HSBC India has revised the minimum average monthly balance for its basic savings account, other than the no-frills account and corporate salary account, to Rs 150,000 with effect from January 2014. The average monthly balance is a combination of savings account, current account and fixed deposit balances. The customer will have to pay a charge if he fails to maintain the average monthly balance. The minimum balance requirement for the savings account is only waived if it is a corporate salary account or the customer has a mortgage relationship with the bank and equated monthly instalments are debited from this account towards servicing of the housing loan availed from the foreign lender. The waiver will be valid only during the loan repayment period. Also, customers holding multiple savings accounts with the bank will have to maintain the minimum balance requirement separately for each account if the account operating style is different. The average monthly balance for the bank’s savings account was Rs 75,000 earlier. It was a combination of savings account, current account and fixed deposit balances, including a minimum monthly balance of Rs 25,000 in the savings or current account.
The bank offers its savings accounts to ‘mass market’ customers, while it has two other products for the affluent segment – ‘HSBC Advance’ and ‘HSBC Premier’. In HSBC Advance, a customer has to maintain a quarterly total relationship balance of Rs 3 lakh in a combination of savings and current account balances, term deposits, holdings in demat account with the bank, investments and life insurance through the foreign lender. For HSBC Premier customers the total relationship balance is Rs 25 lakh on a quarterly basis. The bank currently has 50 branches across India.