If you have a bank account, debit card, or credit card. Then you will be paying some fees and charges every year or in cases every quarter. But do you know about those charges? If you do not don’t worry this guide is all about 9 major service charges that you pay to your bank unknowingly or knowingly.
- Bank Services Charges You Should Know About
- 1. Monthly Average Balance Charges
- 2. Insufficient Balance Charges
- 3. SMS Alerts Charges
- 4. Debit Card Annual Charges
- 5. Debit Card Usage Charges
- 6. Debit Card Reissue Charges
- 7. Credit Card Joining Fees
- 8. Credit Card Annual Maintenance Charges
- 9. Fund Transfer Charges
- 10. Documentation Charges
- 11. Cheque book Charges
- 12. Cash Handling Charges
Bank Services Charges You Should Know About
So let us explore the charges that the bank levy on the customers in India. You might be knowing some of these while you might not know some of these.
1. Monthly Average Balance Charges
The most prominent charge that the bank takes from the customers in India but customers don’t know about is MAB charges.
The bank makes you pay this when your monthly average balance comes below a certain level. So you always have to make sure that your MAB is above the prescribed levels.
The MAB defers for every bank account type and it will be told to you when you were opening the account with the bank. If you don’t know your account variant’s MAB. Then you can call the customer care of the bank and ask it.
2. Insufficient Balance Charges
The banks will make you pay this charge if you try to make a transaction that is of more value than your account balance.
Usually, this type of transaction gets rejected by the bank. Which means the transaction will not go through. But still, the banks charge you for this.
Not all the banks but still some of the huge names in the Indian Banking industry levy this charge on the customers. So before making any transaction make sure to check your account balance.
The easiest way to check the balance you have in your account is by giving a missed call. If you don’t know the missed call number of your bank, check it here.
3. SMS Alerts Charges
This charge is for the SMS alerts and notifications you receive from your bank. Almost all the banks in India charge this fee and is charged every quarter.
SMS alerts charges are very common. If you want to know the exact amount of charge you are paying. Then you can refer to the schedule of charges page on your bank’s official website or call customer care.
4. Debit Card Annual Charges
Debit Card Annual Charges are charged against the debit card you have received from the bank. 80% of the bank account types and debit card types are chargeable in India.
Whereas some of the account variants offer a free debit card for life. In such cases, the customer or the account holder will not be charged for the debit card annually.
5. Debit Card Usage Charges
Every debit card has a free usage limit. These limits are further classified into the same bank ATM charges and other bank ATM charges.
For example, your debit card has got 5 free same bank ATM usage. (ATMs that are operated by your bank) And 3 other bank ATM usage.
If you use your debit card more than 3 times in other bank ATM machines. Then your bank will charge you a fee for every time you use it.
This is how debit card usage charges work. And keep in mind that even the non-financial transactions using the ATM machine like mini statement and balance enquiry have usage limits.
6. Debit Card Reissue Charges
When you open an account with any of the banks, you will receive your first debit card for free. No extra will be charged for that.
But in case if you have blocked the card due to loss or theft. Then you will need a new debit card from the bank. Your bank will charge you for the new issue of the card.
7. Credit Card Joining Fees
If you apply for a new credit card from your bank or any other bank. Then you can see this “Joining Fees” mentioned on the credit card application fees.
You have to pay this charge when you are getting a new credit card for yourself. In some cases, you will get back your joining fees if you spend a certain amount of money in the starting months.
8. Credit Card Annual Maintenance Charges
Just like the debit card even the credit cards come with annual maintenance or membership charges. The banks and credit card companies charge you this once a year.
And just like the joining fees, even the annual charges of the credit card are reversed when you spend a certain amount of money.
9. Fund Transfer Charges
In India, as per the RBI notification, the NEFT and RTGS transactions are not chargeable. But still, the IMPS transactions you make for the fund transfer are chargeable.
And these charges depend upon the amount of IMPS transactions you are carrying out. If you want to save on the charges then you can use modes like NEFT and RTGS if the value of the transfer is more.
And in case the value of the fund transfer is less. Then you can use the UPI services for quick, easy, and free fund transfer.
10. Documentation Charges
Whenever a bank is issuing you any documents like certificates, validation documents, and bank passbooks. You will be charged for it.
The documentation charges differ from which document you are getting from the bank. Like the charges are different for certificates issued by the bank. And they are different for a new bank passbook. (if you have lost or damaged it)
11. Cheque book Charges
In the case of some bank account variants, the first cheque book is given free of cost along with the welcome kit. But when you use all the cheque leaves and want a new one.
The banks will make you pay for the issue of a new cheque book. The amount you have to pay depends upon the number of books and the leaves you are getting from the bank.
12. Cash Handling Charges
These days the banks charge the customers when he or she is making the cash deposits transactions at the branch of the bank.
There is a certain limit set by the banks. If you go beyond then only you will have to pay for the cash handling charges. The customers get higher cash deposits limits at the home branch when compared to other branches.