Different types of accounts offer different types of incentives.
Your standard free checking account won't have a minimum balance, but also isn't going to be earning any interest worth mentioning.
On the other hand, there are account types with higher interest earnings rates or other perks which require that you maintain a minimum balance. The minimum balance ensures that the bank is able to use the money in its other investments, which is why you are rewarded with higher tier perks.
Dropping below the minimum balance means that you haven't kept up your end of the bargain, so to speak. For example, the Way2Save savings account has a small monthly fee which is waived as long as you maintain a $300 minimum daily balance, or have automatic transfers, are under 24 years old, etc. The "Platinum" savings account tier has a $12 monthly fee which is waived only if you maintain $3,500.
It is of course worth noting that the "perks" of these savings accounts are practically worthless- the earnings interest rates are far below inflation.
Your standard free checking account won't have a minimum balance, but also isn't going to be earning any interest worth mentioning.
On the other hand, there are account types with higher interest earnings rates or other perks which require that you maintain a minimum balance. The minimum balance ensures that the bank is able to use the money in its other investments, which is why you are rewarded with higher tier perks.
Dropping below the minimum balance means that you haven't kept up your end of the bargain, so to speak. For example, the Way2Save savings account has a small monthly fee which is waived as long as you maintain a $300 minimum daily balance, or have automatic transfers, are under 24 years old, etc. The "Platinum" savings account tier has a $12 monthly fee which is waived only if you maintain $3,500.
It is of course worth noting that the "perks" of these savings accounts are practically worthless- the earnings interest rates are far below inflation.