IOB Minimum Balance: Requirements and Charges Explained
IOB Minimum Balance Requirements and Non-Maintenance Charges
Indian Overseas Bank (IOB) savings account holders must maintain a minimum average balance based on their branch location. Falling below this limit results in a quarterly penalty. Here are the current thresholds and charges for 2026.
IOB Minimum Balance Requirements
| Branch Type | Minimum Average Balance | Penalty Per Quarter |
|---|---|---|
| Metro / Urban | Rs. 1,000 | Rs. 100 + GST |
| Semi-Urban | Rs. 500 | Rs. 75 + GST |
| Rural | Rs. 250 | Rs. 50 + GST |
These are applicable for standard savings accounts. BSBD and PMJDY accounts are exempt from minimum balance rules.
How Penalties Are Calculated
IOB calculates the Average Monthly Balance (AMB) based on daily closing balances. If the monthly average falls below the required minimum, a penalty is applied at the end of the quarter. GST at 18% is added to the penalty amount.
Accounts Exempt from IOB Minimum Balance
- Jan Dhan (PMJDY) accounts: Zero balance, no charges
- BSBD accounts: No minimum balance needed
- Salary accounts: Exempt while active employment salary credits continue
How to Avoid IOB Non-Maintenance Charges
- Check your balance regularly via the IOB Mobile app or SMS banking.
- Set up low-balance SMS alerts through the app or at the branch.
- Keep a buffer above the minimum threshold.
- Consider switching to a BSBD account if you frequently struggle with the minimum balance.
Key Takeaways
- IOB minimum balance ranges from Rs. 250 (rural) to Rs. 1,000 (metro/urban).
- Non-maintenance charges are quarterly with 18% GST on top.
- Jan Dhan and BSBD accounts have no minimum balance requirement.
- Use the IOB Mobile app to monitor your balance and avoid penalties.
Frequently Asked Questions
What is the minimum balance for IOB savings account?
It ranges from Rs. 250 for rural branches to Rs. 1,000 for metro and urban branches in 2026.
How much does IOB charge for not maintaining minimum balance?
Between Rs. 50 and Rs. 100 per quarter plus 18% GST, depending on branch type.
Is there a zero-balance account available at IOB?
Yes. BSBD and Jan Dhan (PMJDY) accounts at IOB have no minimum balance requirement.
How can I check if IOB has deducted a penalty?
Review your passbook, account statement, or recent transactions in the IOB Mobile app to see quarterly deductions.
