Here’s a list of 5 most common hidden charges you may already be paying without even realizing:
1) Average monthly balance charges
All private banks in India ask account holders to maintain a minimum balance. If during a particular month, you overdraw money beyond this limit, banks charge a penalty of up to Rs. 250 per month. If for some reason, it is not possible to maintain a minimum balance, you can open an account with a public sector bank for many of them don’t have any minimum balance condition.
2) Bank visit charges
Do you keep count of monthly visits to your bank branch? If not, you should start now. Private banks charge a service fee for every visit beyond a specified limit. Many people are not aware of this, but those who make frequent deposits and withdrawals directly from banks should know.If the number of cash deposits and withdrawals from a branch is high, then the bank charges a cost for using services of additional staff (like cashier), tackling fake currency and paying for extra security. You can avoid paying this extra cost by limiting your visits to a bank. Try using an ATM for cash withdrawal instead of visiting your bank branch.
For deposits and cheque payments, make use of direct fund transfers via online banking.
3) ATM charges
Did you know that using an ATM also costs? You don’t pay anything for using your bank ATM, but are definitely charged for using other bank ATMs.
Usually, the first five transactions at other bank ATMs are free. On your sixth visit, the bank can charge up to Rs. 20 per transaction. The charges vary from bank to bank, but don’t exceed Rs. 20. Many banks also charge for replacement of a lost ATM card or regeneration of the PIN (Personal Identification Number).
4) National Electronic Fund Transfer (NEFT) charges
Transferring funds to any bank account in India over the internet is surely very convenient, but not without a price. Different banks can charge anywhere between Rs. 5 and Rs 25 per transaction. Although the charges are not very high, if money is frequently transferred, the cumulative amount at the end of the year could be huge. Using a cheque saves this cost.
5) Cheque transaction charges
As such, issuing and receiving cheque payments does not cost anything. But all is not as simple as it appears. If a cheque is returned without being paid, it carries a penalty. In case of intercity payment via cheque, a bank has to bear additional costs of clearing, which it draws out from the customer’s account. Asking a bank to withhold cheque payments also carries charges. For instance, Axis bank charges Rs. 100 every time you ask for holding a cheque payment. Requesting cheque books beyond an allowed quota too has a price. Banks usually charge customers Rs. 2 per cheque. This means, if you ask for a booklet with 50 cheques, it costs Rs. 100.
One can easily spare oneself from paying the numerous bank charges by simply being a little alert about the money deducted for banking services in the account. One can monitor ones account through online banking and always question the bank about any unfair charges levied for any services provided.
1) Average monthly balance charges
All private banks in India ask account holders to maintain a minimum balance. If during a particular month, you overdraw money beyond this limit, banks charge a penalty of up to Rs. 250 per month. If for some reason, it is not possible to maintain a minimum balance, you can open an account with a public sector bank for many of them don’t have any minimum balance condition.
2) Bank visit charges
Do you keep count of monthly visits to your bank branch? If not, you should start now. Private banks charge a service fee for every visit beyond a specified limit. Many people are not aware of this, but those who make frequent deposits and withdrawals directly from banks should know.If the number of cash deposits and withdrawals from a branch is high, then the bank charges a cost for using services of additional staff (like cashier), tackling fake currency and paying for extra security. You can avoid paying this extra cost by limiting your visits to a bank. Try using an ATM for cash withdrawal instead of visiting your bank branch.
For deposits and cheque payments, make use of direct fund transfers via online banking.
3) ATM charges
Did you know that using an ATM also costs? You don’t pay anything for using your bank ATM, but are definitely charged for using other bank ATMs.
Usually, the first five transactions at other bank ATMs are free. On your sixth visit, the bank can charge up to Rs. 20 per transaction. The charges vary from bank to bank, but don’t exceed Rs. 20. Many banks also charge for replacement of a lost ATM card or regeneration of the PIN (Personal Identification Number).
4) National Electronic Fund Transfer (NEFT) charges
Transferring funds to any bank account in India over the internet is surely very convenient, but not without a price. Different banks can charge anywhere between Rs. 5 and Rs 25 per transaction. Although the charges are not very high, if money is frequently transferred, the cumulative amount at the end of the year could be huge. Using a cheque saves this cost.
5) Cheque transaction charges
As such, issuing and receiving cheque payments does not cost anything. But all is not as simple as it appears. If a cheque is returned without being paid, it carries a penalty. In case of intercity payment via cheque, a bank has to bear additional costs of clearing, which it draws out from the customer’s account. Asking a bank to withhold cheque payments also carries charges. For instance, Axis bank charges Rs. 100 every time you ask for holding a cheque payment. Requesting cheque books beyond an allowed quota too has a price. Banks usually charge customers Rs. 2 per cheque. This means, if you ask for a booklet with 50 cheques, it costs Rs. 100.
One can easily spare oneself from paying the numerous bank charges by simply being a little alert about the money deducted for banking services in the account. One can monitor ones account through online banking and always question the bank about any unfair charges levied for any services provided.
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