5 Things to Consider Before Opening a Bank Account

2. Minimum Balance Requirement

In banks having the provision of maintaining a minimum balance, you would be required to maintain a certain amount of money in your account. The minimum amount required could be maintained could be ranging between a lower amount of Rs.1000 in a public-sector bank to as high as Rs.25,000 in a foreign banks. This amount of minimum balance are calculated either on a monthly basis or a quarterly basis (three months), depending upon the bank. When your bank balance falls below the required level i.e. minimum balance, your bank would deduct Rs.350 a month to Rs.1000 per quarter as a penalty against your inability to retain the funds.

Opting for a bank which requires you to maintain a high minimum balance, would prove to be troublesome to cope up with. Your failure in retaining a minimum balance in your account would make you obliged to pay a higher penalty. Also, your money earns a mere 4-6 percent in a saving bank, while it would earn a higher return elsewhere. Recently, the State Bank of India has dropped off its provision of the minimum balance requirement for its saving bank customers, and other banks may do the same. You must select a bank which will not force you to maintain the high minimum balance in your account.