Using a savings account in a smart way calls for the necessity of knowing its terms and conditions very well. To avoid penalties, the staying updated on the Minimum Balance Requirement (MBR) is a must for millions of HDFC Bank clients. The rules for 2025 have become less complicated, but they still change a lot according to your account type and your place of living.
What Does Minimum Balance Requirement Mean?
Minimum Balance Requirement (MBR) is the minimum amount you are supposed to keep in your savings account every month on an average basis. HDFC Bank determines it based on the average of all your end-of-day account balances in a monthly cycle. A Non-Maintenance Charge, which could gradually eat up your savings, is imposed in case even if you fall short by a little bit.
Key Factors Influencing the Rules
The required minimum balance varies among customers. The two major factors that determine it are: the classification of your savings account and the location of the account, whether it is in a metro or non-metro area. Premium accounts, with their wide range of benefits and services, of course, have a higher MBR compared to the basic ones.
Non-Maintenance Charges
In the case your account’s average monthly balance does not meet the required amount, a penalty is imposed by HDFC Bank. Moreover, the charge attracts Goods and Services Tax (GST), which means that the total deduction from your account is increased. The amount of the penalty is also dependent on the tier; it is higher for those accounts that are way below their target as well as for the premium ones.
HDFC Bank Minimum Balance Overview (2025)
| Account / Location Type | Minimum Balance Requirement | Approximate Charges (Incl. GST) |
|---|---|---|
| Regular Savings Account (Metro) | ₹ 10,000 | ₹ 600 + GST |
| Regular Savings Account (Non-Metro) | ₹ 5,000 | ₹ 600 + GST |
| Premium Accounts (e.g., Preferred) | ₹ 25,000 – ₹ 1,00,000 | Higher, as per account terms |
| Basic Savings Bank Account | Zero | No Charge |
How to Avoid Penalty Charges
The most effective way to not get charged for non-maintenance is to always keep your balance above the required limit. You can also think of tying a fixed deposit to your savings account to act as an overdraft facility in case of any shortfalls. For the customers who find it difficult to maintain these minimum balances, it is quite practical to switch to a Basic Savings Bank Deposit Account, which allows zero-balance.
