Bandhan Bank Cuts MAB Requirement For Standard Savings Account From February 1, 2026

Bandhan Bank has announced a key change for its savings account customers. The bank will reduce the Monthly Average Balance (MAB) requirement for its Standard Savings Account from ₹5,000 to ₹2,000, effective February 1, 2026.

This move will lower the minimum balance that customers need to maintain in their accounts to avoid non-maintenance charges. The change is expected to benefit a large number of retail customers, especially those who prefer low-balance savings accounts.

What Monthly Average Balance Means

Monthly Average Balance refers to the average amount maintained in a bank account over a month. It is calculated by adding the end-of-day balance for each day of the month and dividing it by the total number of days.

If the calculated average falls below the bank’s prescribed limit, customers may have to pay penalty charges. By reducing the MAB requirement, Bandhan Bank has made it easier for customers to maintain their accounts without worrying about penalties.

Impact On Existing And New Customers

Once the revised rule comes into effect, customers holding a standard savings account will only need to maintain ₹2,000 as the monthly average balance, compared with ₹5,000 earlier. This change applies to both existing and new account holders under this account category.

The lower balance threshold could help improve account affordability and attract customers looking for basic banking services with fewer balance-related constraints.

Savings Account Interest Rate Structure

Bandhan Bank continues to offer a tiered interest rate structure on domestic and non-resident rupee savings deposits. Interest on savings accounts is calculated daily on end-of-day clear balances and credited quarterly.

As per the interest rate chart effective December 25, 2025, balances of up to ₹1 lakh earn 2.70% per annum. Incremental balances above ₹1 lakh attract higher rates depending on the slab.

Balances above ₹5 lakh and up to ₹10 lakh earn 4.85%, while balances above ₹10 lakh and up to ₹50 lakh earn 5.35%. Deposits above ₹50 lakh and up to ₹5 crore earn 5.55%, and balances between ₹5 crore and ₹250 crore earn 6.00% per annum.

For very large balances, deposits above ₹250 crore and up to ₹500 crore earn 6.15%, while balances between ₹500 crore and ₹750 crore earn 6.85%. For balances above ₹750 crore and up to ₹1,000 crore, the interest rate is linked to overnight MIBOR plus 0.85%. Amounts exceeding ₹1,000 crore earn 6.15% per annum on balances above ₹1 lakh.

Conclusion

Bandhan Bank’s decision to cut the MAB requirement for its standard savings account is a customer-friendly step that reduces the cost of maintaining an account. Combined with its tiered interest rate structure, the move is likely to appeal to retail customers seeking flexibility and ease of banking.

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