Saving Account Average Minimum Balance: Are you often unable to maintain the minimum balance in your savings account? Are you worried about the bank’s penalty every month? Then there is good news for you.
India’s 5 big public sector banks have now abolished the rule of maintaining Average Monthly Balance (AMB)
Are you often unable to maintain the minimum balance in your savings account? Are you worried about the bank’s penalty every month? Then there is good news for you. India’s 5 big public sector banks have now abolished the rule of maintaining Average Monthly Balance (AMB). That is, now account holders will not have to worry about maintaining the minimum balance in the bank’s savings account. Nor will there be any fear of any kind of penalty.
The country’s big public sector banks are now moving towards providing better facilities to the customers. Punjab National Bank, Canara Bank, Indian Bank, SBI had already abolished the rule of maintaining minimum balance on savings account. Now banks like Bank of Baroda have also been included in this count. If you have an account in any of these banks, then you can now breathe a sigh of relief. Because now no charge will be deducted even if the amount in the savings account decreases.
What is AMB?
AMB or Average Monthly Balance is the minimum average amount that the bank expects the account holders to maintain in their account every month. If the customer is unable to maintain this amount, the bank charges a penalty. This charge depends on the type of account and the quantity of the shortfall.
Now know which banks have made what changes?
Bank of Baroda
When will the changes come into effect: From July 1, 2025
Applicable to which accounts: Applicable to all standard savings accounts.
This discount will not be available on premium saving accounts.
interest rate
Upto Rs.1 Lakh: 2.50%
Above Rs.1,000 crore: 4.25%
Indian Bank
When will the changes come into effect: From 7 July 2025
Benefit: Minimum balance charges are completely waived on all savings accounts.
Now customers will not have to pay penalty on any kind of balance.
Canara Bank
When did the change come into effect: May 2025
Covered Accounts:
Regular Savings Account
Salary Account
NRI Savings Account
interest rate
Less than Rs 50 lakh: 2.55%
Above Rs.2000 crore: 4.00%
Punjab National Bank (PNB)
PNB has abolished the requirement of minimum balance in all savings accounts.
Earlier there was a penalty based on shortfall
interest rate
Less than Rs.10 lakh: 2.50%
Above Rs.100 crore: 2.70%
State Bank of India (SBI)
SBI had abolished the minimum balance condition in 2020 itself
This exemption is applicable on all savings accounts
Now there is no penalty for not maintaining minimum balance in savings account
What does this change mean for customers?
Now customers do not need to check balance and maintain AMB every month.
Especially students, senior citizens and people of low income group will get relief.
Customers will get the freedom to keep only the required amount in their savings account and invest the remaining amount
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