Understanding AMB Charges HDFC

AMB is the acronym for Average Monthly Balance. Most of the banks require you to maintain a certain balance in your account over the period of a month. This is known as the average monthly balance. In case you fail to maintain the required balance, AMB charges plus some additional taxes are applied to you. In this article, we will talk specifically about AMB charges HDFC, and how you can avoid a negative balance in your account by being aware of it.

What are AMB Charges and How Are They Calculated?

AMB is the average balance that a bank requires you to maintain in your savings or current account over a specific period of time. Usually, this particular time period is one month or a quarter of a year.

This AMB charge is applied by the bank when you fail to maintain the average monthly balance that the bank specifies. Now, this balance may differ from account to account depending on the bank, account type, and minimum balance requirement.

But the question is, how are these charges calculated? HDFC takes the sum of the closing balance for all days in the month and divides it by the number of days in the month. After all of this is calculated, HDFC Bank will notify you in two months that you need to maintain the minimum balance. If you are not able to maintain this balance, this charge will be deducted directly from your savings account.

What are AMB Requirements in HDFC Bank?

The AMB requirements differ depending on factors like banks, account variants, and areas. Let me tell you about this in more detail with the help of a table:

Usually, HDFC does not have any AMB requirements for salary accounts which makes them an attractive option for those who work in corporate.

In case you are unable to maintain the minimum balance according to your type of account then you will be subject to a non-maintenance charge of 6% of the shortfall from the average balance requirement or Rs.600 whichever is lower.

How Can You Maintain The Average Monthly Balance in Your Account?

These charges can easily be avoided if you monitor your account regularly and stay updated. Here are some ways you can maintain your balance to avoid AMB charges HDFC:

• Opt for the sweep-in facility: HDFC bank has a sweep-in and sweep-out facility that is available with fixed deposits on specific variants of Savings Accounts. With this facility, your FD will automatically be dissolved and the amount to meet the shortfall will be deducted and then deposited in the Savings account.
• Set up automatic instructions for transfers: With HDFC Bank, you can even set standing instructions for the scheduled transfer of funds to your savings account. Let me explain this better, for instance, if you hold a salary account with another bank, you can set up automatic transfers for a specific amount on a certain date so that your savings account has enough balance.
• Keep track of your balance: The best way to avoid AMB charges at HDFC Bank is to keep track of your expenses and bank balance. You can easily do that with the help of UPI apps and net banking.

Wrapping Up

This was all about AMB charges HDFC Bank. You can easily avoid these charges by being aware of the bank’s policies, rules, and regulations. These charges are updated from time to time, so always monitor your bank account and track your balance. If you have any queries, you can easily contact the HDFC bank’s customer care service to assist you.

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.

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