The charges banks may levy on your savings account
Though you may have opened an account without paying any fees, you need to be aware of charges that can be associated with it
The basic product that most of us associate with in the formal banking channel is a savings bank account. For most of us, it is our first relationship with a bank. Though you may have opened a savings account without paying any fees, you need to be aware that there are charges that can be associated with it. You can get details of all these charges and fees on your bank’s website. Here is a look at some of them.
Minimum monthly average balance: Most banks ask you to maintain a minimum monthly average balance in your savings account. The minimum amount you need to maintain usually varies from bank to bank and also depends on where you live. For metros and urban areas, the amount you need to maintain would be higher compared to rural locations. In case you don’t maintain the required balance in a month, you could be charged for non-maintenance of balance. These charge can be Rs50-450 per month.
Cash transaction charges: In case you deposit or withdraw cash from your bank branch more than the prescribed number of times in a month, you would be charged a fee: for instance, ICICI Bank Ltd would charge Rs5 per Rs1,000; subject to a minimum of Rs150. There is also a limit on the amount you can deposit. For self, there is no limit; for third parties there is a limit of Rs50,000 per day.
ATM charges: This too varies from bank to bank. Many banks allow first five transaction on own bank ATMs free of charge. After fives transactions, every financial transaction could cost you Rs15-20, plus service tax. If you withdraw money from other banks’ ATMs, charges will depend on where the withdrawal was made. In a metro location, you could get up to three free transactions and in non-metros, up to five transactions. There will also be a daily cash withdrawal limit on your debit card. Plus, you would have paid a joining fee of about Rs150 for the debit card, which comes with your savings bank account.
Cheque: Most banks give you certain number of cheque leaves for no charge. But if you need more, you may have to pay extra. In addition, transferring money by cheque may also entail charges. If you deposit an outstation cheque, you may have to pay Rs15-250 for the transaction, depending on the amount.
Banks revise these charges periodically. To stay updated, keep a tab on all communications received from your bank, including bank statements. Or, you can read about them on your bank’s website.