Nowadays, everyone uses banking services, whether online or offline. Whether transferring money, clearing checks, or withdrawing cash from an ATM, the banking system has become an integral part of our lives. But have you ever wondered how much money is deducted from your account every year just in the name of ‘charges’? Banks levy small fees that we don’t even realize, yet they significantly impact our pockets. Let’s explore these six important charges.
Charges on Cash Transactions
Most banks offer free cash deposits and withdrawals only up to a certain limit. Once you exceed this limit, the bank levies a fee ranging from ₹20 to ₹100. This charge applies every time, so withdrawing cash multiple times a month can significantly increase your financial costs.
Penalty for Not Maintaining a Minimum Balance
If the minimum balance required in your account is not maintained, the bank imposes a monthly penalty. This amount can range from ₹50 to ₹600, depending on the bank’s rules and location. Millions of people ignore this and gradually lose a large sum. These penalties are often higher in urban areas than in rural areas.
IMPS Transfer Fees
While most banks currently do not charge fees for NEFT and RTGS transfers, IMPS (Instant Money Transfer) still incurs a fee. This fee can range from ₹1 to ₹25, and can prove to be quite expensive for frequent transfers. This fee is a cost in exchange for the convenience of instant money transfers.
SMS Alert Deductions
The SMS you receive whenever a transaction occurs in your account is also not free. Banks charge ₹15 to ₹25 every quarter (three months) for SMS alerts. This amount can reach approximately ₹100 annually and generates significant revenue for the bank from its millions of customers.
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Checkbook and Check Clearing Charges
Banks typically provide the first few check leaves free, but after that, a fee is charged for each additional checkbook. If you clear a check for more than ₹1 lakh, you may also incur a clearance charge of up to ₹150. This is an additional cost for those conducting business transactions.
Frequent ATM Withdrawal Charges
Every bank allows free cash withdrawals from ATMs only 4-5 times a month. After that, a fee of ₹20 to ₹50 is levied on each withdrawal. If you withdraw money from another bank’s ATM, the fee may be even higher. Additionally, debit cards also have an annual maintenance fee ranging from ₹100 to ₹500. If your debit card is lost or damaged, the bank may charge a fee of ₹50 to ₹500 to issue a new card.