Banking has brought an ease to our day to day payments and expenses that we have become almost ignorant about the charges on services that banks impose on us as "fees." As you carry on day to day tasks swiping your debit card and withdrawing money, you need to be aware of the following charges and fees so that it helps with your monthly budget.
- Non-maintenance of minimum balance: When you quit your job, and you want to keep your salary account as your savings account, it converts automatically but the privilege of a zero balance account ceases to exist. Banks have a minimum requirement anywhere from Rs 1,000 to 10,000 on savings accounts. If you fail to maintain the balance, you will be charged with heavy non-compliance fees. Make sure to close your bank account if you cannot deposit in it.
- Cash withdrawals: Ideally, withdrawals from ATMs other than your bank's and in places outside your home branch's jurisdiction is charged with a service fee. You also have to pay extra if you use your own banker's ATM beyond a certain number of times in the city of your home branch.
- Cash deposits: Cash deposits made at non-base branches are charged for service.
- Cheques: For more than one chequebook per month, you can be charged. Additionally, the leaves in the new chequebook will be less than the first one. Apart from that, to process an outstation cheque, your bank will include service charges.
- SMS service: The alert messages you receive on your phone for withdrawals or payments are also charged by banks.
- Re-issuance of cards: Banks charge a fine for re-issuing a lost or stolen debit card when applied for.
- Merchant processing charges: Digital transactions where you swipe your credit/card or use it for an online payment is generally not charged unless the website uses a third party payment agent. For example, when you book a train ticket using the IRCTC website and make a payment towards the ticket, you are charged a fee. This could be a flat minimal charge or a percentage of the amount of the transaction.
- Foreign currency transaction fee: You can be charged a cross-currency markup charge between 2 to 4 percent on making a foreign currency transaction using debit or credit cards.