Thursday, November 19, 2015

What is the minimum balance required for HDFC savings account

I changed my job recently. My salary account at my previous company was with HDFC bank. Since, my EMI deduction happens from this account, I have only 2 options:

  • Maintain the HDFC account and pump in the EMI amount from other bank account
  • Give a mandate to SBI (from which the loan has been taken) to change the bank from which the EMI has to be deducted. The bank then will give you 3 forms (of different colours). You have to fill all the three forms and take it to the bank from which you want to deduct the EMI. The new bank will stamp on all the three forms. One will be kept by the new bank, one I have to submit it at SBI and other is for my reference. Only when these things are done, one should close the existing account from which the EMI is getting deducted (currently). On a safer side, watch two months if all the transactions are taking place as intended. Then close the account.
At this junction, I have chosen the easiest way :-)

However, you cannot simply deposit EMI amount and forget about it. HDFC bank has some mandate if you account is not salary account. In which case, you have to maintain a certain monthly balance with the bank. (Note: Somebody told me that after 3 successive months of not receiving the salary, HDFC will convert your salary account into savings account).

Now, along with EMI deposit (well before the EMI due date), I also have to maintain certain balance in the bank account.

For HDFC bank,
  • For regular savings account in urban area: min - 10,000
  • For regular savings account in rural area: min - 5,000
Of course, if you are reading this article, you reside in urban area and will have to keep 10k as minimum balance.

1 comment:

  1. Close the HDFC account immediately. Transfer the EMI amount directly to SBI from new bank account on EMI date or a day before.