NEW DELHI: Most of us normally have multiple savings bank accounts. The cause might be anything from opening a new pay account each time one switches jobs to taking advantage of particular banks’ high interest rates on fixed deposits. Even if it is simpler to register a bank account, it is crucial to understand that you must keep a monthly average balance (MAB) in each of these accounts in order to avoid paying a fee in the event of a low balance.
You must keep as least as much in your savings account each month as the monthly average balance. Banks determine it by adding up the closing account balances for each day of the period and dividing the total by the number of days. Banks typically impose a penalty if the statistic is below the average level. Find out from your bank how much of a balance you must keep to avoid fees.
For instance, the Regular Savings Account from HDFC Bank requires a minimum average balance of Rs 10,000, Rs 5000, and Rs 2500 for branches in urban, semi-urban, and rural areas, respectively. Depending on the balance, the bank may assess a penalty of between Rs. 600 and Rs. 150 if the bank falls below the acceptable threshold. For instance, if the balance is less than Rs. 2500, a penalty of Rs. 600 is assessed, and if it is between Rs. 7500 and Rs. 10,000, a penalty of Rs. 150 is assessed (for metro and urban accounts).