Use online, phone, ATM services to save from paying extra charges

At the end of the month or quarterly when many of you get your passbook updated or get bank statement some of you have found bank has slapped some charges about which you didn’t have any idea. You might get confused on seeing these charges. But the banks have added more charges to the list of charges.

Now the list of service charges and fees is of three or more pages as banks are encouraging electronic payments and discouraging customers to visit branches. In case you have been visiting your bank branch frequently, the more you will be charged.

For example, instead of visiting bank branch to get statement you can get a duplicate account statement via the internet or through an ATM and you will just pay half the amount you would have paid at a branch.

The banks have different charges for using their customer care services such at ICICI Bank if you request for duplicate account statement at branch or through the customer care service without an interactive voice recording system then you have to pay Rs100. So better to opt for the computerized answering system and pay half the amount for a duplicate statement.

Banks have low charges for using their electronic channels for transactions as this reduces branch’s burden. For example SBI charges Rs5 for each debit transaction in a savings bank account if you have already done 30 debit transactions in 6 months, if done at a branch.

Many people send a request for an amount to be debited directly from their account for an investment or charity or insurance premia and signature verification is sought for these banks such as HDFC and SBI charge Rs50, the service tax and cess is charged additionally. If you ask to set up a standing instruction for debit, the charges will vary from 50-150 depending on the bank.

You can withdraw money five times a month from other bank ATMs, but if you do balance enquiry at the ATM not owned by your bank then some banks charge Rs12-25 for this service. Also, in case of rejection of transaction at other bank ATMs because there was not required balance in your account, then Kotak Mahindra Bank and ICICI Bank charge Rs25 per transaction for certain types of savings accounts.

Depositing cash in a wrong place also attract charges. A statement on the ICICI Bank’s website states, “On deposit of charge/cash in a collector box, a charge of Rs100 will be levied. The charge will be Rs300 in case the deposit amount is above Rs500. Repeat instances of cash deposits through the cheque drop box will attract an enhanced charge of Rs500.”

If your ATM, debit cards or personal identification numbers are sent back to the bank because the address you have furnished to the bank is wrong then you will have to pay Rs50 to compensate, says SBI in its charges list.

There are charges for depositing or withdrawing cash from non-home branch, meaning a branch where you don’t have an account. Kotak Mahindra Bank charges Rs50-10,000 on the basis of Rs2.5 per Rs1,000 deposited or withdrawn at non-home branches. HDFC Bank charges for third-party transacting on your behalf for cash transactions at non-home branches. However ICICI bank does not charge for first cash deposit in a non-city branch per month, but later Rs5 per Rs1, 000, subject to a minimum of Rs150 will be levied.

In case you have shifted your residence away from your bank branch, then close that account and open a new account with a bank branch closer to your new home.

There are other ways to save money include internet banking, phone banking or even ATMs, you can do transactions besides from plain cash transactions. You must check whether bank is charging you for non-maintenance of quarterly balance, in such case if you maintain a fixed deposit of an equivalent amount, most banks don’t charge for non-maintenance when you have an FD.

So, to save from being slapped extra charges it is very important to have an access to an internet banking and telephone banking personal identification numbers as many banking activities come at either no or a lesser charge when done online, via phone or at an ATM. Be careful while accessing your banking accounts using public computers.