ICICI Bank Hikes Minimum Savings Account

ICICI Bank Hikes Minimum Savings Account Balance: What It Means for You

Updated: August 9, 2025

In a major shift, ICICI Bank has raised the minimum monthly average balance (MAB) requirement for new savings accounts across India. Accounts opened from August 1, 2025 now require significantly higher balances:

• Metro & Urban Areas: ₹50,000 (up from ₹10,000) — a 5x jump
• Semi-Urban Areas: ₹25,000 (previously ₹5,000)
• Rural Areas: ₹10,000 (up from ₹2,500)

If you don't meet these thresholds, you could face a penalty of 6% of the shortfall or ₹500 whichever is lower. For context, it’s only the new accounts affected; existing account holders remain unaffected.

Here’s Why It Matters

This marks ICICI Bank’s first upward revision since 2015 a clear signal that the bank is repositioning toward a more upscale clientele, possibly to reduce servicing costs or align focus with higher-margin customers.

This change also comes at a time when public sector banks are rolling back MAB requirements a sharp contrast that highlights the growing divide in Indian retail banking.

What Customers Are Saying

Many customers have taken to social media to express outrage. One user on Reddit shared that branches were asking for exorbitant deposits — sometimes as much as ₹1 lakh — just to open a basic savings account.  Comments ranged from frustrating to outright disgusted:

“ICICI bank is very classist” – “They do that... go to another bank.” 

Another post about a senior citizen trying to open a joint account went viral after staff insisted on a ₹1 lakh balance only for customer care to confirm such a rule doesn't exist.

These real experiences underline the growing concern: that basic banking is becoming exclusive and costly especially when RBI mandates access for low-income groups.

How It Affects You

1. New Account Applicants: If you're planning to open a new account, especially in a metro or urban area, check the balance terms carefully. ₹50,000 MAB is not pocket change for many, it surpasses monthly earnings.

2. Existing Customers: You’re safe your account terms remain unchanged. The new MAB doesn't apply to you unless you close and reopen your account post-August 1.

3. Alternatives: Basic Savings or zero-balance accounts offered by PSU banks like SBI and others may serve you better if you're seeking low-cost banking. ICICI’s new rules may push lower-income customers to explore such options.

Inside Look: Why ICICI Did This

No official explanation yet but industry observers point to cost-cutting on small accounts, lower servicing margins, and strategic focus on affluent clients. ICICI might be nudging customers toward higher-fee products or consolidated family banking relationships.

Should You Be Worried?

It depends:

• If you’re considering a new ICICI savings account  absolutely check the terms and reassess if you can meet the MAB.
• If you're fine with your current account or use salary/BSBDA accounts feel free to stay put.
• For students, low-income groups or casual savers this change might tip the scales in favor of zero-balance accounts elsewhere.

At a Glance: Pros & Cons

Pros	Cons
Possible premium services for high-balance customers	Excludes those with limited savings
Streamlined accounts to reduce low-margin processing	Financial inclusion may suffer
Higher deposits may boost bank’s liquidity	Other banks offer better zero-balance alternatives

Final Thoughts

ICICI Bank’s new MAB policy is a bold move carving out savers with thick wallets and letting go of smaller account holders. It’s a reminder that banking choices matter: if you don’t meet the criteria, shop around or consider zero-balance accounts.

This policy may also reignite debates around financial inclusion, and whether private banks are diverging from their role as universal service providers.

One thing is clear: if ICICI is on your radar, now’s the time to weigh your options — carefully.

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Sources: Economic Times, NDTV, Times of India, Moneycontrol, ANI, and real customer experiences from Reddit.