Hidden Banking Charges Deducting By Bank and How To Reduce

Hidden Banking Charges:
Nowadays, almost everyone uses banking services, whether online or offline. We deposit money, withdraw cash from ATMs, clear cheques, or transfer funds regularly. Banking has become an essential part of our daily lives. But have you ever wondered how much money your bank deducts from your account every year in the name of “charges”? Banks apply several small fees that we often ignore, but over time, they can have a significant impact on our wallets. Let’s look at some of the common hidden charges.

Hidden Banking Charges:

Cash Transaction Charges:

Most banks allow free deposits and withdrawals up to a certain limit. Any transaction beyond this limit may attract charges of ₹20 to ₹100 per transaction. So, frequent cash withdrawals can quietly add up to a large amount.

Minimum Balance Penalty:

Banks require account holders to maintain a minimum balance. If your account falls below this limit, a monthly penalty is applied. This can range from ₹50 to ₹600 depending on the bank and region. Many customers overlook this, gradually losing significant money.

IMPS Transfer Charges:

While NEFT and RTGS transfers are mostly free, IMPS (instant money transfer) still carries fees. These charges usually range from ₹1 to ₹25 per transfer and can accumulate if you transfer money often.

SMS Alerts Charges:

The SMS alerts you receive for each transaction are not free. Banks charge ₹15 to ₹25 every three months for these alerts, which totals around ₹100 annually. With millions of customers, banks earn substantial revenue from this.

Cheque Book and Clearance Charges:

Banks provide a few free cheque pages initially. Beyond that, each additional cheque book costs extra. Clearing cheques above ₹1 lakh can attract charges up to ₹150. Frequent ATM withdrawals are also limited to 4–5 free transactions per month. After that, banks may charge ₹20 to ₹50 per withdrawal, and charges may be higher for other bank ATMs.