Indian Bank, PNB to SBI: 4 savings bank accounts that don't have minimum average balance penalty

Many banks charge you for not maintaining a minimum balance in your savings account. For example, the HDFC Bank charges its users for not maintaining the Average Monthly Balance (AMB).

Several major banks have, however, started removing this requirement of a minimum balance in savings accounts. They have also eliminated the penalties for not maintaining a minimum balance.

One of the latest banks to do so is the Indian Bank. It has completely removed minimum balance charges across all savings bank accounts with effect from July 7.

State Bank of India savings account

The State Bank of India (SBI) in March 2020 eliminated all the penalties for non-maintenance of minimum balance in regular savings bank accounts. Since then, SBI customers have not been penalised for not maintaining the minimum balance in their accounts.

Canara Bank savings account

Effective June 1, 2025, Canara Bank no longer charges penalties for non-maintenance of minimum balance in any type of savings account. Canara Bank customers are not required to maintain any specific minimum balance in their accounts.

Indian Bank savings account

Indian Bank on July 2 said that it has removed all penalties on non-maintenance of minimum balance in all of its savings accounts to improve financial inclusion and accessibility, and to make its services more affordable for its customers.

“Public announcement: In a significant customer-centric initiative, we are elated to announce the complete waiver of minimum balance charges across all our Savings Bank accounts, effective from July 7, 2025. This move is aimed at fostering financial inclusion and making banking more accessible and affordable for all sections of society. Indian Bank remains committed to providing best-in-class service to its customers. T&C apply,” the bank said in a social media post on X dated July 2.

Punjab National Bank savings account

On July 1, Punjab National Bank also announced the removal of penalties on non-maintenance of the Minimum Average Balance (MAB) in any savings account.

In a post on X, the bank said, “With effect from 01st July, 2025, enjoy hassle-free banking without any penal charges on non-maintenance of minimum average balance across all Savings Account schemes.”

According to the official statement by the bank, the waiver is aimed at prioritising segments like women, farmers and low-income households.

“With this step, PNB reaffirms its role as a socially responsible and customer-centric institution, dedicated to making banking more accessible and equitable for all,” the statement said.