What is the minimum balance for SBI savings account 2021?

SBI, the country’s largest bank, on Wednesday announced a waiver on maintaining the average minimum balance (AMB) requirement for all savings bank accounts. Currently, there is an AMB of ₹ 3,000, ₹ 2,000 and ₹ 1,000 in metro, semi-urban and rural areas, respectively.

How does minimum balance work?

MAB is the average of all the closing-day balances in a given month. To calculate the MAB, you need to add each day’s end-of-the-day balance and divide it by the number of days in that month. Assuming, a bank asks that you maintain Rs 5,000 as average monthly balance: On July 18, deposit of Rs 10,000 takes place.

What is the minimum current account balance in SBI?

SBI Bank Current Account Products

S.No.	SBI Current Account	SBI Current Account Minimum Monthly Average Balance (MAB)
1.	Regular Current Account	Rs. 10,000 per month
2.	Power Gain Current Account	Rs. 2,00,000/-
3.	Power Pack Current Account	Rs. 5,00,000 per month
4.	Power PoS Current Account	Rs. 5,000 per month

What happens if I maintain zero balance in SBI?

Deposit and withdrawal services are free of cost. Also, the bank cannot levy charges for non-operation or activation of an inoperative account. SBI zero balance savings account allows a maximum of 4 cash withdrawals free of cost in a month, including ATM withdrawals at own and other bank’s ATMs.

Which bank is best for minimum balance?

List of All Banks Savings Account Interest Rates and Minimum Balance 2021

List of Savings Account Banks	Minimum Balance Required(INR)	Savings Account Interest Rates (p.a.)
ICICI Bank	0/1000/2000/2500/5000/10000	3.00\% – 3.50\%
IDBI Bank	500/2500/5000	3.30\% – 3.80\%
IDFC Bank	25000	6.00\% – 7.00\%
Indian Bank	250/500/1000	3.00\%

Why do banks require a minimum balance?

Banks require minimum balances for a variety of reasons. It allows the bank to have more deposits, which in turn allows them to lend more money and maintain certain regulatory financial ratio requirements. It also allows them to profit from fees if balances are not maintained.

Which bank is best for zero balance current account?

Banks Offering Zero Balance Current Account

Bank	Zero Balance Current Account Type
ICICI Bank	Shubhaarambh Current Account New Startup Current Account Chartered Accountant Current Account
Axis Bank	Local Current Account
Kotak Mahindra Bank	Start up Premium

Does SBI current account give interest?

SBI like any other Current Account does not offer an interest on the account.

What is SBI zero?

Known as zero balance savings account of State Bank of India (SBI), the Basic Savings Bank Deposit (BSBD) account is designed as a savings account that offers certain minimum facilities, free of charge, to the account holders. For non-operation or activation of an inoperative account, the bank cannot levy charges.

What is the monthly average balance (Mab) requirement of banks in India?

The Monthly Average Balance (MAB) requirements of Public Sector banks are quite little like Rs 5000. On the contrary, MAB needs of private sector banks may be as high as Rs 10000. If it’s about privileged saving accounts, then it can go even more exorbitant.

What is ‘monthly average balance’ in SBI?

Account holders whose saving account balances fall short of the “Monthly Average Balance” would bear the brunt. Rs 5000 and Rs 1000 is the “Monthly Average Balance” for urban and rural areas respectively. Way back in 2012, SBI had scrapped this requirement of Monthly Average Balance maintenance.

What is the “monthly average balance” requirement of your bank?

Suppose the “Monthly Average Balance” requirement of your bank is Rs 5000. It implies that the bank wants the average in your account to be Rs 5000. It does not necessarily require that you should have Rs 5000 balance at the end of every day. It’s your discretion as to how to go about it.

What are the requirements to open a bank account in India?

1 An account can be opened with initial deposit of INR 50/-. -Minimum balance of INR 50/- 2 One cheque book per year free of charge 3 50 (Fifty) withdrawals per year free of charge 4 Annual credit allowed is INR 1,00,000/- lakh 5 Annual balance should not exceed INR 50,000/-