No minimum balance needed for SBI savings bank accounts

SBI has also rationalised interest rate on savings account to a flat 3% for all savings bank account holders.

SBI announced today that it has waived off the requirement of holding average monthly balance for savings accounts. “State Bank of India has decided to waive maintenance of Average Monthly Balance (AMB) for all Savings Bank Accounts,” the bank’s press release stated. From now on all SBI customers will enjoy the zero balance facility in their savings bank accounts. This, according to the press release, will benefit 44.51 crore savings bank account holders.

It added that the charges on maintaining AMB are now waived off on all 44.51 crore SBI savings bank accounts.

Currently SBI savings bank account customers need to maintain an average monthly balance of Rs 3,000, Rs 2,000 and Rs 1,000 in Metro, Semi Urban and Rural areas, respectively. Further, the bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of monthly balance. The bank has also waived off SMS charges levied on quarterly basis

The bank has also rationalised interest rate on savings accounts to a flat 3 per cent per annum for all savings bank account holders. Previously, savings accounts with a balance of less that Rs 1 lakh earn 3.25 per cent a year, while those with