Good News For Canara Bank Savings Account Holder: No Minimum Monthly Account Balance Needed

Canara Bank announced that from Sunday, June 1, 2025 onwards, it will renounce the requirement for its customers to hold an average monthly balance (AMB) for all types of savings accounts. This action will consequently mean that the customers will not be charged any fees in case they fail to maintain the minimum balance threshold for their savings accounts, be them of any type, provided by the bank. 

What Is An Average Monthly Balance (AMB)

A minimum AMB refers to the lowest amount which must be sustained in the bank by the account holder. This minimum balance has to be maintained each month, and failure to do so will result in monetary penalties levied by the bank. This fee or penalty might range from a few hundred to a few thousand, depending upon the bank's policy and the type of account. The bank is also entitled to deduct the fee directly from your bank account the next time you make any deposit, and add this to your bank statement. 

Other Banks' Mandates

• HDFC Bank: For semi-urban branches, the AMB is capped at Rs 5,000, or an FD of Rs 50,000 for a minimum 1-year-1-day period. For a rural bank account, the account holder will have to maintain an AMB of Rs 2,500 or an FD of Rs 25,000 for the same 1-year-1-day period. 

  For non-compliance in this case, the bank will charge up to Rs 600, for an urban account. But slab for the penalty amount might differ, depending on the type of accounts. 

• Axis Bank: April 1, 2024, onwards, the AMB required for a Priority Savings Account if capped at Rs 2,00,000, or Rs 2 lakh per month for all types of Metro, Urban, Semi-Urban and Rural accounts. 

  The AMB for all locations is set at Rs 10,000 for every month for a semi-urban or rural bank account or an FD of a minimum of Rs 50,000 for at least 12 months or more. 

  In case of non-compliance, a 6 per cent of the insufficiency from the AMB will be charged. This penalty amount can go up to maximum Rs 600, according to the tariff structure published by the bank with effect from April 1, 2023. 

• The State Bank of India: According to the official State Bank of India website, the Basic Savings Bank Account provided by the nation's largest public sector bank does not call for customers to keep any minimum balance, monthly or quarterly. Also, both the regular Savings Account and the Savings Plus Account provided by SBI do not have any Monthly Average Balance (MAB) requirement, making them viable choices for a broad array of customers.

• ICICI Bank: As stated on the ICICI Bank website, Easy Receive Account customers must keep a minimum balance depending on the city in which the branch is located. For metro and urban branches, the minimum balance is Rs 10,000, while for semi-urban and rural branches, it is Rs 5,000. If clients fail to keep the necessary monthly AMB, the bank can charge a penalty of up to Rs 450, subject to the shortfall amount and where the account is maintained.