If you’re a HDFC Bank customer, you must have already received this piece of information from your bank regarding the changes concerned with savings account. The news is, the bank has decided to impose a penalty of Rs.50 for every 3 months if no transactions take place in a savings account for over 1 year. This is nothing new, all banks do it (worse, some banks temporarily stagnate the account) and probably won’t affect majority of the account holders.
Second change, you will have to pay the bank, as handling charges, if you deposit more than Rs.1 lakh in a single day. The charge is Rs.25 for every Rs.50 thousand over Rs.1 lakh (same charge will be applicable, even if you deposit 1 rupee over Rs.1 lakh). Note that if you’re a managed customer (in other words, a high net worth individual), this charge will not be applicable to you.
Good news is, even this change won’t affect majority of its customers.
Now the third change, relating to Average Monthly Balance (AMB), is surely a thing to note for many. For banks’ in Urban areas, if the AMB is less than Rs.5000, an amount of Rs.350 will be debited from your account every month. If the AMB is between Rs.5000 and 10000, Rs.250 will be debited from your balance as penalty.
In other words, the bank requires an urban account holder to maintain a monthly minimum balance of Rs.10000 or else, pay the mentioned penalty charges.
To be fair, other private banks’ such as ICICI bank too have similar high AMB requirements (compared to Public sector banks’) and impose a penalty of about Rs.750 for every 3 months if the balance falls below the required limit.
Prior to these changes, in the previous year, HDFC bank has already announced that there will be a penalty for those who wish to cancel their savings account. It’s all penalties these days..