Why is My Bank Charging Account Maintenance Fees and Can I Avoid Them?
Disclaimer: This article is for general information/education and is not investment advice. The information is shared in good faith and for general informational purposes only. Ujjivan SFB does not make any representations or warranties regarding the accuracy, completeness, or reliability of the content.
August 20, 2026
A bank account maintenance fee may appear small, but repeated charges can reduce your balance over time. Banks may levy maintenance-related charges on both savings and current accounts. The amount depends on the account variant, balance requirement and services included.
This article explains common maintenance fees, MAB and QAB requirements, and ways to reduce or dispute the charges.
What is the Bank Charging You For?
A bank maintenance fee is not one standard banking charge. It may refer to:
Check the transaction narration in the statement. Descriptions such as "AMB charge", "MAB shortfall", "AQB charge" or "debit card AMC" can help identify the deduction.
How Do Minimum-Balance Charges Work?
Banks may require customers to maintain a Monthly Average Balance (MAB), Quarterly Average Balance (QAB) or Average Quarterly Balance (AQB). The average is generally calculated using each day's closing balance, not only the amount available at the end of the month or quarter.
For example, if an account requires an MAB of ₹10,000, maintaining ₹10,000 for only the last few days may not be enough. A low balance during the rest of the month can bring the average below the requirement.
1. Savings Accounts
The minimum balance for a savings account depends on the account variant. RBI permits banks to set these requirements. You can check the fees and charges here.
See the RBI guidelines on minimum-balance charges.
2. Current Accounts
Current accounts may also require Monthly or Balance requirement. The required balance and shortfall charges are often higher because these accounts are intended for frequent business transactions. Current account charges primarily depend on the bank's Schedule of Charges and the terms accepted when the account was opened.
How to Identify the Exact Breakdown of Bank Charges or Maintenance Fees?
To identify the exact bank charges or maintenance fee, start by checking:
How to Avoid or Reduce Maintenance Fees?
Maintain the required average balance with a reasonable buffer. This can help when automatic payments or other debits reduce it unexpectedly. If the requirement is too high, ask whether the account can be converted to a lower-tier variant. Businesses can similarly compare current accounts with lower MAB requirements.
Review paid services linked to the account. You may be able to cancel an unused debit card, premium package, physical statement facility or other add-on. Salary accounts are often offered without a balance requirement while regular salary credits continue. If those credits stop, the bank may convert the account into a regular savings account. Check the conversion terms and the new minimum balance. It may also help to stay within free cash, cheque, ATM and branch-transaction limits. Formally close unused accounts instead of leaving them with a low balance.
Final Thoughts
Bank maintenance fees may arise from balance requirements, transaction limits or paid account services. Identifying the exact charge is the first step. Reviewing the account variant, maintaining the required average balance and removing unused services can prevent many recurring deductions.
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