Can you imagine life without a bank? Definitely Not. A bank plays a very important role in our lives and having a bank account is really important as it is required for most things. With the advent of digital payments, we require a bank account for transferring money, booking tickets, online shopping and so on. Banks lend money in an emergency. Yet, many customers are not aware on how banks cheat them by levying various charges. In this blog, we will discuss how banks cheat you.
Many customers are unaware that banks offer only a fixed number of free monthly ATM transactions and after the completion of free transactions, they will be charged for each transaction made. As per the rules, customers will be given only 5 free transactions in a month at own bank ATM and from other ATMs, customers can make 3 free transactions a month. The fees charged vary across banks.
Both financial and non-financial transactions are considered as ATM transactions. Non-financial transactions include balance enquiry, mini statement, changing ATM pin and opening fixed deposits through an ATM.
Banks charge money for sending SMS alerts. Nowadays, almost all the banks offer this facility. You will receive an SMS for each and every transaction made by you.
You will be charged by your bank for transferring money using online facilities like IMPS, NEFT and RTGS. Money charged will be between Rs 5 to Rs 25 for each transaction.
You will be charged a penalty by banks for non-maintenance of minimum balance in your bank account. As per the rules, you need to maintain the minimum balance as required by your bank. You will be shocked to know that in the year 2017-18, 21 public sector banks and three major private sector banks collected Rs 5,000 Crores from customers, for not maintaining a minimum balance in their accounts.
Different types of bank accounts will have different minimum balance requirements. So, it is advisable to enquire with the bank regarding the minimum balance while opening a bank account.
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You will not be allowed to do unlimited cash transactions from your bank account. After a certain number of transactions, you will be charged money by your bank. If you have an account in SBI, you will be allowed to make only 3 free cash transactions a month and after that, you will be charged Rs 50 per transaction.
Banks allow you to pay the minimum balance on your credit card. Minimum balance due will be 3% of the outstanding dues you have to repay on the due date. Many people pay minimum balance just to escape the late payment charges. Paying the minimum amount due on the credit card, does not save you from paying interest on the outstanding balance on your credit card.
Option to pay the minimum balance on the credit card is a trick played by the bank to cheat customers. If this option was not there, customers would clear the credit card dues within the requisite date.
You will be charged money by your bank if you withdraw cash from ATM using your credit card. Cash advance fee varies from 2.5% to 3% of the withdrawn amount, subject to a minimum amount of Rs 300 to Rs 500. You will not be given the interest-free period if you withdraw cash using your credit card. That means you will be charged interest from the very next day.