Understanding AMB Charges HDFC

If you have an HDFC Bank account and suddenly see money deducted as "AMB charges", this article will make everything clear. AMB stands for Average Monthly Balance. It simply means you have to keep a certain average amount in your account every month. If you don’t, HDFC will fine you; this fine is called the AMB charge. Here we will understand AMB charges HDFC, which helps you not to lose money for no reason.

What Is AMB and How HDFC Calculates It

HDFC doesn’t care how much money you have every day; it looks at the average balance over the whole month. Imagine your account is a thali (plate). Some days, you add more rice (money), some days less. HDFC just checks how full your plate was on average.

Formula:
AMB = Total of closing balances of each day ÷ Number of days in the month

For example,

AMB = (₹12,000×10 + ₹5,000×10 + ₹3,000×10) / 30 = ₹6,666

If HDFC needed ₹10,000, but your AMB is ₹6,666, you will be charged a penalty.

HDFC AMB Requirements by Account Type

HDFC doesn’t have one rule for everyone. It depends on:

• Your account type
• Your branch location (Metro, Semi-Urban, Rural)

Note: Salary accounts usually have zero balance requirements. If your company offers one, use it.

If you don’t meet the AMB, HDFC charges a non-maintenance fee. Penalty = 6% of the shortfall or ₹600, whichever is lower. Plus GST.

How to Avoid AMB Charges

Don’t want HDFC to keep eating your money for no reason? Follow these tricks:

• Keep a Little Extra: If HDFC says “Keep ₹10,000,” you keep ₹11,000. That extra ₹1,000 can save you from a fine if you mess up later.
• Don’t Drain Your Account After Salary: Got paid? Great. But don’t remove all the money at once. Leave some cash inside, or you’ll drop below the limit and get fined.
• Turn On Alerts: Go to your HDFC App and set a low balance alert. It’ll ping you when money gets too low. Free warning = Free chance to fix it.
• Use a Zero Balance Account: If AMB rules are too annoying, just open a Zero Balance Account. No minimum balance, no fines, no stress.
• Link a Fixed Deposit (FD): If you have an FD with HDFC, link it to your account. It counts toward your AMB, even if you don’t have full cash in the account.
• Check Balance Weekly: Every Sunday, take 30 seconds to check your balance. You’ll always know where you stand and stay one step ahead of AMB charges.

Easy Ways to Maintain AMB in Your HDFC Account

Want to stop HDFC from charging you for a low balance? Just follow these 3 simple tricks:

1. Use Sweep-in Facility

If you don’t have enough money in your account, HDFC will break your fixed deposit (FD) and add money to your account automatically. But this only works if:

• You have an FD linked to your account
• Your account type supports sweep-in

Ask your branch to activate it.

2. Set Auto Transfers

Got another bank account where your salary comes in? Just tell that bank to send some money automatically to your HDFC account every month. It’s called a Standing Instruction. Set it once, and forget it.

3. Track Your Balance

Use any of these to check your money:

• HDFC Mobile App
• Net Banking
• Paytm, PhonePe, Google Pay

Just open and check once a week. If the balance is low, add money before the month ends.

Also, check: How to Check E-Mandate in HDFC Bank

Conclusion

In conclusion, AMB charges = Fine for not keeping the average money. Treat your bank account like your fridge. Don’t let it stay empty too long, or the bank will charge rent. Keep some cash in it. Track it once a week. Or go for a zero-balance account if this is all too much.

About the Author

Khushi Singla

As a writer, my task is not only writing but making tough topics easy to understand. I have the ability to connect with the readers and deliver them the best piece of writing.

View All Articles by Khushi Singla

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