Recently all public and private banks have revised their charges for savings accounts and usage of debit cards. The banks have revised charges for not maintaining balance in your account. Also, if you are in the habit of using your debit card for withdrawing cash from ATM frequently, you may have to pay a charge every time you withdraw cash. Let’s look at what these charges are:
Minimum Average Balance (MAB): The minimum average balance to be maintained in savings bank account has been revised from Rs 2000 to Rs 10,000 in metro cities and Rs 1,000 to Rs 5,000 in semi-urban and rural areas. The charges for not maintaining MAB range from as low as Rs 15 per month to as high as Rs 600 per month. The MAB is the average amount per day that is required to be maintained in the savings account and the charges levied by the banks for not maintaining MAB differ between various banks and depend entirely on the bank in which the customer has an account. Hence, it is in the interest of the accountholders to know from the bank the MAB required to be maintained to avoid paying charges for not maintaining MAB.
Debit card transaction charges: Banks have been levying cash transaction charges on number of deposits and withdrawals beyond a specified limit in a month. Usually, the free transactions for withdrawals through debit card range from 3 to 5 transactions per month, which depends on the particular bank. Beyond the specified limit, the charges for withdrawals though debit card range from Rs 20 to Rs 150 per transaction. Hence, it is advisable to find out the maximum limit of free transaction from your bank to avoid paying cash transaction charges.
SMS charges: When you deposit or withdraw money from your savings bank account, you instantly get an SMS alert. Many banks levy SMS charges ranging from Rs 15 to Rs 25 per quarter. If you do not wish to get these SMS alerts, you will have to write to your bank to discontinue the service.
These are just some of the charges that have been revised by the banks, but there are many more. So, before availing any service, enquire with your bank about the service charge you may have to pay for availing that service.