Zero Charges on 28 Commonly Used Savings Account Services
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A savings accountholder needs to maintain their account’s monthly average balance to avoid facing non-maintenance charges.
According to banking terminologies, average monthly balance or AMB is the average amount that you must keep in your savings account every month. A maintenance charge is levied if the account’s average monthly balance is not maintained. The amount is computed at the end of each month.
From the 1st day till the end of every month, we make a note of the end-of-day balance in your savings account for each day. Then we sum them up and divide by the number of days in the month. That’s it.
Most banks, including IDFC FIRST Bank, calculate AMB using the end-of-the-day/daily closing balances in savings accounts, which are summed up over a given month to determine the monthly average balance. The closing day balances for a 31-day month are totalled, and the sum is divided by 31 to get the average.
To fulfil AMB requirements, you must keep sufficient amount in your account because if the the AMB is not maintained, banks can levy certain charges.
AMB = The sum of each day’s closing balance / Number of days in the month
The fine for not being able to maintain a savings account’s minimum average balance differs from bank to bank. The AMB charges for not keeping your MAB are influenced by the area you reside, the type of savings account you have, and the bank you have an account with.
Some banks calculate these charges based on how you fall short of the requirement. As a rule, the farther it is away from meeting the requirements, the greater the chances of paying maintenance charges. You can choose banks with minimal charges such as IDFC FIRST Bank and open bank account online today.
It is not difficult to maintain the AMB in your savings account. All you need to do is to keep the following points in mind:
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
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