Banking now days is one of the most important services which help in our day to day life. With more and more facilities and advancement in technology, today we do not even need to physically visit the bank. Most of the transactions can take place online or on the phone.
As it is rightly said “there are no free lunches” similarly we pay a heavy price to the banks in order to avail these services. Many of us do not even realise, as to how much money we spend in order to avail these services. However the good thing is that with little knowledge and awareness we can all do away with a lot of bank charges.
Following are few of the bank charges which we can avoid without compromising on the service.
Charges on cash deposit-With the advent of online banking and plastic money, cash deposit is not a very common affair. However people who wish to carry on with cash deposit must be made aware that banks usually charge fees for frequent cash deposit. Many times the first few cash deposit is free of cost but for frequent cash deposits the bank may charge a fee which could be as high as 5 Rs per 100 Rs. There is also a daily limit of 50K INR on cash deposit. Therefore the only way to escape this fee is to make use of online transfer or to write a cheque.
Charges on cash withdrawal-Just as bank charges a fee for cash deposits similarly banks often charge a fee on frequent cash withdrawal. Therefore if you are withdrawing a hefty amount of cash then be prepared to pay the fees. The easiest way to avoid these charges is to go use the traditional method of using a cheque or settle your dues with the help of online transfers.
Charges on NEFT payments and RTGS-Banks have indeed found one or the other way to charge for its services. NEFT transfers and RTGS are not far behind. Banks normally charge a service fees when a customer makes use of the NEFT payment. It’s generally not a heavy charge and varies from 5 Rs. to 24 Rs. depending upon the amount. Each time there is a transaction, there is a NEFT charge which is borne by the person making the payment, therefore it is wise to club the payment and do it as one transfer.
Charge on bounced cheques- In order to ensure safety of funds, the banks charge a heavy penalty on bounced cheques. Since it’s regarded as an offence therefore, banks do not leave any room, and may charge a penalty of Rs-250 to Rs 750 depending upon the amount. Therefore it is always advisable to check for founds beforehand while writing a cheque. If the cheque returned charges are not paid for then the bank can sue and register a case against the bearer.
Service charges on Outstation cheques-A bank charges a service charge if you want to a cheque should be paid in a different city to the debtor. For example if you want a cheque to be payable in a different city, then you would have to incur charges. Now the question is how to avoid these charges. If you happen to travel frequently between these two cities then it is wise to write a check when you are in the same city where you want it to pay for. In such a case it would be regarded as a local cheque and you would be able to do away with the charges.
Above were some of the charges which banks often charge for the use of the services, but one can definitely do away with these charges by taking intelligent action.