Savings Bank Account: 10 Must Know Fees And Charges Involved

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Banks do charge for the service they provide. Be it a private bank or public sector bank they have all their own set of fees and charges for the service they have rendered.

However, private bank charges are high when compared to public sector banks. But when we consider quality of service, private banks tops the list.

Savings Bank Account: 10 Must Know Fees And Charges Involved

Here are some various fees and charges involved when you have a savings account:

1) Average quarterly balance

If we have a savings account or current account we need to maintain minimum balance in the account as per the account you hold. Minimum balance differs in case of different accounts.

2) Debit Card Fee

Some banks charge additional debit card which is requested due to damage of loss of card. The amount varies from Rs 100 to 500 depending on the card. Banks also charge in case you request add on cards for family members.

3) ATM Transactions

If you use the ATM machine to undertake transactions more than 3 times a month, you will be charged Rs 20. However, the restriction is only for the metropolitan cities of Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Benguluru.

For other cities like Indore or Bhopal, you can transact up to 5 times.

4) SMS And Email Alerts

Bank charges per quarter for SMS alert around Rs 15 (SBI).

5) Statement of accounts

Request beyond the regular free statement will cost you around Rs 100 per page for old entries. However, it is better to take print out from the net banking regulary or save the same.

6) Cheque bounce

usually, in cheque bounce case the penalty is levied on both the members. The charges may vary from Rs 100 to Rs 500 per instance.

7) Stop Payments

If you have issued a cheque and you want to stop it due to loss or anything you will be charged around Rs 50/- + ST per instrument up to 3 leaves for the amount of Rs 300/- + ST.

8) Reset Password/PIN number

Say for instance in HDFC Bank internet banking pin (IPIN) re-generation if the requests received is placed at the branch for physical dispatch. Debit card pin will cost you around Rs 50.

9) Insufficient Funds

Transactions declined at other bank ATMs anywhere in the world or at a merchant outlet due to insufficient funds will be charged at Rs 25 per transaction plus service charge.

10) Closing of an account

Banks do charge for closing an account early as they would have incurred some expenses to open an account which includes providing cheque book and other documents along with your welcome kit.

If you close your account within one year normally a bank cannot recover the cost of opening an account.

Charges may vary depending on the account, in some cases, it is as low Rs 100, but private sector are known to charge anywhere between Rs 250 and Rs 1,000. HDFC Bank charges a fee of Rs 500.

ReasonsFees and charges
Average Quarterly BalanceRs 500 - Rs 100
Debit Card FeeRs 100 - Rs 500
SMS And Email AlertsRs 15 - Rs 50
Account StatementRs 100 per page
Cheque bounceRs 100 - Rs 500
Stop PaymentsRs 50
Reset Password PIN numberRs 50 - Rs 100
Insufficient FundsRs 25
Closing of an accountRs 100 - Rs500
ATM TransactionRs 20 ( More than 3 transactions)

Conclusion

The fees and charges vary with bank. Make sure you read all your terms and conditions page and fees brochure before opening an account.

Goodreturns.in

Read more about: banking, savings account
Story first published: Tuesday, February 16, 2016, 11:33 [IST]
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