BANKING AFFAIRS

Detailed explanation-1: -Many banks and credit unions require that you keep a minimum amount of money in a checking or savings account. This is generally known as a minimum balance requirement. In some cases, maintaining a minimum balance may let you reduce or eliminate fees or earn a higher APY.

Detailed explanation-2: -There is no limit on the penal charges that a bank will charge for the non-maintenance of the minimum balance. The charges have to be approved by the bank’s board. Charges will vary from bank to bank and from branch to branch as well. Penalty charges for branches in semi-urban and rural areas will be lower.

Detailed explanation-3: -But, you can often avoid paying this fee by opening up both a checking and savings account at the same institution, maintaining a minimum balance in your account, making a certain number of transactions each month or arranging for direct deposit.

Detailed explanation-4: -Bank of America Core Checking Account has a $12 Monthly Maintenance fee which is waived with at least 1 direct deposit of $250 each month or maintain a minimum daily balance of $1, 500 or more.