Are bank charges stealing your savings? Here’s how to stop that

You work hard, plan your budget, and still—there it is. Another small, unexplained deduction on your bank statement. These seemingly small amounts could be hidden bank charges quietly eating into your savings. But what exactly is it for?

From SMS alerts to cash withdrawal fees, these quiet charges take away thousands from your savings over the year, without you even realising it. If you check your account only occasionally, you might lose more.

This guide will help you spot bank account charges, explain why they’re applied, and suggest practical ways to stop them. So, let's dive in!

What are some common hidden bank charges?
 

Many people assume that opening a savings account means free banking. Yet, most traditional banks still charge you for everyday activities. Hidden bank charges are unexpected fees quietly deducted from your account for routine banking activities. They are usually mentioned in fine print, making them easy to miss unless you know what to look for. These bank charges may seem minor, but they quickly add up. Let’s say you,

1. Withdraw cash from an out-of-network ATM twice a month (₹46 total)
2. Get charged ₹15 for SMS alerts
3. Miss the minimum balance once (₹300 penalty)
   

That's almost ₹4,332 a year gone. The same money that could have earned interest on a decent mutual fund SIP or gone toward your goals.

Below is a detailed overview of some of the common bank account charges with practical tips to avoid them:
 

The next section will teach you how to spot hidden fees before they drain your account.

Spot your bank charges in 4 simple steps
 

Not sure if you’re being charged? Here’s how to check:

1. Step 1: Open your recent bank statement (PDF or physical copy). This is where all transactions are listed in detail.

2. Step 2: Look for unfamiliar bank fees and charges in the statement. These can be terms like “TXN FEE,” “SMS CHRG,” “MIN BAL PENALTY,” “INTL MARKUP”

Pro tip: If you're an IDFC FIRST Bank customer, download your e-statement from the app and use keyword search (Ctrl+F) to look for the term ‘charges’.

3. Step 3: Now that you have tracked the total bank charges reflected in your statement, the next step is to check your bank’s website for the full schedule of bank charges. It outlines every possible bank charge, its purpose, and how often it’s levied. Look for sections such as,

a. Cash transaction charges

b. Non-maintenance of balance

c. Branch service charges

d. Cheque bounce penalties

4. Step 4: Note recurring charges and their frequency. This will reveal the bigger picture quickly. If you see unexplained deductions, contact customer support or ask at the bank branch.

To sum it up

Bank charges may seem small at first, but they can add up over time and will drain your hard-earned money. It’s time to change that.

Start by reviewing your statement regularly, keep checking ATM limits and your account’s terms; you’ll be better equipped to avoid unnecessary bank account charges.  And if your bank’s still charging you in 2025, it's time to switch to one that doesn’t.

Looking for a savings account with low or no hidden bank charges? Or a bank that prioritises transparency and customer-centric services? Then choose an IDFC FIRST Bank Savings Account, where you can:

1. Enjoy zero fee banking on IMPS, NEFT, RTGS transactions, debit card issuance, SMS alerts, and more
2. Earn up to 7% per annum on your savings, with monthly interest credits
3. Get hot deals on travel bookings, shopping, food, and diningUnlimited ATM withdrawals across India without incurring fees

So, what’s the wait for? Switch to a fee-free savings account like IDFC FIRST Bank. Your future self will thank you.

What makes an IDFC FIRST Bank Savings Account stand out?
 

1. Zero-fee banking on all savings account services, including IMPS, NEFT, RTGS, ATM transactions, Debit Card, SMS alerts, and 30+ other services
2. Earn attractive interest rates of up to 7.00% p.a. with monthly interest credits and the benefit of monthly compounding
3. Higher ATM withdrawal and purchase limits for added convenience on your Savings Account
4. Exclusive rewards and cashback offers on your savings account debit card, plus a rewarding loyalty programme through FIRST Rewards
5. Manage your money anytime, anywhere with the award-winning IDFC FIRST Bank Mobile Banking App and internet banking platform
6. Enjoy cash flow analysis, investment options, and rewards tracking, all within your digital banking experience
7. Recognised among the World’s Best Banks 2025 by Forbes in partnership with Statista