Skip to main content

How to maintain min account balance for multiple bank accounts?


Little savings - Average monthly balance
Maintaining a min balance is the big challenge these days. If we are not maintaining the AMB(Average Monthly Balance), the bank charges us heavily, ranges from 300 - 500 rupees per month.

In the case of having multiple accounts, it is a very cumbersome task to maintain min account balance(MAB) for all these accounts.

I have a total of 4 savings bank accounts, one with HDFC, SBI, Bank of Baroda and Standard chartered bank.

HDFC - The MAB is INR 10,000
SBI - INR 3,000
BoB - INR 1,000
Standard Chartered Bank - No MAB(Salary account)

First, based on the available funds(salary or other sources of income), I calculated how many days I need to keep my funds individually in these different accounts by using the MAB calculator.

For Eg, If your salary is 60,000, you need to keep these funds in the bank accounts as follows.

HDFC - 5-6 days to maintain MAB

littlesavings - how to calculate for HDFC MAB

 SBI - 2 days to maintain MAB

Littlesavings - SBI min bal

BoB - 3-4 days to maintain MAB

Littlesavings - bob min balance

And here is my strategy, on the first day after my salary credit, few funds will be parked in the HDFC bank (keep for 5 days) and move some funds to the BoB(my Loan Pay is on 4th of every month). And after 5-6 days, I will move the funds from HDFC to the SBI and will park for 2 days.

Since most of my bills to be paid are after the 7th of every month, by that time, I will try to meet the Min Balance of each account, and later bills will be paid.

Littlesavings - How to save money from min bal penalty

The idea is simple that calculate your MAB days for each account based on your available funds and try to accommodate the necessary funds between your payments.