For many of us, a savings bank account is the basic product that most of us associate with in the formal banking channel. A savings account is often the first relationship a customer forms with a bank. While opening a savings account is incentivized with zero charges, this is not end of all the charges associated with it. Details of all these charges and fees are available on the bank’s website.
Post demonetization, many banks are levying cash transaction charges in the event that you deposit or withdraw cash from your bank branch more than the prescribed number of times in a month. For example, ICICI Bank Ltd charges Rs5 per Rs. 1,000; subject to a minimum of Rs150. There is also a limit on the amount you can deposit. For self, there is no limit; for third parties there is a limit of Rs. 50,000 per day. In addition to cash transaction charges, ATM charges may also be levied and varies from bank to bank. Many banks allow first five transaction on own bank ATMs free of charge.
After fives transactions, every financial transaction could cost you Rs15-20, plus service tax. If you withdraw money from other banks’ ATMs, charges will depend on where the withdrawal was made. In a metro location, you could get up to three free transactions and in non-metros, up to five transactions. There will also be a daily cash withdrawal limit on your debit card. It is also likely that a joining fee of about Rs150 for the debit card, which comes with your savings bank account will be charged.
Most banks also ask you to maintain a minimum monthly average balance in your savings account. The minimum amount you need to maintain usually varies from bank to bank and also depends on where you live. For metros and urban areas, the amount you need to maintain would be higher compared to rural locations. In case you don’t maintain the required balance in a month, you could be charged for non-maintenance of balance. These charge can be Rs50-450 per month.
While most banks provide a certain number of cheque leaves for free. But if you need more, you may have to pay extra. In addition, transferring money by cheque may also entail charges. If you deposit an outstation cheque, you may have to pay Rs15-250 for the transaction, depending on the amount. Several such charges may accumulate if you are not privy to them since banks constantly revise these charges.