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When we open a savings account, we are asked to maintain a minimum balance in our bank account. A minimum balance means that there should always be a certain amount in your bank account. This amount can be different for every bank. But do you know that not maintaining a minimum balance in your bank account can cause you many losses? Yes, this is true. Let us know why this happens and what losses you can suffer.

Disadvantages of not maintaining a minimum balance

If you do not maintain a minimum balance in your account, the bank may charge you a penalty. This penalty can be imposed every month or every quarter.

Many times, banks give you some facilities like free ATM transactions, free net banking, etc. only when you maintain a minimum balance in your account. If you do not do this, you will not get the benefit of these facilities.

If you repeatedly pay a penalty for not maintaining a minimum balance, it can spoil your credit score. A credit score is very important for you to take a loan.

If you do not maintain the minimum balance continuously, the bank can also close your account.

Why is it necessary to maintain a minimum balance?

The bank also has to spend money to provide services to its customers. The bank gets this money from the minimum balance. Along with this, the minimum balance strengthens the position of the bank and it is able to provide better services to the customers.

How to maintain a minimum balance?

You can know how much minimum balance to keep in your account by visiting your bank's website or app.

You can avail the facility of auto debit in your savings account from your other account so that there is always a minimum balance in your account.

You can also maintain a minimum balance in your account by reducing your unnecessary expenses.

Benefits of maintaining minimum balance in a bank account

You need to maintain a minimum balance. With this, you can avoid penalties and take advantage of all the facilities of the bank. The more money you have in your savings account, the more interest you will get. Along with this, many banks also provide you with facilities like debit and credit cards, lifestyle benefits, reward points, and personal loans.