Banks communicate the required minimum balance to customers, and if the balance falls below this threshold, the bank may levy charges to cover the additional costs of maintaining the account.
Banks measure and enforce the minimum balance in different ways. If the account falls below the minimum balance it may be assessed fees, denied interest payments, or closed.
What is a Basic Account? A Basic Account is a type of BDO account which can be easily opened through the BDO Pay app or in the branch. It does not require initial deposit nor minimum maintaining balance. Once you have a Basic Account, you can link it to the BDO Pay app to enjoy the app's features.
BDO reserves the right to close the account if the Depositor has handled his account in a manner not satisfactory to BDO and/or if the Depositor draws checks against insufficient funds and/or uncollected deposits and any two (2) of such checks are presented to BDO within a 30-day period.
Falling Below Minimum Balance Fee will be collected if account falls below the required minimum MADB for two consecutive months. Account Dormancy Fee will be collected if account is dormant and falls below the minimum MADB. A savings account is dormant if it has no client-initiated activity for one (1) year.
An Account with zero balance is liable to be closed by the Bank without prior notice.
Myth About Automatic Closure:
Contrary to the layman's opinion, the zero balance itself does not automatically close the very day of the zero balance. The dynamic nature of business always makes banks look at this as a cyclical fluctuation; they may normally see periodic declines to zero on any given date.
Effective March 1, 2024, your BDO Installment Card's Minimum Amount Due will be the sum of the following: 3% of the Outstanding Balance (less Installment, Cash Installment Amortizations and over-limit amount, if any) or ₱850, whichever is higher. Installment Amortization.
If your account goes below the minimum required balance, a number of things can happen. In some cases, the bank may draw money from a linked savings account to cover the shortage. However, you might be charged a low-balance fee, a monthly maintenance fee, or lose your ability to earn interest for the month.
RCBC iSave is a virtual, easy-to-open savings account with tiered interest rates. Application is fast with no minimum initial deposit and zero (0) maintaining balance. This is perfect for anyone who is looking for a virtual savings account.
The Bank may impose and collect service charges and/or maintenance fees on Accounts, whether active or dormant, where the Account balances: (i) have fallen below the required minimum monthly ADB, for dormant accounts; and (ii) have fallen below the required monthly minimum ADB for at least two (2) consecutive months, ...
If you don't make your minimum payments, you'll likely be charged late fees, and could see an impact to your credit score. Eventually, after so many missed payments your account could possibly be reported as delinquent and closed by the issuer.
What it is. Some banks require you to maintain a certain minimum balance in your account. For example, you could be required to keep a minimum of $100 in your account at all times. If your balance falls below that amount, you end up with a fee.
If you don't have sufficient balance in your savings account to deal with unexpected expenses, it can affect your credit score. This will especially be noticed when you use your credit card to make debt payments instead of using a savings account balance.
When an individual opens a savings bank account, he/she is required to maintain the minimum balance in the account as per the bank's policy. If the minimum balance in the account is not maintained, then a penalty will be levied by the banks.
Accounts with zero balance due to service charges or other causes may be closed by the BANK without prior notice to the Depositor.
Outcomes for Transferred Funds: Reversal of Funds: If the recipient's account is closed, the funds are automatically reversed back to the sender's account. Depending on the banks involved, this process can take a few days. Temporary Holding: In some cases, the recipient's bank might hold the funds temporarily.
Falling Below Minimum Balance Fee will be collected if account falls below the required minimum MADB for two consecutive months. Account Dormancy Fee will be collected if account is dormant and falls below the minimum MADB. A savings account is dormant if it has no client-initiated activity for two (2) years.
BDO reserves the right to close the account if the Depositor has handled his account in a manner not satisfactory to BDO and/or if the Depositor draws checks against insufficient funds and/or uncollected deposits and any two (2) of such checks are presented to BDO within a 30-day period.
Affordable Maintaining Balance
Open and maintain for as low as ₱2,000.
Accounts without any cash flows (either deposits or withdrawals) for two (2) years will be placed in the inactive list. This will require you to visit your BDO branch of account to reactivate. If you have further questions, please call the BDO Hotline at +63 28631-8000.
In a regular savings account, banks levy a penalty for not maintaining the minimum account balance, but in a zero balance account, there is no penalty as you are not required to maintain a minimum balance.(subject to terms and conditions )
Most savings accounts require you to maintain a minimum balance in your account. On failing to do so, the bank can levy a penalty. To avoid such penalties and not lose out on savings account interest rates, ensure you have enough funds in the account to maintain a minimum balance.