Are you banking on a right bank?

Bank Statement With Hidden Charges
Photo Credit: photo credit: balance sheet ok via photopin (license)
Kumar Sunil

Kumar Sunil

Dreamer & Enthusiast

Creative. One word says it all for Sunil. A engineer, an enthusiastic and conscientious Information Technology consultant by profession, Sunil shares a special interest with entrepreneurship and lifestyle.

Hello sir, I am calling from xyz bank and I would like to share a few tips about how our bank can help you in maintaining your bank accounts. Is this a right time to talk?

We get this sort of telemarketing calls every day. Most of the time our reply to these account sellers is either where did you get my number from or sorry! Right now I am very busy. I have your number and I will call you back over the weekend. Even they know, that ‘weekend’ is never going to come.

After a few days, when you get a message from your bank, “account debited with 700 INR for the services they are rendering. You then ask your colleague and  the reply you get shocks your more, What sort of charges are these?

Your bank is a prick and it seems like they are just looting you.” Now, admit it, in the frustration, you either will be exploring Google or your phone log for the same number.

Finally, you will be comparing two or more banks for the service charges. But, it is too late now; agree or disagree, you have to be with that deduction.

No denial, banks are an essential part of our economy and nothing comes for free. The best practice to learn about those charges and comparing those with other banks before signing in.

This little consideration of yours can save you from heaps of unknown charges. Let me tell you about a few (hidden/unknown/never told) charges that generally hit your bank account.

AQB and AMB Charges

AQB (average quarterly balance) and AMB (Average monthly balance) i.e., minimum balance requirement adopted by most of the bank. Every bank has a limit of their own and should you miss to maintain it, you will then have to pay a certain amount as penalty. It is advisable to  either go with a bank which has lowest or no AQB/AMB.

Cash Deposit Charges

Are you up for depositing a big amount of cash? Well, be prepared for a cash deposit charge. Now, banks are charging you for deposit cash after a certain amount say 50,000 per day.

They need resources to tackle this situation where you deposit huge amounts. The best possible way of saving yourself from such cost is, “online transactions or cheques.”

Outstation Cheques

outstation cheques clearance means you are asking your bank to walk that extra mile for you and without any shadow of the doubt, the bank will charge you for this favor.

In simpler terms, if you are accepting your local bank to clear an intercity cheques, the bank will charge you with a certain amount of fees; bigger the amount, bigger the charge.

To avoid this, how about having a bank account at the location of your regular debtor. All cheques will now be treated as local cheques and hence, no outstation clearance charges.

Cash Withdrawal Charges

Same as in the case of cash deposit; bank do charge you for big cash withdraws. Fees could be anything. The only solution to this is – ask yourself, do you really need that much amount? Alternatively, ask the receiving party, if they are fine with a bank cheque.

NEFT/RTGS Charges 

Another kind of charges where bank charge you for transferring the money on the same day to any bank account in Indian from your bank account. Though fees for the service is not very much, however, the suggestion is club all NEFT transfers that are for one same party.

Cheque Bouncing Charges :

This is a hefty one. Single cheque bounce means nearly 250 INR deduction from your bank account. It further leads to poor creditability i.e., no more loans. Be wise, never borrow more than your paying capacity and always keep your bank account ready for any installments due.

Debit Card Fees

This one attracts a lot of fees. Whether you use it or not, you still have to an Annual fees pay for it.

Also, now most of the banks charge you for ATM transactions after a few free transactions (if not used in associated ATM). Before signing up, better compare banks for this charge.

For online shopping, it is always better to use Credit Card.

Keep yourself updated and always keep your bank updated with your latest contact information.

Do not miss to subscribe their newsletters because that is how they will let you know about all upcoming changes and charges.