Almost 80% of the Indians have Bank accounts now. There are different charges incur while using different banking products.
With this post, you can learn
- list of different banking products and their service charges/fees
- How to avoid the bank charges
- Money Savings tips instead of paying unnecessary service charges
Savings Account charges:
Mainly following are the charges incur for the bank services while using a Savings Account.
- Minimum Balance Fees(Average Monthly Balance)
- Failed Standing Instructions fees
- Debit Card Fees
- SMS Alerts
- IMPS charges
Minimum Balance Penalty:
This is the highest charge, we are paying for maintaining the bank accounts.
Every month, it Attracts 300-500 rupees for not maintaining the average monthly balance.
Don't worry, there is a solution to avoid the min bal penalty. Click here to know.
Standing Instructions:
It is easy to set the Standing Instructions.
Even, the banks are forced to set the Standing Instructions for the bill payments like power bill, post paid bills etc.,
But, if the Standing Instructions are failed due to there are no sufficient funds, it attracts 200 rupees penalty.
Solution: Don't set the S.I, unless there are sufficient funds always in your bank accounts.
Here is my experience when setting a Standing Instruction.
Debit Cards and their charges:
Debit cards will not come for free and attracts the fees too.
- Joining Fees
- Annual Fees
- Card Renewal Fees
- ATM Pin Generation
- Insufficient Funds
- Post free ATM withdrawals
- International ATM withdrawals
To know the debit card charges for the different banks like HDFC, SBI, ICICI etc., click this link.
Tip : If you have unused debit cards, surrender it by writing a mail to the bank.
SMS Alert Charges:
Do you know, you are paying 60 rupees per year for each bank account.
Follow these links for saving money from bank alerts.
HDFC Instalerts
SCB SMS Alerts
For the remaining banks
IMPS charges:
Although we are using UPI for all the bank transactions, there are times to transact once using IMPS. Note the different IMPS charges of the banks.
Pro Tips from the Little Savings:
The following graph shows how much you can save for each service.
How to save money from min balance penalty
How to save money from Debit Card charges
How to save money from SMS Alerts
How to save money from IMPS Charges
Deposits:
Even though deposits earn interest rates on maturity, but it also attracts pre-closure charges for pre-mature closure.
The below graph is for only comparison for the Interest rates among the other banking products.
Credit Cards and their related charges:
Credit Cards are more useful than debit cards as they have Cashback, Rewards etc., And for the salaried employees, it is a boon.
Any bank product should be used properly, or else we end up paying heavy bank charges. Credit Card is one of them.
But it is one of the most useful banking product, since we can have a 20-50 days of free credit.
Here are the list of charges for the Credit Card.
- Rewards Redemption Fee
- Annual Maintenance Fees
- Finance Charges
- Cash Advance Charges
- Late Payment Charges
- Payment Return Charges
To know more in detail, follow this link
It is evident from the above graph, that it attracts more fees on the Finance charges.
Tip: Never ever skip your credit card payment.
Loans and its related charges:
Personal Loan:
At some time in our life, we will take a personal loan.
I too opted for a loan of 1 L, but when it comes to hand it is not the same amount.
It attracts different processing fee charges called as Loan Disubursement Charges.
- List of Personal Loan Charges:
- Stamp Duty
- EMI Return Charges
- Processing fees
- Late Payment Charges
- Pre-Payment Charges
Home Loan:
Buying a home is a dream of every millennial.
But before taking a home loan, one should have cash in hand.
The following picture shows the different charges and Registration charge is the highest one, which should have in cash before buying a home.
This cannot be deal in a single post. Read my experiences with Home Loan.
Are you taking home loan for the first time? Here are the tips for you.
