Minimum Balance Rules: If you’re a customer of the private sector Bandhan Bank, this news is useful. The bank has announced that the minimum average balance (MAB) requirement for its standard savings accounts will be reduced from Rs 5,000 to Rs 2,000, effective February 1, 2026. This revision will require customers to lower the minimum average balance in their savings accounts to avoid non-maintenance fees.
What does minimum average balance mean?
It’s important to understand that the minimum average balance is the average amount kept in an account throughout a month, calculated by averaging the balances at the end of each day in that month. Banks usually impose a fee if the average balance falls below the required limit. However, starting soon, customers of Bandhan Bank’s Standard Savings Account will need to keep a monthly average balance of Rs 2,000 instead of the previous Rs 5,000.
Bandhan Bank Savings Account Interest Rates
The interest rate for the bank’s savings account is 2.70% per year for deposits up to Rs1 lakh. For deposits exceeding Rs 1 lakh, higher tiered rates apply. Deposits between Rs 5 lakh and Rs 10 lakh earn 4.85% per year, while those from Rs 10 lakh to Rs 50 lakh earn 5.35%. Deposits ranging from Rs 50 lakh to Rs 5 crore earn 5.55%, and amounts from Rs 5 crore to Rs 250 crore earn 6.00% per year.
For deposits over Rs 250 crore, the interest rate is 6.15% per year for amounts between Rs 250 crore and Rs 500 crore, provided the deposit exceeds Rs 1 lakh. Deposits over Rs 500 crore and up to Rs 750 crore earn an interest rate of 6.85%. For amounts above Rs 750 crore and up to Rs 1,000 crore, the interest rate is tied to the Mumbai Interbank Offered Rate (MIBOR), with an additional 0.85%. Deposits exceeding Rs 1,000 crore earn an interest rate of 6.15% per year for amounts above Rs 1 lakh.