What is the Minimum Balance in a Savings Account?

There are many benefits of holding a savings bank account, but it comes with certain rules and regulations as well. You are supposed to maintain a minimum balance in your account so that charges are not levied.

Understanding Minimum Balance in Savings Accounts

All banks require you to maintain a minimum balance in their regular savings bank accounts. You have to deposit the sum in your account when you open the account.

The minimum balance that needs to be maintained in savings accounts depends on the bank, type of bank account, and location. The amount is the lowest in rural branches and highest for metro cities. 

On failing to maintain the minimum balance, banks charge you a penalty or a fee. This may again depend on similar factors like location and the bank. 

Minimum Balance of Top Banks

As the minimum balance in savings accounts varies depending on banks and the location, here is a table that lists the top banks and their minimum balance requirements. The banks that offer zero-balance accounts are also mentioned in the table. 

Please note that the above figures are subject to change at the bank’s discretion.

How Important is it to Maintain Balance in Savings Accounts?

Most regular savings bank accounts require you to maintain a minimum balance. But, banks also have zero-balance savings accounts, where you do not need to maintain a minimum balance. 

A zero-balance bank account may have fewer benefits as compared to a regular savings bank account. However, important features like ATM cards or Debit cards, cheque facilities, etc. are provided for zero-balance accounts as well.

Types of Savings Bank Accounts

All banks offer multiple types of savings bank accounts. Each of these types has a different minimum required balance and different interest rates. Here are a few most common types of savings bank accounts - 

• Zero-Balance Bank Accounts

• Bank Accounts for Minors

• Bank Accounts for Women

• Bank Accounts for Senior Citizens

• Bank Accounts Without Cheque Books

Conclusion

Banks require you to maintain a minimum balance in their savings bank accounts. Some banks have a quarterly minimum balance requirement, while some have monthly minimum balance requirements. 

The amount varies depending on the type of bank account and also on the location of the branch.

In the occasion of your balance going below the minimum requirement, banks charge for extra for regular services, and may also charge some penalty or fees. 

These fees also depend on the bank. Consider looking carefully at these charges before opening a bank account.

In case your bank balance has reached close to the minimum, and you need funds for some emergency, you can consider taking an instant personal loan through the Moneyview digital lending app. You can get loans of Rs.5,000 to Rs.10 Lakh with minimal documentation.