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Here's A Comparison Of Monthly Average Balance Requirements In Top Banks

Monthly average balance rule: Banks charge a penalty from the customers failing to maintain the required MAB in their savings accounts.

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Here's A Comparison Of Monthly Average Balance Requirements In Top Banks

The MAB requirements depend on location of a customer's account.


Most commercial banks in the country have fixed their monthly average balance (MAB) requirements. MAB is an average of the end-of-day (EoD) closing balances in a month. The MAB requirements depend on the location of a customer's account in urban, metro, semi-urban and rural areas. Banks such as State Bank of India (SBI), HDFC Bank and ICICI Bank charge a penalty from the customers failing to maintain the required monthly average balance in their savings accounts. The amount of penalty in case of non-compliance varies in different branch locations, based on factors such as the degree of shortfall.

Given below is a comparison of the monthly average requirements in SBI, HDFC Bank and ICICI Bank:

State Bank of India (SBI)

Customers having a regular savings bank account in SBI branches located in metro and urban areas are required to maintain a monthly average balance or MAB of Rs 3,000, according to the bank's website, sbi.co.in. Customers with SBI  accounts in semi-urban and rural branches are required to maintain a minimum average balance of Rs 2,000 and Rs 1,000, respectively.

Branch typeAverage monthly balance
MetroRs. 3,000
UrbanRs. 3,000
Semi-urbanRs. 2,000
RuralRs. 1,000
(Source: sbi.co.in)

HDFC Bank

Customers having a regular savings account in HDFC Bank branches located in metro and urban areas are required to maintain an average monthly balance or MAB of Rs 10,000, according to the bank's website - hdfcbank.com. In semi-urban branches, the regular savings account holders are required to maintain an average balance of Rs 5,000 every month. In rural branches, the customers are required to either maintain an average quarterly balance of Rs 2,500 or set up a fixed deposit of Rs 10,000 for a maturity period of a minimum one year and one day

Branch typeAverage monthly balance
MetroRs. 10,000
UrbanRs. 10,000
Semi-urbanRs. 5,000
RuralRs. 2,500
(Source: hdfcbank.com)

ICICI Bank 

Customers having a regular savings account in ICICI Bank branches located in metro and urban areas need to maintain a MAB of Rs 10,000, according to the bank's website - icicibank.com. The MAB required in semi-urban, rural and gramin locations are Rs. 5,000, Rs. 2,000 and Rs. 1,000 respectively. 

Branch typeAverage monthly balance
MetroRs. 10,000
UrbanRs. 10,000
Semi-urbanRs. 5,000
RuralRs. 2,000
GraminRs.1,000
(Source: icicibank.com)

These banks also offer certain savings account which do not require customers to maintain any particular minimum balance.These are known as zero balance savings accounts.



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