Questions about Premium Bank Account Eligibility, Downgrade & Charges

[bhavyakjain]

Hi everyone,

I have some doubts about premium savings account tiers that depend on salary credit or NRV/deposit criteria.

If someone later lets the relationship become passive/dormant (salary stops, NRV drops, FD withdrawn, etc.), I'm trying to understand what typically happens.

1. Account Downgrade
a. Do banks automatically downgrade the account once eligibility isn’t met?

2. Zero MAB after downgrade
If the zero-MAB benefit is removed and the SA balance is kept at zero:
a. Are non-maintenance charges levied?
b. Can the bank close/deactivate the account for having zero balance?

3. Zero balance + an FD
If SA balance is zero but a small FD is still maintained:
a. Will MAB penalties still apply?
b. Can the bank still try to close/deactivate the account?

4. LTF premium debit/credit cards
If premium chargeable cards were given as LTF due to the premium account tier:
a. After downgrade, can the bank start charging annual fees?

5. Using the downgraded/basic account again
If the customer later revives the account (regular usage, deposits, transactions) without upgrading back to premium:
a. Any hidden charges/issues when becoming active again?
b. Any impact on MAB/NRV calculation or treatment of the account?

6. Future upgrades or applying new cards
If the customer later tries to re-upgrade or apply for new premium cards:
a. Do past downgrades cause any internal flags?
b. Any impact on eligibility for LTF offers or premium products?

Examples :
1. HDFC Imperia – Platinum DC / Regalia Gold CC
2. Axis Burgundy – Burgundy DC / Select CC
3. ICICI Wealth – Wealth DC / Sapphiro CC / Emaralde CC
4. IDFC FIRST Wealth – Wealth DC / Wealth CC

Anyone who has gone through a downgrade or maintained a dormant premium account—any caveats, clawbacks, or unexpected issues to watch out for?

Thanks in advance!

 

[bekifaayatifan]

1. a. Yes.
2. a. Yes.
b. No.
3. a. Yes & No. Taking the case of HDFC Imperia - MAB should be 10 lakhs in Savings Account to be part of program. There is no penalty for non maintaining of MAB. You can also maintain a retail liability value of 30 lakhs to be eligible for the program. i.e. if your FD is 30 lakhs, your Savings Account balance can be kept at zero and you will still be part of the Imperia program. If either conditions are not met, bank can downgrade your account. Lower tier accounts may or may not have penalties for non maintenance of AMB. You mentioned keeping a small FD and if it doesn't fulfill the TRV (Total Relationship Value) of the lower tier, penalty charges may be applicable.
b. No.
4. a. Yes.
5. a. Yes.
b. Yes.
6. a. No.
b. No. Taking the case Axis Burgundy - Initial funding is 5 lakhs. Most branches will give you a 5 lakhs LTF Credit Card without any Credit check.