ICICI New Savings Account Users MAB Updated - August 1st 2025

[KGSIPO]

ICICI bank has increased minimum balance requiredfor savings account in metro and urban to Rs.50000 from Rs.10000.
Atrocious
When PSU banks making the required avearage balance to zero, ICICI increasing it

 

[SSquad]

ICICI Bank shuns on the mass and bets on the rich.

Monthly average balance on savings account:
Metro and urban locations, ₹50000.
Semi urban, ₹25000.
Rural, ₹10000.

Source (ET Prime) https://economictimes.indiatimes.co...ss-bets-on-the-rich/articleshow/123195855.cms

(Business Today) https://www.businesstoday.in/person...s-from-rs-10000-to-rs-50000-488692-2025-08-09

The bank has already updated their website to reflect these changes.



For the Customer: Existing features of the previous 10k MAB account.

For the Bank: It will increase the low cost deposit base, for better NIMs (Net interest margin). Profitability and business growth.

 

[TECHXYZ]

ICICI Bank’s updated Schedule of Charges introduces a major shift for metro and urban customers: The Minimum Monthly Average Balance (MAB) for new Regular Savings Accounts is now ₹50,000.

Check Link- https://www.icicibank.com/interest-rates#service-charges

What makes this change more significant is the shrinking set of options — many savings account variants that previously offered flexibility, niche benefits, or lower MAB requirements are now discontinued for new account opening.

📋 Discontinued for New Customers (from 1st August, 2025)​

As per the latest schedule, the following savings account variants are no longer available for fresh openings:

• Premium & Relationship Programs: Family 360 Banking, Wealth & Private Banking, Prime & Prime Pro Program, Privilege Banking Accounts (Non-Senior Citizen, Senior Citizen).
• Youth & Student Accounts: Campus Power Savings Account, Bank@Campus Account, Smart Star Savings Account (Regular, Wealth, Without Guardian Consent), Young Star Savings Account (Regular, Wealth, Private Banking, Family 360).
• Senior & Pension: Senior Citizen Regular Savings Account, Pension Accounts.
• Thematic & Niche Offerings: Advantage Woman Savings Account, Privilege Accounts – Advantage Woman, Salute Doctors Account, Asset Linked Savings Account, AURA Savings Account.
• Premium Variants: Gold Savings Account, Gold Privilege Savings Account, Silver Savings Account, The One Savings Account, Insta Save Premium Savings Account.
• Community & Special Purpose Accounts: Self Help Group Accounts, Self Help Group sourced through Business Correspondence, No Frills Account.
• Linked & Specialized Accounts: Savings Accounts Linked to Family ID, Broking IDirect Linked Savings Account, BizSavings Account, Easy Receive Savings Account, Freedom Savings Account.
• Legacy Accounts: Regular Savings Account (old variant), certain Privilege & Prime formats.

🔴 The Negative Side (for New Customers)

1. Reduced Flexibility for New Customers
   Many discontinued products catered to niche segments — women, students, doctors, rural groups, and community banking — often with lower MAB or tailored benefits.
2. Higher Entry Barrier
   With fewer low-MAB accounts available for new openings, the ₹50,000 MAB urban regular savings account becomes the default for many, increasing the financial threshold to start banking with ICICI.
3. Exclusion Risk
   Students, early-career professionals, and low-income customers now have fewer entry-level options unless they opt for Basic Savings Bank Deposit Accounts (BSBDA) or student accounts (post-August 2025 variant).

🟢 The Positive Side (for New Customers)

1. Streamlined Product Line
   By consolidating products, ICICI may be aiming for a simpler, more premium-focused portfolio — potentially improving service quality for existing account holders.
2. Higher-Value Customer Targeting
   The change aligns with premium banking strategies seen across the industry, where customers maintaining higher balances enjoy priority services, higher limits, and exclusive perks.
3. Legacy Account Holders Retain Benefits
   Customers who already hold discontinued accounts can generally continue under existing terms, avoiding the higher MAB unless they switch products.

💡 Final Thoughts

The MAB increase to ₹50,000 for urban/metro regular savings accounts might not have stung as much if more alternative account types were still open for new customers.
Instead, the simultaneous discontinuation of multiple variants means fewer pathways to low-cost banking within ICICI Bank.

For prospective customers, the choice now is clearer but narrower:

• Maintain a higher balance and enjoy premium benefits.
• Opt for BSBDA or student savings accounts (if eligible) for a no/low MAB option.
• Explore other banks for more flexible requirements.

This move strengthens ICICI’s premium positioning — but at the cost of entry-level accessibility.