Minimum Balance

The minimum balance for a bank account is the amount of money that a customer must have in their account to be eligible for certain services, such as keeping their account open or earning interest. After a stock is bought on margin, the minimum balance serves as the account’s maintenance margin requirement. For margin accounts, it represents the minimum deposit sum before margin trading is permitted.

There is frequently a minimum quantity of cash that must be kept in an account when a person creates one with a bank. Typically, checking accounts must have this minimum amount. The justification for the minimum balance differs for each bank. 

A minimum amount may be required by some banks only to open an account, while others may need it in exchange for preferential treatment and extra services. Various methods are used by banks to determine and enforce the minimum balance. The account may be charged fees, have interest payments withheld, or even be terminated if the minimum balance is not maintained.