Service providers use numerous ways to extract money from people. They do not collect money forcefully, instead, they charge fees which people are supposed to pay monthly, quarterly or yearly. Have you ever added up these fees and found out how much they come to? Actually, if these charges and fees weren't there, you could have saved a lot of money.
Many bank account holders are not aware of the various charges, banks levy on them. Banks impose different kind of charges on customers in the name of service charges. These charges include charges for non-maintenance of minimum monthly average balance, fees for a cash transaction, SMS alert charges, charges for Cheque book, Charges for transferring money and so on.
Almost everyone uses ATMs to withdraw cash and it has become an important part of banking. But, banks chargefor ATM use. You will be given a fixed number of free monthly ATM transactions and after completion of these free transactions, you will be charged for withdrawals. ATM transactions consist of both financial and non-financial transactions. Non-financial transactions are balance enquiry, mini statement, changing ATM pin and opening fixed deposits through an ATM. After the completion of the free monthly ATM transactions, you will be charged even if you withdraw money from the same bank. The amount charged differs from one bank to another.
Debit cards are very useful in our day to day life and it replaces the need to carry cash all the time. But the sad part is card fees have increased over the years. For Instance, you will be charged over Rs 200 plus taxes by banks for replacement or re-issuance of debit cards. Also, you will be charged transaction charges for using your debit card at select merchants like IRCTC / railway stations. Debit card fees at railway stations can range from a flat charge on your ticket, plus a portion of the transaction amount.
Financial institutions also have cross-currency mark-up charges on foreign currency transactions that can vary from 2-4% on foreign currency transaction carried out on debit and credit cards.
You will be charged fees for using a credit card. These charges include joining and annual fees, late payment charges, charges on cash withdrawals, charges in case you cross the credit limit and so on. These charges can hamper your financial well-being, so you should be very careful while using a credit card.
Air travel has been increasing each day, because of the speed and convenience it offers. As the number of people who prefer air travel rises, the fees associated with it are also increasing. If you are a frequent traveler you will feel the pinch. In case you cancel air tickets up to 2 hours before departure, you will be charged cancellation fees of Rs 3,000 or 100% of the airfare, whichever is higher. Also, Airlines have increased the baggage charges. You will have to pay more fees in case you are carrying extra baggage. In case you are carrying sports equipment, you will be asked to pay fees of Rs 1000.