In today’s digital era, almost everyone holds a bank account. The advent of the Pradhan Mantri Jan-Dhan Yojana has significantly increased the number of people with bank accounts.
However, many account holders often find charges deducted from their accounts without knowing the reasons behind them.
Types of Bank Accounts:
There are primarily two types of bank accounts: savings account and current account. Common individuals usually hold savings accounts, while businesses and those involved in frequent transactions opt for current accounts.
Savings accounts can often be opened with zero balance.
Common Charges on Bank Accounts:
Regardless of the account category, you will be subject to certain charges. The number and amount of charges may vary depending on the account type.
1) Maintenance Charge:
All banks charge this fee for maintaining your account, applicable to all account types. Rates may vary across different banks.
How to Save: Many banks waive maintenance charges if your transactions exceed a certain limit. Review your bank’s terms and conditions to find out more.
2) Debit Card Charges:
How to Avoid: If you don’t require a debit card, simply decline it during the account opening process.
If you have multiple accounts, request a card for only one of them.Banks typically provide debit cards along with account opening, but they come with an annual fee.
3) ATM Charges:
Using another bank’s ATM may incur charges, with most banks offering only four free withdrawals per month from their own ATMs.
How to Avoid: Optimize your withdrawals by taking out sufficient cash for monthly expenses in one or two transactions. Minimize using ATMs of other banks.
4) Low Balance Penalty:
It’s essential to maintain a minimum balance in your account; failing to do so may result in charges.
How to Avoid: Keep track of your minimum account balance requirements and ensure you maintain the necessary funds.
5) Overdraft Charges:
Not all banks offer overdraft facilities on savings accounts, but those that do may impose charges for availing this facility.
How to Avoid: Strive to manage your finances to avoid the need for overdrafts.
6) Transfer Charges:
Money transfers through channels like UPI, IMPS, RTGS, and NEFT are not free, and charges are levied.
6) Account Closure Charges:
Closing a bank account may attract charges, so it’s essential to be aware of this before making the decision.
How to Avoid: Verify if your bank imposes any account closure charges. Some banks may waive these charges after a certain period.
Understanding these charges and adopting appropriate strategies can help you manage your bank account more efficiently and minimize unnecessary deductions.
Be informed and proactive in managing your finances!