alexa
Home Articles How To Beat Your Bank When It Charges

How To Beat Your Bank When It Charges

IndianMoney.com Research Team | Updated On Thursday, June 28,2018, 10:53 AM
4.1 / 5 based on 18 User Reviews

How To Beat Your Bank When It Charges

 

 

 

How’s this for a saying, “Give a man a gun and he will rob a bank”. Give a man a bank and he will rob the World.” Yes, some banks in India are charging you to deposit and withdraw cash, beyond a certain number of transactions. Some banks mainly private sector banks, ask you to maintain an average minimum balance in your savings bank accounts. This practice is being copied by public sector banks.

 

Just take a look at this…..

 

  • India’s leading private sector banks ICICI Bank, HDFC Bank and Axis Bank, charge you and other customers a minimum amount of INR 150 for cash withdrawals and deposits at bank branches beyond the free limit.
  •  SBI has made it compulsory for you and other account holders to maintain a monthly average balance in your savings bank account of INR 5000, for branches in 6 metro cities. This rule is applicable from April 1st 2017. If you don’t maintain the minimum balance, you will have to pay a penalty ranging from INR 50 to INR 100.
  • Some public sector banks charge you for not maintaining a minimum average monthly balance.
  • Some elite private sector banks actually ask you to maintain a minimum balance of INR 10,000 in your savings bank accounts.

 

Then banks charge you for extra cheque leaflets, UPI/USSD transactions beyond a limit….why some banks even charge you for SMS alerts. So how can you save your hard earned money from banks? Let’s find out. Want to know more on loans and fixed deposits? Just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website. IndianMoney.com offers Free, Unbiased and on-call financial advice on Insurance, Mutual Funds, Real Estate, Loans, Bank Accounts and Capital markets.

 

Beat Your Bank When It Charges You For All Those Services

 

1. Close all your unused bank accounts

 

You have opened savings bank accounts in a number of banks? You don’t use many of these savings bank accounts and don’t bother closing them. There is a very high chance that money in these savings bank accounts could have fallen below the minimum limit and banks would charge you for it. If you don’t transact using these savings bank accounts for more than 12 months, these accounts become inactive.  If you don’t transact using these savings bank accounts for more than 24 months, they become dormant.

How to save your money from these banks? You simply close all your inactive and dormant savings bank accounts. Should you leave your money lying idle in a savings bank account which pays you an interest of just 4% a year, when you have so many great investments to make?

 

2. Don’t reach too often for that cheque

 

Love reaching for that cheque whenever you have to make a payment? This habit is going to cost you. Your bank gives you a cheque book each quarter, absolutely free of cost. This cheque book has 20 to 25 leaves. If you happily keep paying for everything you buy/use through cheques, your cheque book will get over, real soon. If you request the bank for a new cheque book, you will be charged for it.     

Do you think it’s a great idea to pay by cheque? Or, is it better to use online banking to make payments?

 

3. Banks make money if you are careless

 

Are you the kind who keeps forgetting your card PIN’s? Your bank might charge you for the regeneration of your debit or credit card PIN. You got to remember your card PIN’s even if it means learning tricks to strengthen your mind. Should you allow banks to run away with your hard earned money?

 

4. Go Digital. Save your money

 

After demonetization you and several citizens have adopted digital methods of payment. Digital = Paperless. Whenever you make a transaction, e-statements are sent to your email id/mobile. You are kept up to date with your transactions. What if you want your monthly statement in the physical form? Bank would have to post/courier your monthly statements and you would have to pay for it.

Do you think reducing dependency on physical statements is a good idea?

Yes, banks can separate you from your hard earned money, but only if you co-operate with them. There is a saying…A fool and his money are soon parted. Keep on eye on your bank statements. Know where your money is going. Be Wise, Get Rich.

 

Did you find this article useful? You can Rate us
4.1 / 5 based on 18 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

Get It now!