If You Have An Account In Many Banks Then Be Careful, Banks Can Take This Big Step
Nowadays companies open most of the accounts in private banks, in such a situation it is also very important to know that after the salary stops coming, any account gets converted into a simple savings account.
Most of us usually have multiple savings accounts. Many reasons can be responsible for this. Every time you change jobs, a new salary account is opened. But it is important to understand that opening a bank account is easy, but maintaining it later can be very difficult.
Nowadays companies open most of the accounts in private banks, in such a situation it is also very important to know that after the salary stops coming, any account gets converted into a simple savings account. After that, you need to maintain the Monthly Average Balance (MAB) in that account. If you fail to do so, you will have to pay a penalty.
Why is MAB applied?
The Monthly Average Balance is the minimum amount that you need to maintain in your savings account every month. Banks calculate it on a day-to-day basis. Banks calculate this by dividing the amount of money left in your account at the end of each day by the number of days in the month. Banks usually levy a penalty if this figure falls below the average level. To avoid any penalty, check with your bank how much balance you need to maintain.
What is the minimum deposit amount in which bank?
The minimum average balance for urban, semi-urban, and rural branches in HDFC Bank's regular savings account is Rs 10,000, Rs 5,000, and Rs 2,500. If you have less money in your account then the bank imposes a fine of Rs 600 to Rs 150 on you depending on the balance. Similarly, one needs to keep Rs 10,000, Rs 5,000, Rs 2,000, and Rs 1,000 in an ICICI Regular Savings Bank account for metro, urban, semi-urban and rural locations respectively. If you have an Axis Bank prime account, then for this you need an average monthly balance of Rs 25,000.
The requirement of a monthly average balance in the SBI Savings Account has been done away with. You are not required to maintain any minimum balance in the salary account of any bank.
How is Average Balance Calculated?
Many people do not even know how to calculate the average balance. It is very important to understand this. It is calculated by dividing the closing balance of each day in your account by the number of days in that month. So even if your balance remains below the limit for most days of the month, you can avoid penalties by keeping more money in the account for the remaining days.
