New Delhi: A savings account allows the customers to deposit and withdraw money, providing interest on the amount deposited in the bank. Banks offer many services such as SMS alert, account statements, debit card issuance, cheque books, etc. However, these services come at a cost. Many people banks offer these services free of cost while there are some who charges.
For instance, if you demand a physical copy of account statement then you have to pay a fee, however, if you request your account statement on email or check it on the bank’s app, then it is free.Read more ↓
Here are the few charges that banks levy on savings account
1. Penalty for Non-maintenance of Average Monthly Balance- Most of the banks levy penalty on non-maintenance of minimum balance in the account. For instance, the required minimum MAB for the SBI accountholders in metro and urban areas is Rs 3,000. While for the customers located in semi-urban and rural areas are required to maintain Rs 2,000 and Rs 1,000 respectively.
2. Debit card issuance charges- All banks charge an issuance fee and annual maintenance fee for the issuance of debit cards. However, there are some banks who offer free debit cards such as Axis Bank’s Priority Debit Card. Most banks charge from Rs 100 to Rs 200 for a basic debit card. The charges vary depending upon the services being offered. It may also be noted that if a customer loses his or her debit card, then again he or she has to pay a fee.
3. Cheque book charges- With the digital transaction, many people prefer online transactions but there are still some people who make payments through cheques. At the time of account opening, banks give a cheque book of 20 to 25 cheque. Most of the banks charge if you order a new cheque book. But there are some banks who do not charge for cheque book issuance in case of customer hold premium account with the bank.
4. ATM charges- Banks generally allow three to five free transactions in a month at their own bank’s ATM. Once a customer exceeds this limit, they charge per withdrawal. Apart from this, banks charge for debit card PIN regeneration as well.