We often use ATM cards to withdraw cash. But do you know how much the banks charge you every year for having an ATM card? You will hardly know about it. Here we are telling you about the charges associated with ATM cards and how to avoid them. So, if you also use ATM cards, then this news can prove to be very useful for you. Know 5 important things.
ATM card is not available for free, an annual charge is levied
Yes! Most banks charge an annual maintenance fee (also known as AMC) every year for debit or ATM cards. This charge depends on the category and service of the card. The AMC of some cards can be zero, while the AMC of some premium cards can be up to ₹ 2000! Apart from this, GST up to 18% is also applicable. So, the next time you withdraw money from the ATM, remember that you are paying an annual fee for this facility.
The extra charge is levied even for frequent cash withdrawals
Banks set a monthly limit for cash withdrawals from ATMs (e.g. 3 to 5 transactions per month). If you withdraw cash more than this limit, you have to pay a separate fee for every additional transaction. This fee can range from ₹ 10 to ₹ 25 per transaction. Therefore, it is wise to pay attention to the number of your withdrawals.
Why is there a charge on an ATM card
An ATM card is not only for withdrawing money, but it also provides many facilities like SMS alerts, online payment, email notifications, and checking balance. Banks have to charge AMC and GST to start and maintain these services. This is, in a way, the price of using these facilities.
Is there any ATM card on which no charge is levied
Some banks have basic debit cards on which no annual fee is charged. These cards are usually only for common tasks like withdrawing cash. But banks often do not inform customers about these cards. For this, you will have to go to the bank yourself and inquire. So, if you do not want more facilities, then definitely find out about this option.
Charges will be deducted even if you do not use it
If you have taken an ATM card but you do not use it, the bank will still charge you AMC and GST. This is because the charge is applicable as soon as the card is activated. If you are not using the card, it is better to either opt for a basic card without charges or get the card closed. This is a smart way to save your money.