If you have ever opened a savings account in a bank, then you must have heard about the minimum balance. This is the balance, which you have to keep a minimum amount in your account. If you do not do this, the bank charges you. But why does the bank force you so much to keep a minimum balance?
Why does it charge a Minimum Balance Charge?
Nowadays, the bank works to provide many types of facilities like ATM, mobile banking, and customer support. At the same time, the bank has to maintain its office. At the same time, it has to pay its staff. Along with this, it also has to ensure that all digital services run properly.
That is why the bank fulfills its needs by charging many types of charges.
There are two types of Minimum Balance.
Customers have to manage different types of minimum balances on the savings account. First, a balance has to be maintained every day, and a balance has to be managed every month as well.
Many government banks have removed this minimum balance. So that customers do not face any kind of problem. These include-
State Bank of India
Punjab National Bank
Indian Bank
Canara Bank
Bank of Baroda
Apart from this, many private banks force customers to maintain a minimum balance.
What problems are customers facing?
Nowadays, many big companies tie up with banks. Under this, their salary account is opened in a certain bank. Then, when the company changes, a new account is opened in the new bank for the other company. In this case, the previous salary account becomes a savings account.
In such a situation, it is difficult to maintain a minimum balance in a savings account.
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