Before the world got hooked on to fancy investment plans and mutual funds, savings banks were considered the safest way to park one’s earnings. A simple tool which was easy to operate and maintain, a savings bank account served as an ideal way to avoid thefts of money.
These deposits over the years went on to become one of the biggest instruments of savings, thanks to the easy terms and high returns offered by banks. A good example of a high return on savings bank account is that of Allahabad Bank.
The interest is calculated on the basis of the daily balance of the account, subject to existing rate, and is credited on a quarterly basis.
The savings bank accounts offered by Allahabad Bank have different minimum balance limit for different areas and the division is as follows:
- For bank branches in rural areas, the minimum balance is Rs 500, with Rs 100 extra for a Rs 100 for a cheque book.
- For bank branches in urban areas, the minimum balance amount is Rs 1,000 with Rs 100 extra for a 20-leaf cheque book.
- The extra charge for a cheque book is done away in a savings bank account for pensioners.
Failure to maintain minimum balance
Allahabad Bank levies a small fee on the client if one fails to maintain the minimum balance.
- With cheque book: In branches in rural areas, the charges are calculated using the formula: % of shortage in minimum balance x Rs 90
- With cheque book: In branches in urban areas, the charges are calculated using the formula: % of shortage in minimum balance x Rs 125
- Without cheque book: In branches in rural areas, the formula is: % of shortage in minimum balance x Rs 40.
- Without cheque book: In branches in urban areas, the formula is % of shortage in minimum balance x Rs 80.
If one wants to close a savings bank account, Allahabad Bank charges a fee of Rs 250 if one avails the cheque book facility and a fee of Rs 175 if one does not.