Why Do Banks Have A Minimum Balance?

What is a minimum balance fee?

In banking, a minimum daily balance is the minimum balance that a banking institution requires account holders to have in their accounts each day in order to waive maintenance fees.

The bank won’t charge her the service fee because her final balance that day is $1,700..

What is the lowest minimum balance required for a savings account?

These tend to be much higher than the daily minimum needed to avoid monthly fees; for example, Bank of America’s Regular Savings Account requires a minimum daily balance of $300 to waive the monthly maintenance fee and $2,500 to waive the excessive withdrawal fee.

What is minimum balance in bank?

List of All Banks Savings Account Interest Rates and Minimum Balance 2020List of Savings Account BanksMinimum Balance Required(INR)HDFC Bank2500/5000/10000/25000ICICI Bank0/1000/2000/2500/5000/10000IDBI Bank500/2500/5000IDFC Bank2500033 more rows

What is minimum monthly balance?

Definition of minimum monthly balance 1. The least amount of money that has been in a bank account during the whole month.

How do I know if my account is checking or savings?

A checking account is a bank account you can write checks from, or access several other ways, which tends to make it your go-to, daily transaction bank account. A savings account is where you stash funds that you aren’t ready to use yet, often with the goal of accumulating more.

What’s better than a money market account?

Plain-Vanilla Savings Account As a safe alternative to money market funds, savings accounts pay fairly low interest, but banks often have low minimums to open the account.

Which bank has the lowest minimum balance?

ICICI Basic Savings Account.HDFC BSBDA Small Savings Account.SBI Basic Savings Bank Account.Axis Bank Small Basic Savings Account.Indus Small Savings Account.Standard Chartered Bank’s Basic Banking Account.RBL Bank’s Abacus Digital Savings Account.IDFC Bank Pratham-savings account (BSBDA)

Do you have to keep a minimum balance at a bank?

Not all bank accounts require a large minimum deposit. … Even though they allow a small opening balance, some banks charge a fee if you don’t keep a minimum amount on deposit. So, even though you can let your account fall below the minimum balance amount, you will likely be charged a hefty fee for doing so.

Which kind of account is most likely to require a minimum balance?

A money market account can be well-suited for medium-term goals because it requires a higher minimum balance and pays a higher yield.

What is Bank maintaining balance?

Maintaining Balance is the Minimum Average Daily Balance we should have in our savings account or checking account every month.

What will happen if minimum balance is not maintained?

If customers fail to maintain this balance, they will have to pay a penalty of up to Rs 75 – every month! Source – PTI. Most banks require their customers to maintain a minimum balance in their account. They charge their account holders for the non-maintenance of minimum average balance (MAB).

Which bank has lowest minimum balance?

HDFC Bank – Basic Savings Bank Deposit Account HDFC Basic Savings Bank Deposit Account or BSBDA is a Savings Account that does not require you to maintain a minimum balance on your account.