Banks also offer savings accounts which do not require to maintain any particular minimum balance

Regular savings bank accounts require customers to maintain a certain average monthly balance (AMB). Top banks such as SBI or State Bank of India and HDFC Bank have fixed their average monthly balance requirements according to the location of a customer's account in urban, metro, semi-urban and rural areas. Banks also charge a penalty from customers who fail to maintain an average monthly balance in their savings account. The penalty varies according to various factors such as location of branch.

Here are the penalty charges levied for non-maintenance of balance by SBI and HDFC 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 of Rs. 3,000, according to the bank's portal, sbi.co.in. Customers with SBI savings accounts in semi-urban and rural branches are required to maintain a minimum average balance of Rs. 2,000 and Rs. 1,000, respectively. Customers failing to meet these requirements have to pay the following charges:

Metro and urban branch (required AMB Rs 3,000) Charges Shortfall <= 50% Rs. 10 + GST Shortfall > 50-75% Rs. 12 + GST Shortfall > 75% Rs. 15 + GST Semi-urban branch (required AMB Rs 2,000) Shortfall <= 50% Rs 7.50 + GST Shortfall > 50-75% Rs 10 + GST Shortfall > 75% Rs.12 + GST Rural (required AMB Rs 1,000) Shortfall <= 50% Rs 5 + GST Shortfall > 50-75% Rs. 7.50 + GST Shortfall > 75% Rs 10 + GST

(As mentioned on SBI's official website)

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 of Rs. 10,000, according to the bank's portal, 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. Customers failing to meet these requirements have to pay the following charges:

Description of Charges Regular Savings Account Minimum Average Balance Requirements Metro and urban branches: AMB Rs 10,000 Semi-urban branches: AMB Rs 5,000 Rural branches: AQB Rs 2,500 or fixed deposit of Rs 10,000 for minimum a period of 1 year 1 day Charges applicable on non-maintenance Balance non-maintenance charges AMB Slabs Metro & Urban Semi Urban (in Rs.) AMB Requirement -Rs 10,000 AMB Requirement -Rs. 5,000 >=7,500 to < 10,000 Rs 150 NA >=5,000 to < 7,500 Rs 300 NA >=2,500 to < 5,000 Rs. 450 Rs. 150 0 to < 2,500 Rs. 600 Rs. 300 plus taxes as applicable AMB – average monthly balance AQB Slabs (in Rs.) Balance non-maintenance charges (per quarter) - rural branches >= 1000 < 2,500 Rs. 270 0 - <1000 Rs. 450 plus taxes as applicable AQB – average quarterly balance