Personal Finance: Individuals frequently deposit their funds into bank accounts, finding reassurance in the belief that their money is secure. They expect their balances to grow rather than diminish. However, there are instances when small amounts begin to decrease, often without the account holder’s notice.
Those who monitor their accounts regularly may find themselves perplexed. This concern can lead to anxiety, prompting them to contact the bank’s customer service.
Several types of fees can reduce your bank balance
Numerous fees can be deducted from a bank account, including minimum balance fees, debit or ATM card charges, penalties for bounced checks, fund transfer fees, SMS alert charges, and fees for deposits and withdrawals, as well as for statements or passbooks.
How can one avoid these bank fees?
- Ensure that the minimum balance in your account does not fall below the required threshold.
- Consider opting for an auto-sweep account, which transfers excess funds into a fixed deposit, allowing you to earn interest without the need to maintain a minimum balance.
- If maintaining a minimum balance is not feasible, consider opening a zero-balance account, such as a Jan Dhan account.
- Be mindful of ATM withdrawals that exceed the free transaction limit.
- When issuing a check, ensure that sufficient funds are available in your account to cover the amount, as fees will apply if the check bounces.
- Additionally, pay attention to the signature on the check.
- Obtain a comprehensive list of bank charges by visiting the bank’s website or branch to stay informed about potential fees.
- Some banks may impose charges for setting up auto-debit for credit cards, so it is advisable to review the terms and conditions beforehand.
- Stay informed about free ATM transactions, checkbook fees, SMS charges, and similar costs.
- Utilizing UPI and Net Banking can help you avoid charges associated with ATM/Debit cards and checkbooks.
- Establish email notifications through your bank’s application to prevent incurring charges for SMS alerts. Regularly monitor the fees associated with your account.
- If you hold a prime account, such as a salary account or have investments with the bank, you may request a waiver for certain fees, subject to the bank’s policies.
- In the event that the bank imposes excessive charges, consider opening an account with a financial institution that offers lower fees.