Minimum Balance Savings Accounts: A Bank Account has become the need of every person, whether it is for everyday transactions or future savings. But keeping a minimum balance in the savings account becomes a big task for many people, because if the balance is reduced, the bank can impose a penalty.
To Satisfy client needs, major banks such as Axis Bank, IDBI Bank, and Bank of Baroda (BoB) provide a range of savings accounts with various minimum balance requirements. This article is for you if you already have an account with one of these banks or are thinking of opening one.
Axis Bank Savings Account: A combination of flexibility and convenience
One of the top private banks in India, Axis Bank provides its clients with a range of savings options. These consist of the Prestige Savings Account, Liberty Savings Account, Easy Access Savings Account, and Basic Savings Account.
The main characteristic of Axis Bank is that it considers the requirements of all kinds of clients. For example, there is no need to keep a minimum balance in the Basic Savings Account, which is best for those who make fewer transactions or want to avoid penalties. This account gives you free RuPay debit card, mobile banking, and access to 15,000 + Axis Bank ATMs.
At the same time, if you choose Easy Access Savings Account, then the minimum balance has to be Rs 12,000 in metro cities and Rs 5,000 in semi-urban / rural areas.
In Liberty Savings Account, you have to meet the condition of spending Rs 25,000 every month or keeping the balance. You get offers like 5% cashback on weekend shopping in exchange, however.
Premium accounts, such as Prestige and Priority, are intended for high-net-worth individuals and have minimum balances of Rs 75,000 and Rs 2 lakh, respectively.
Based on daily balance, Axis Bank credits quarterly based on its interest rate range—3% to 3.5% annually. Axis Bank is a great choice for you if you wish modern banking conveniences and flexibility.
IDBI Bank: From zero balance to minimum balance savings accounts:
From Sabka Basic Savings Account to Super Savings Account to Advantage Savings Account to Being Me (Youth) Account, IDBI Bank presents a range of choices to its clients. The main quality of IDBI is its emphasis on financial inclusion. The Sabka Basic Savings Account and Small Account (Flexible KYC) do not have a minimum balance requirement. Those with low income or lacking complete KYC documentation will find these stories ideal. These accounts come with free debit cards, SMS alerts, and online banking.
Super Savings Account has a minimum balance of Rs 5,000 for metro and urban areas, Rs 2,500 for semi-urban, and Rs 500 for rural areas.
Advantage Savings Account: the amount is Rs 10,000 for metro / urban and Rs 1,000 for rural areas. If you choose the Advantage Savings Plus account, then the MAB (Monthly Average Balance) of Rs 25,000 is mandatory everywhere.
IDBI’s interest rates range from 2.75% to 3.40% per annum, which vary depending on the account and balance. IDBI is great for those who want good banking services at low cost, especially in rural and semi-urban areas.
Bank of Baroda Savings Account: A combination of trust and confidence.
Bank of Baroda (BoB) is a trusted public sector bank which offers a variety of savings accounts to its customers, such as Baroda Advantage Savings Account, Baroda Super Savings Account, and Baroda Basic Savings Account.
BoB’s Basic Savings Account is great for those who want a zero-balance account. There is no MAB condition in this account, and you get a free debit card, mobile banking, and passbook facility. It is specially designed for those who want simple banking services.
Baroda Advantage Savings Account has a minimum balance of Rs 5,000 for metro / urban areas, Rs 2,500 for semi-urban, and Rs 1,000 for rural areas. In Baroda Super Savings Account, this amount goes up to Rs 10,000 for metro / urban.
However, in return, you get premium facilities like more free ATM transactions and discounts on lockers. BoB’s interest rates range from 2.75% to 3.25% per annum, calculated on a daily balance. BoB is ideal for customers who want reliable and affordable banking.
Penalty for not maintaining a minimum balance
Depending on the account and region, there may be a penalty for failing to maintain a minimum balance in Axis, IDBI, and BoB. Axis Bank’s Easy Access Savings Account penalty can be lowered by 5%, or up to Rs 600, at most. In contrast, the minimum penalty at IDBI Bank is Rs 50 for urban and metro areas, Rs 25 for semi-urban areas, and Rs 5 for rural areas. Depending on the MAB shortfall, the penalty in BoB can be anywhere between Rs 100 and Rs 400. You can avoid these penalties by choosing a zero-balance account.
The Final Conclusion
Axis Bank is best for those who want modern banking facilities, such as mobile apps and cashback offers. It is especially suitable for young and urban customers. IDBI Bank is good for those who want banking with zero balance accounts or low MAB, especially in rural and semi-urban areas. Bank of Baroda is ideal for customers who want reliable and affordable banking, be it a city or a village.
Disclaimer: This article is for general information. Minimum balances, interest rates, and terms may change from time to time. Before opening an account, check the latest information from the official website of Axis Bank (www.axisbank.com), IDBI Bank (www.idbibank.in), Bank of Baroda (www.bankofbaroda.in) or the nearest branch.
