ICICI Bank Introduces New Savings Account Charges

Following the footsteps of HDFC Bank, India’s largest private sector lender, ICICI Bank, has increased service charges on savings bank accounts and has also imposed a fee on mobile transfers.

Starting April 2012, ICICI Bank will charge a penalty of Rs 350 for non-maintenance of a minimum monthly balance. The bank earlier charged Rs 750 in a quarter. Customers in urban areas would have to maintain Rs 10,000 in regular savings accounts every month. Customers in semi-urban areas would have to maintain Rs 5,000 and those in rural areas would have to maintain Rs 2,000.

The minimum monthly balance requirement for silver savings accounts would be Rs 25,000, gold savings accounts Rs 50,000 and titanium savings accounts Rs 75,000. Holders of titanium savings account would also need to maintain at least Rs 5 lakh as total relationship value every month. This is in contrast to State Bank of India’s decision to waive any levy for failing to maintain the minimum balance in savings accounts.

ICICI Bank customers would now have to pay Rs 100, instead the earlier sum of Rs 50, to carry out a cash transaction at the base branch (this includes branches in the same city). No charges would be levied for the first four such transactions in a month, against the first 12 transactions in a quarter, as is the current norm.

If the minimum balance is not maintained, the charge for a cash transaction has been increased to Rs 100, after two free transactions at the home branch. The current charge for this is Rs 60 after three free transactions at the home branch. The bank would also charge Rs 350 for electronic clearing service (ECS) debit returns, against Rs 250 charged now.

Charges for holders of savings accounts in the erstwhile Bank of Rajasthan (which was acquired by ICICI Bank) have also been revised.

The private sector lender has introduced a fee of Rs 5 per transaction and has imposed a daily cap of Rs 50,000 for the interbank mobile payment service (IMPS).

You can get more details on ICICI Website.

I think with two biggest bank increasing their saving account charges, rest would follow. Its time to take a look at all the saving accounts we have and close the ones we do not need.