Top banks have been asked by the tax department to pay tax on the free services provided to customers, maintaining a minimum account balance. This might make banks charge customers for various services provided by them. In this blog, we will tell you various ways that can help you avoid paying more for banking services.
You will be provided only five free ATM transactions a month from banks. After 5 transactions, you will be charged Rs 10-20 per withdrawal and Rs 5-8 for non-financial transactions. So you must restrict withdrawals from ATMs. In case you transact a lot in cash, withdraw more cash and store it to avoid these charges.
Pay your credit card dues on time
You must pay off your credit card bills on time. In case you fail to pay your credit card dues on time, you will be charged late payment penalty and you must pay interest ranging from 24% to 48% per year on the outstanding amount.
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Banks charge money for every additional cheque book. These charges range from Rs 20-150 depending on the number of cheque leaves. So, avoid issuing cheques and start transferring money through Net banking at no/low cost.
You should not withdraw cash using your credit card. Apart from the interest, you will also be charged cash withdrawal charges by the credit card company. These charges range from Rs 300 to 500.
Credit limit is the maximum amount you can spend using your credit card. In case you exceed credit limit, you will be charged a fee by the credit card company.
Banks will charge if you do not maintain the minimum balance in your savings bank account. Charges differ from bank to bank. So, you must always maintain the minimum balance in your SB account.
You will be allowed to do only 3-4 free cash transactions at branches after which you will be charged Rs 50-150 per transaction. Restricting cash transactions at bank branches can help you save a lot of money.