Amidst a recovering economy and dropping savings interest rates, Axis Bank has increased its monthly balance requirements, as well as SMS charges, cash withdrawal charges, non-maintenance fees, and transaction fees, for nearly all savings account segments.
The bank has increased the requirement for maintenance of an average monthly balance from ₹10,000 to ₹15,000 for Easy Access, Small Basic and other foundational savings accounts. Whereas, for Prime and Liberty accounts belonging to urban/metro residents, the monthly average balance has been increased to a whopping ₹25,000. The new maintenance rates will be effective from 1st May 2021.
Along with this, the bank has also increased the charges for SMS alerts from ₹5 to ₹25. The new SMS alert charges will be applicable on most saving schemes accounts from July 1st.
Furthermore, the bank has also introduced non-QAB maintenance penalty for Prestige account holders. As of the writing of this article, Prestige account holders are required to maintain ₹75,000 in quarterly balances. The customers will now be charged ₹10 per ₹100 shortfall of AQB which can extend up to ₹800. Changes on Prestige savings accounts will also be liable from 1st of May, 2021.
Axis Bank’s revision of average balances is in-line with many private banks increasing their account tarrifs. Last year, DBS revised its monthly balance requirement from ₹0 to ₹5000.
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