When evaluating your savings account’s bank statement, you may discover deductions you were unaware of. That’s because institutions charge you for specific services, such as chequebook issuance fees and others. In today’s post, we will discuss the most common bank fees and charges associated with a savings account. This will help you stay informed and identify unnecessary deductions or outgoing transactions.
Remember, both offline and online account opening is free, so set up your account conveniently without any initial costs. This allows you to start managing your finances promptly and efficiently. Now, let us take a look at the different savings account fees and charges:
Minimum balance charges:
For a regular savings account, there is a minimum balance required that you need to have on average every month. If you fail to meet this balance, the bank incurs certain charges. To avoid these fees, make sure you are aware of the Average Monthly Balance (AMB) requirement of your specific account.
Debit card charges:
You are issued a debit card to use the funds from your savings account. It lets you make online transactions, withdraw cash, make payments at stores, earn cashbacks on shopping, and much more. However, banks charge an annual fee for this service.
ATM charges:
Withdrawing cash by visiting the branch is no longer required. ATMs have facilitated smoother withdrawals. There are, however, limitations on the number of transactions you can make in a month. As per the Reserve Bank of India (RBI), banks allow at least five ATM transactions in a month. This is irrespective of the ATM’s location. Banks only charge for ATM charges if you exceed this limit.
Excessive withdrawal charges:
Again, there are restrictions on the number of transactions or withdrawals on your savings account. You must check them on the official bank website. If you exceed the set limit, the bank may charge you an excess withdrawal fee. Therefore, it is vital to check your transactions regularly to avoid these charges.
Transfer and wire transfer fee:
You can send money electronically or via bank, bearing these bank charges. To know the fee structure of Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT), Real-Time Gross Settlement (RTGS), and other services, you must check the bank’s website. Evaluate all the different transfer methods and explore lower-cost alternatives to avoid higher deductions.
Overdraft charges:
Certain accounts feature an overdraft facility. This means the account holder can spend over and above the bank balance. However, overdraft transactions levy substantial fees. To avoid this, you should always check the balance in your account before making transactions.
Card replacement charges:
If your ATM card is lost, stolen, or damaged, you can get another card. You can request one, and it will be delivered to your residential address. This may involve certain charges, so secure your card to avoid them.
Foreign currency exchange charges
Many cards allow holders to make international transactions. When you conduct transactions in foreign currency, such as making purchases, your account will be charged these fees. It is recommended that you opt for a multi-currency account or use cards with better foreign exchange rates.
Physical bank statement charges
These fees are imposed to get a hard copy of your bank statement attested by the bank. If you don’t want to issue a physical copy, you can always download an e-statement from the official website or mobile app of the bank.
Why do banks charge these fees and charges?
Banks are transparent when it comes to these charges. They levy these fees to support daily banking operations, cover administrative costs, and improve earnings. Every bank has a different fee structure. Ensure you check the list of bank charges and stay informed about specific banking processes.
Wrapping up
Turn the alerts on your bank’s mobile app to stay updated on any fees or deductions from your account. Also, so keep a check on your account’s transactions from time to time to avoid surprises. This will help you avoid unnecessary deductions from your account. You can, however, avoid certain fees like minimum balance and chequebook charges by opening a zero-balance digital account.
Nowadays, you can open a Z`ero Balance Savings Account from anywhere, using your Aadhar and PAN card. You can operate the account digitally without the hassles of visiting the bank branch through the mobile app. You also can avail virtual debit card to make purchases online on shopping platforms. The digital-first approach of many zero balance savings accounts makes them an attractive option for those who prefer online banking.
ThePrint BrandStand content is a paid-for, sponsored article. Journalists of ThePrint are not involved in reporting or writing it.