You may often hear the term settling balance when you want to open a savings account and wonder whether the hold amount is used by the bank?
Some banks apply a hold amount policy or a minimum balance in their customers' accounts. The minimum balance limit in this account is also often considered by prospective customers who wish to open an account at a bank. This is because some apply for a fairly high hold amount and cannot be withdrawn by their customers.
So, before you choose to open the right savings account, let's first understand the meaning of a hold amount and its function in this article.
What is the Hold Amount?
The hold amount is the minimum nominal set by the bank so that it remains in the customer's account. This balance will remain in the customer's account and cannot be withdrawn. The nominal deposit balance varies for each bank depending on the policies set by each bank.
The bank implements a hold amount policy to cover the bank's overhead costs in managing depositors. Overhead costs are routine operational costs in addition to saving costs, such as general and administrative costs, labor, rental costs, depreciation of office assets and equipment, and other costs.
Therefore, the hold amount policy for each bank is different, depending on each bank's strategy to increase its products' competitiveness. For example, if you open a savings account at MAS Mobile, a settling balance policy of only IDR 10,000 will be applied at Bank MAS.
Hold Amount Function
The hold amount is intended as a safeguard if one day, the customer does not want to use his account again and then wants to close the account, then the hold amount will be used to cover administrative costs for the account closing process.
From the understanding of the settling balance above, you need to know the bank's hold amount policy before opening an account because some banks apply a hold amount policy hold amount policy that is categorized as an active balance. Some apply a settling balance policy not included in the active balance.
So, have you decided where to open a savings account? At MAS Mobile, you can choose the MAS Savings account with a relatively low hold amount of IDR 10,000, so you don't need to worry too much about being unable to withdraw cash when your savings balance runs low.
Open a MAS Saving account now online in the MAS Mobile application!
