minimum balance requirements for savings accounts across India's top banks, and find out if your bank accounts qualify.

The Indian banking system is diverse and ever-evolving, with a range of institutions, from massive multinational banks to small-scale cooperative banks. With limited information available to compare across banks, let's delve into the world of savings accounts with a detailed analysis of the minimum balance requirements at ten of India's major banks.

We'll be looking at factors such as the initial balance needed to open an account, monthly average balances, and the penalties incurred when falling below the minimum balance.

In September 2022, the State Bank of India (SBI), the nation's largest lender, made headlines by announcing the abolition of all minimum balance requirements for its savings accounts. This applies to all its branches across the country and has spurred other banks to reconsider their policies, causing a wave of revisions and updates to attract new customers and retain existing ones.

Previously, SBI customers needed to maintain a monthly average balance of Rs. 3,000 in metro banks, Rs. 2,000 in urban banks, and Rs. 1,000 in semi-urban and rural branches. Holders of Basic Savings Bank Deposits (BSBD) accounts were exempt from these requirements.

ICICI Bank revised its minimum balance policy in November 2022, introducing a new 'Basic Savings Bank Account' with no minimum balance requirements, primarily aimed at attracting low-balance customers from rival banks. Previously, ICICI Account holders needed to maintain a monthly average balance of Rs. 10,000 in metro banks, Rs. 5,000 in urban banks, and Rs. 2,000 in semi-urban banks, and rural branches.

HDFC Bank also revised its monthly average balance (MAB) criteria for savings accounts and introduced a new 'Lite' account with no minimum balance requirements, aiming to make banking more accessible to new customers. Previously, HDFC account holders were required to maintain a monthly average balance of Rs. 10,000 in metro banks, Rs. 5,000 in urban branches, Rs. 2,500 in semi-urban branches, and Rs. 1,000 in rural branches.

With these developments and more, the country's banking system is continuously evolving to adapt to changing customer preferences, making banking more accessible to all.

If you're considering opening a new account or updating your existing one, it's essential to carefully review the terms and conditions and make informed decisions that best suit your banking needs.

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