Banking Charges: What are the charges banks can levy on you? | The Financial Express

Banking Charges: What are the charges banks can levy on you?

Before availing banking services, you must know about the charges as they are easily available on the respective bank’s website.

Banking Charges: What are the charges banks can levy on you?
Cash withdrawals and deposits may also attract a nominal fee depending on the amount.

As a customer, you use multiple banking services, both offline and online. Some of these services are free, and some are chargeable. Typically, banks mostly give free services to their existing customers, such as free ATM cards, chequebooks, and online services. However, some services are chargeable, and some require a fee if you exceed a threshold limit. Before availing banking services, you must know about the charges as they are easily available on the respective bank’s website.

Often the service charges are nominal and only levied when the user exceeds a certain limit for free services. For example, if your bank balance slips below the minimum balance limit, you need to pay a fee. Similarly, the number of free ATM withdrawals may be capped, and charges may apply after the cap. Other common charges include debit card annual fees, cheque book issuance or bounce fee, and payment transfer fees.

Cash withdrawals and deposits may also attract a nominal fee depending on the amount. Home banking services such as cash delivery etc., are also chargeable. If you apply for a loan, there will normally be a processing fee and documentation charges.

Also Read: Home Loan Balance Transfer: When should you opt for it?

Adhil Shetty, CEO, Bankbazaar.com, says, “Banks also provide customers information on all charges applicable to basic services and any proposed changes in charges in a timely manner. They also put up information related to charges on their official websites and mobile apps. Charges may vary from bank to bank and are not typically uniform across banks as it depends on the type of bank account you have. Banks may also provide free services and fee waivers to preferred customers with strong relations with the financial institution.”

While applying for a home loan, banks or other financial institutions may charge you an application fee, processing fee and legal charges, depending on your requirements and the lender. You might also have to pay other charges when you need duplicate copies of certain documents you have submitted with the banks to borrow money. There can also be loan foreclosure charges if the loan is on fixed interest rates.

Other charges such as availing of a locker and making payments outside your country through your debit cards may also be there. Banks also charge you a fee when you want to create a Demand Draft (DD) or need a chequebook with more pages than the standard one.

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First published on: 20-08-2022 at 01:19:13 pm
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