Banks charge you for a number of things. We know banks will charge charges for overdrafts, delayed payments, using an ATM at another bank etc. Excluding these, there are many charges hidden with banks.
Whether you're spending money or saving it, banks have plenty of sneaky tricks which they employ to milk you for the most cash they possibly can.
Here are 6 things to watch out for:
1. Advertised rate and rate you get
You won't always get the rate advertised by the banks. Banks are not always required to offer the rate advertised to all applicants. They can decide what rate to offer each customer.
2. Pay debt off early will cost more
People will always try to pay off debts early to avoid additional charges. With loans and mortgages, customers will think that paying off your debt ahead of scheduled date will be a good thing. Many banks will tack on fees for paying off the loan before the anticipated end date.
3. No free banking
Even if your account doesn't charge a monthly fee, it still isn't really free. Whether it's fees for dropping into your overdraft or the non-existent interest paid on your credit balance, we are all paying for our accounts whether directly or indirectly. 8 Transactions ATMs Can Do Which You May Not Have Known
4. Charges for swiping
The bank is charging you when you are using your money. Now, everyone is going digital. When you spend using your debit or credit card in the shops, the retailer is charged a fee for processing the transaction. That fee mostly goes back to the customer's bank.
5. Maintenance Fees
Many banks charge maintenance fees from customers. Some banks will waive these fees if your account balance remains above a certain amount, which is fixed by the bank. It is always better to select the bank account with zero maintenance charge.
6. Debit card fee
Customer needs to pay Rs 100 to 500 a year for their debit card. If the card is lost or damaged, the bank will charge you for issuing a new one.