Saving Account Average Minimum Balance: Are you also often unable to maintain the minimum balance in your savings account? Are you worried about the bank's penalty every month? Then there is good news for you. The country's 5 big public sector banks have now abolished the rule of maintaining the average monthly balance (AMB).

This means that now you will not have to worry about maintaining a minimum balance in your savings account, nor will there be any fear of penalty. This is big news for you!

Let us tell you that the country's big public sector banks are now moving towards providing better facilities to their customers. Punjab National Bank (PNB Bank), Canara Bank, Indian Bank, and SBI had already abolished the rule of maintaining a minimum balance on savings accounts. Now, banks like Bank of Baroda have also been included in this count. If you have an account in any of these banks, then you can now breathe a sigh of relief. Because now no charge will be deducted even if the amount in the savings account decreases.

What is AMB?

AMB, i.e., Average Monthly Balance, is the minimum average amount that the bank expects the account holders to maintain in their accounts every month. If the customer is unable to maintain this amount, the bank charges a penalty. This charge depends on the type of account and the shortfall, i.e., the amount that is less.

Average Monthly Balance (AMB) is the minimum amount that the bank wants the account holders to keep in their accounts every month. If you are unable to maintain this amount, the bank imposes a fine. This charge depends on the type of your account and the amount that is less.

Now, know which banks have made what changes?

Bank of Baroda-

When will the change come into effect? From July 1, 2025

Which accounts will it apply to: All standard savings accounts.

This discount will not be available on premium savings accounts.

Interest rate

Up to Rs 1 lakh: 2.50%

Above Rs 1,000 crore: 4.25%

Indian Bank

When did the change come into effect? From July 7, 2025

Benefit: Minimum balance charges are completely waived on all savings accounts.

Now, customers will not have to pay a penalty on any kind of balance.

Canara Bank

When did the change come into effect? May 2025

Accounts covered:

Regular savings account

Salary account

NRI savings account

Less than Rs 50 lakh: 2.55%

Above Rs 2000 crore: 4.00%

Punjab National Bank (PNB)-

PNB has abolished the requirement of a minimum balance in all savings accounts.

Earlier, a penalty was levied based on the shortfall.

Less than Rs 10 lakh: 2.50%

Above Rs 100 crore: 2.70%

State Bank of India (SBI)-

SBI had abolished the condition of minimum balance in 2020 itself

This exemption applies to all savings accounts.

Now, there is no penalty for maintaining a minimum balance on a savings account.

What does this change mean for customers?

Now, customers do not need to check balance and maintain AMB every month.

Especially students, senior citizens and people of low-income groups will get relief.

Customers will get the freedom to invest the remaining amount by keeping only the required amount in the savings account.

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