The 7 most common charges on savings accounts

Over 80% of Indians have a savings account, making it one of the most popular offerings from banks, both public and private. Banks offer a wide range of services and facilities with savings accounts; some of these come with savings account charges, while others don’t.

Here, we will look at the various facilities banks offer and the savings account service charges for these. Alongside, we will also check out what bank fees IDFC FIRST Bank charges for each.

• Immediate Payment Service (IMPS)

This method involves instant electronic fund transfers in Indian rupees between banks within India; the amount can vary from bank to bank. Customers can initiate an IMPS via mobile or Internet banking and is safe and economical. This is a 24x7 service, and both banks must be part of the scheme.

Typical bank fees: Usually starts at Rs 2.50 per Rs 1000 transferred.

IDFC FIRST Bank’s charge: Zero

• National Electronic Funds Transfer (NEFT)

As with IMPS, NEFT is a money transfer service within India between banks; you do not need to be physically present at a bank branch to use it.  However, NEFT transactions, unlike IMPS, are not instantaneous. Also, unlike IMPS, the upper limit depends on the customer segment. This, too, is a 24x7 service, provided both banks are part of the scheme.

Typical bank fees: Usually starts at Rs 2.50 per Rs 1000 transferred.

IDFC FIRST Bank’s charge: Zero

• Real-Time Gross Settlement (RTGS)

Another instant bank-to-bank fund transfer service within the country, RTGS differs on two counts. First, it is used for much larger transaction values (minimum transfer amount is Rs 2 lakh, with no upper limit), and it has to be done during banking hours.

Typical bank fees: As per the amount sent, can start at Rs 15.

IDFC FIRST Bank’s charge: Zero

• Chequebook Re-issuance Charges

Many banks charge customers a fee while issuing a new chequebook. The first chequebook provided on opening an account is usually free, but thereafter the customer pays for chequebooks per leaf.

Customers also have to pay for cheque returns, with charges ranging from Rs 150 (plus GST) to Rs 1000 (plus GST), depending on the category of the cheque.

IDFC FIRST Bank charges no fees for reissuing chequebooks.

• ATM Charges

Over the past couple of decades, our dependency on chequebooks has decreased with the introduction of ATMs. Today, we can withdraw our money at the nearest ATM machine without waiting in long queues at bank counters or dealing with slow bank tellers.

But there’s a catch. Banks charge for ATM transactions after a fixed number of activities, including withdrawals and checking balance statements. So, if you visit ATMs frequently, you should be aware of the number of free transactions your bank allows. Incidentally, RBI wants banks to offer their savings bank account holders a minimum of five free financial transactions a month, irrespective of the ATM’s location.

In line with its fee policy for other services, IDFC FIRST Bank’s charges for ATM transactions are zero.

• Debit Card Charges

Most bank account holders are offered a debit card facility, which can be used for online shopping, cash withdrawals, and mini statements. However, customers often have to pay an annual fee for the service. 

Needless to say, IDFC FIRST Bank’s charges for debit card issuance are zero for the first year of opening an account with the bank.

• Account Closure Charges 

Among other savings account charges, this fee is generally unavoidable. What if a customer wants to close their savings account - will there be a charge for that? Yes, banks have an account closure fee, and as RBI has no guideline on the matter, the amount varies from bank to bank. You should know your bank’s policy on this.

IDFC FIRST Bank’s approach is simple: zero charges for account closure.

Saving with IDFC FIRST Bank’s Zero Fee Banking

These are just a few of the various charges that IDFC FIRST Bank has decided to do away with. In fact, there are 28 commonly used services that IDFC FIRST Bank has made free for its customers.

To get an overview of all the savings account charges that have been eliminated, click here. Note that all charges mentioned above are free of charge for IDFC FIRST Bank customers who maintain an average minimum balance in their savings account.

By doing away with fees on essential services related to savings accounts, IDFC FIRST Bank aims to benefit all its customers. This includes those with low financial literacy.

As the saying goes, every penny saved is a penny earned. So when you bank with IDFC FIRST Bank, you not only enjoy great ways to create wealth with high interest rates and monthly interest credits, but you also add to your earnings by saving on common bank charges. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.