When opening a savings, you should consider the interest rate offered by your bank and its average minimum balance. Some banks require you to maintain a monthly minimum balance while others demand an average quarterly balance. What does this mean?
The minimum average balance is the amount that you must maintain in your current or savings account every month or quarter. If you fail to maintain the minimum average balance, your bank will charge a penalty.
It would seem that the best way to avoid the fee is to maintain a minimum balance. It's not easy because you don't know when you will need money. You can avoid the fee by keeping the minimum balance required in your account.
Research before opening an account
Consider the interest rate you will receive on your savings and the minimum balance that you need to maintain. Decide on an amount you can comfortably maintain each month, and then choose a savings account that has a similar requirement for minimum balance. Decide whether you will maintain a balance of Rs5000 or Rs10,000.
Banks such as IDFC FIRST Bank offer competitive interest rates and pay up to 6.75% per annum. Interest is credited to your account monthly.
Pay online with your credit card on the due date. You can spend the money you need and still maintain a certain amount on your account. You will earn interest on your account.
Calculate your minimum balance at least in advance
Calculating your minimum average amount in advance is also helpful. You can do this in two different ways. The most convenient way is to use an online calculator that calculates the average monthly balance. If you want to calculate it by yourself, this is the formula.
Monthly average balance = total of day-end closing balances / number of days in a month
Choose a "Zero Fee Banking" savings account
Zero-fee Banking is a relatively recent term, but it can have a significant impact on your savings account. You don't have to pay for basic banking services.
IDFC FIRST Bank, for example, recently announced its "Zero-fee Banking" promise, where customers are not required to pay fees for services that they use frequently, such as cash withdrawal and deposit at branches, demand checks, etc. You can save more and increase the balance of your savings account.
Follow these tips to keep your account active and available without worrying about the minimum average balance.
The benefits, features and offers that are mentioned in this article may change at any time. All contents are subject to any other terms and condition applicable, including those of the product and third parties. For the latest updates, please refer to URL.
IDFC FIRST Bank offers zero fee banking on Rs. The bank offers a 10,000 Average Monthly Balance (AMB), Savings Account, and higher account types with no fees, provided the AMB is maintained. The bank is offering these services free of charge in good faith. However, if abuse occurs, it reserves the right, in accordance with market standards, to charge fees. All rights reserved.