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Minimum Balance to Avoid Monthly Fee
The least amount of money that you can have in a bank account without incurring a monthly fee. Not all bank accounts have minimum balance requirements, but they have become increasingly common following the Durbin Amendment, which made checking accounts less profitable for banks. Of the bank accounts that do have some sort of minimum balance stipulation, some require that all accountholders maintain balances above this threshold in order to avoid a penalty fee, while other take a reverse approach, allowing consumers who meet balance requirements to avoid standard monthly charges.
While it's important that you familiarize yourself with all of the fees and features of any financial product before submitting an application, any minimum balance requirement should be of particular importance, as your ability to meet it could significantly affect the ultimate cost of a particular product. When considering your ability to meet a minimum balance requirement, it's important that you consider your typical habits as well as how a downturn in the economy or job loss would affect you. People make important financial decisions with the best-case scenario in mind too often.