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Not Able To Maintain Minimum Balance In Savings Account? Try This


If you are living in a metropolitan city you need to maintain a minimum balance of Rs 10,000 in a private sector bank. If you do not, there will be a monthly charge of Rs 350 for average daily balances lower than Rs 5000 and Rs 250 for balances between Rs 5000 and Rs 10,000.


Not Able To Maintain Minimum Balance In Savings Account? Try This
This is of course, if you do not have a zero balance salary account. However, if you have not been maintaining the average balance, you can convert the savings account to a Basic Savings Deposit Account and can maintain a zero balance.

All you wanted to know about the Basic Savings Deposit AccountAll you wanted to know about the Basic Savings Deposit Account

However, nothing comes free, so you will end-up losing some benefits under the Basic Savings Deposit Account: Here are the restrictions:

1) Some banks like ICICI Bank do not provide net banking facility. This is a big loss if you are used to net banking.

2) Some banks will grant you a limited amount of cheque leaves for the year. For example, you will be entitled to just 15 cheques leaves and beyond that charges would apply.

3) The RBI has allowed as many as 4 cash based transactions, beyond banks maybe free to levy charges.

Now it would depend on the bank whether it wishes to levy charges or not.

4) The country's central bank has stipulated that there should be a debit card that should be granted for the account. So, you will receive a debit card, but the cash withdrwal restrictions will apply.

5) You can convert your savings account to a no frills account.

6) Nomination facility is also available under this account.

7) Some banks like ICICI Bank do not offer mobile banking facility under this Basic Savings Deposit Account.


At times it is highly likely that you may not be able to maintain the neccessary balance in your savings bank account, particularly with a private sector bank. In case of a government owned bank the minimum balance required is already very low. Most of the government owned banks require a minumum balance of just Rs 1000 per month.

If you wish, you can convert to a basic savings bank account, but, you have to be careful ofthe charges. Remember, there is no age bar to open the account, nor is there any income requirement.

So, go ahead and open an account only if you have minimal transactions. As mentioned earlier, you can convert an exisiting savings accoun to a Basic Savings Deposit Account.

Story first published: Saturday, June 4, 2016, 6:40 [IST]
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