No more penalty for low balance in bank account: Canara Bank ends minimum balance rule on all savings accounts from this date

Synopsis
Canara Bank has announced a waiver of the Average Monthly Balance (AMB) requirement across all savings accounts, effective June 1, 2025.
Latest savings account interest rates: Comparison of ICICI Bank vs HDFC Bank vs Axis Bank vs YES Bank
No more AMB in Canara Bank Savings Bank Account: From when is this applicable
The new rule will be applicable from June 1, 2025, i.e., from tomorrow.“Starting June 1, 2025, no Canara Bank savings account holder will be penalized for not maintaining a minimum balance in their account. This marks a shift towards offering truly zero balance savings accounts for all customers,” said the bank in the press release.
Depending on the kind of savings account, bank customers were required to maintain a minimum Average Monthly Balance in their bank account. Penalty is levied by a bank if the bank customer fails to maintain the minimum average balance requirement. Every Canara Bank savings bank account user will now benefit from no penalty on minimum balance for all savings bank accounts.
What is the minimum balance that must be maintained in Canara Bank savings account?
The Average Monthly Balance (AMB) requirement in Canara Bank varies based on the branch location. Bank customers were required to maintain an AMB of Rs 2,000 for urban and metro branches, Rs 1,000 for Semi-Urban branches, and Rs 500 for rural branches.What is Average Monthly Balance requirement in a savings bank account?
Average Monthly Balance (AMB) is the minimum balance that must be kept in the bank account by a customer. If the bank account balance falls below the required balance, then banks levy a penalty for not maintaining AMB. The penalty depends on the type of savings account.Charges if minimum bank account balance is not maintained
Metro/Urban Branch: Charges of non-maintenance of minimum balance
AMB maintained in the account against the stipulated ₹ 2000/- | Charges per month for violation of AMB |
₹ 1999/- to ₹ 1500/- | ₹ 25/-+GST |
₹ 1499/- to ₹ 1000/- | ₹ 35/-+GST |
₹ 999/- and below. | ₹ 45/-+GST |
Semi Urban Branches: Charges of non-maintenance of minimum balance
AMB maintained in the account against the stipulated ₹ 1000/- | Charges per month for violation of AMB |
₹ 999/- to ₹ 700/- | ₹ 25/-+GST |
₹ 699/- to ₹ 400/- | ₹ 35/-+GST |
₹ 399/- and below | ₹ 45/-+GST |
Latest Canara Bank savings account interest rates
Canara Bank offers a savings account interest rate between 2.7 and 4% depending on the balance of the savings account. The rates are effective from May 19, 2025. . | Slabs | ROI(%) |
1 | For outstanding Balance of less than Rs. 50 Lakh | 2.7 |
2 | For outstanding Balance of Rs. 50 Lakh to less than Rs 5 Cr | 2.75 |
3 | For outstanding Balance of Rs. 5 Cr to less than Rs 10 Cr | 2.8 |
4 | For outstanding Balance of Rs. 10 Cr to less than Rs 100 Cr | 3.05 |
5 | For outstanding Balance of Rs. 100 Cr to less than Rs 200 Cr | 3.5 |
6 | For outstanding Balance of Rs. 200 Cr to less than Rs 300 Cr | 3.1 |
7 | For outstanding Balance of Rs. 300 Cr to less than Rs 500 Cr | 3.1 |
8 | For outstanding Balance of Rs. 500 Cr to less than Rs 1000 Cr | 3.4 |
9 | For outstanding Balance of Rs. 1000 Cr & less than Rs. 2000 Cr | 3.55 |
10 | For outstanding Balance of Rs. 2000 Cr & above | 4 |