Banks are the safe haven for parking one’s money and debit cards are a boon to avoid carrying bulky purses and wallets while also ensuring increased saving. However, banks have strict regulations which have been put in place to protect their own interest as well as those of the customer. If the customer breaks any of the regulations they are levied a penalty which can be an expensive affair and eat into the profit you earn in the form of interest when you maintain a balance in the savings bank account.
We discuss here the bad money practices that might invite additional bank fees
Withdrawing Over the Minimum Balance Limit
Although some banks have the option of a zero balance savings bank accounts, there are many private banks that expect the customer to hold a quarterly balance of Rs. 10,000. If the customer fails to maintain the minimum balance in the account, then a fine is levied on it. The quarterly balance system can be slightly tricky since sometimes without realising it, we end up not maintaining the requisite average. It is advisable to leave the requisite minimum balance for a fair number of days so that it gets adjusted with the quarterly balance.
Using Non-bank ATM Machines More Frequently
As per RBI norms, a maximum of five transactions from non-bank ATMs are allowed every month. If you exceed this number, you will end up paying a fee for the same. The transaction can be withdrawing cash, checking balances and changing ATM PIN. Earlier this rule was applied for cash withdrawal alone. The charges levied for cash transaction is Rs. 20 and for non-cash transaction is Rs. 9.
Overlooking Bank Notices
Most banks send quarterly account statements, overdraft notices and other correspondences by mail. It is normal to either throw these mails away or just cursorily put them away in some forgettable drawer. The account statements are required for many purposes such as applying for housing loans, address proof etc. Banks levy charges for issuing duplicate statements and although this can be done over the phone, it is a time consuming process. Of course, for those who use online banking, they can simply take printouts of the account statement. However, a lot of necessary notice arrives from banks which also include lucrative offers which a person must not simply discard.
Forgetting to Update Any Change in Personal Details and Information
Updating personal information such as address and