Ending Soon! Save 33% on All Access

Key Tips To Help Maintain The Minimum Average Balance In Your Savings Account The monthly average balance (MAB) is a crucial aspect of maintaining a healthy bank account. In this article, we'll define MAB, explain its importance, and provide valuable tips to help you maintain a healthy balance.

By Vikash Jha

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

The monthly average balance (MAB) is a crucial aspect of maintaining a healthy bank account.

The bank's interest rate and average minimum balance requirement are key factors to consider when opening a savings account. Some banks demand you maintain a minimum monthly balance, while some require an average quarterly balance. But what does it mean?

The 'Minimum Average Balance' refers to the amount you must remain in your savings account or current account each month or quarter. The bank charges a penalty fee in case you are unable to maintain this balance.

Maintaining the minimum balance would be the obvious way to avoid paying the fee. However, it isn't easy as you never know when you might need money. Here are a few ways to avoid paying the fee by maintaining the required average balance in your savings account.

1. Do your research before opening a savings account

When choosing a savings account, carefully consider the minimum balance you must maintain in your account and the interest you will be receiving on your savings. Thus, determine an amount that you can easily maintain per month and select a savings account with a similar minimum balance requirement. Decide if you want to maintain an average balance of ₹5000, ₹10,000, or more.

Banks like IDFC FIRST Bank have comparatively lesser minimum balance requirements, provide competitive interest rates, and pay out up to 6.75% p.a. interest which is credited monthly.

2. Use credit cards

Use your credit card to make a payment online on the due date. This will allow you to spend money when you need, and at the same time maintain a minimum amount in your account. Thus, you will not miss out on the chance to earn interest on your savings account.

3. Calculate your minimum average balance in advance

It also helps to calculate your minimum average balance in advance. There are two ways of doing this. An online monthly average balance calculator is the most convenient method. However, if you wish to calculate it yourself, here is the formula:

Monthly average balance = (total of end of the day closing balances) / (number of days in one month)

4. Choose a 'Zero-fee banking' savings account

'Zero-fee banking' is a relatively new term but can significantly affect your savings account. It means you do not need to pay charges to use basic banking services.

For instance, IDFC FIRST Bank recently announced its 'Zero-fee banking' promise where customers do not have to pay for commonly used services, including cash deposit and withdrawal at branches, demand drafts, etc. This allows you save more money and increase your savings account balance.

By following these tips, you can keep your savings account active and accessible without stressing about the minimum average balance.


The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer to www.idfcfirstbank.com for latest updates.

IDFC FIRST Bank offers Zero Fee Banking on Rs. 10,000 Average Monthly Balance (AMB) Savings Account and higher account variants, subject to maintenance of AMB in the account. These services are being offered free in good faith, and in case of abuse, the bank reserves the right to charge fees as per market norms. All rights reserved.

News and Trends

CoverSure and CirclePe Raise Early-Stage Funding

Here are the Indian startups that announced early-stage funding rounds.


Is Consumer Services a Good Career Path for 2024? Here's the Verdict

Consumer services is a broad field with a variety of benefits and drawbacks. Here's what you should consider before choosing it as a career path.

Business Models

How to Become an AI-Centric Business (and Why It's Crucial for Long-Term Success)

Learn the essential steps to integrate AI at the core of your operations and stay competitive in an ever-evolving landscape.