Banks charge certain fees for various services rendered to their customers. These charges comprise account maintenance fees, overdraft fees, wire transfer fees, ATM fees, and many more. To manage your finances efficiently you should understand the various charges collected by the banks and make an honest effort to avoid unnecessary expenses. In this article, learn about the common bank charges and their impact on your finances and strategies that can be adopted to prevent them.
What are Bank Charges?
Bank charges are fees collected by the banks for various services provided. It can be account maintenance charges, charges for using out-of-network ATMs, charges for the transfer of funds through various modes like NEFT, RTGS, IMPS, etc., and much more. The bank charges vary from bank to bank. It can impact your finances greatly if your finances are not managed effectively. Understanding the charges levied and being mindful of strategies that can help avoid these charges is crucial if you want your finances to be intact.
What are the Different Types Of Charges?
Banks charge various fees for different services provided to their customers. Understanding these charges can help you handle your finances meticulously. Here are some of the most common charges levied by the banks
- Minimum Balance Not Maintained Charges
- NEFT/RTGS/IMPS charges
- Cheque Book issue charges
- Overdraft fees
- Cheque Return Charges (Outward as well as Inward)
- ATM Transaction Charges (Beyond the free transactions allowed by the banks)
- Cash handling charges
- Debit Card Charges
- Credit Card Charges
- SMS Alerts charges
- Standing Instructions Registration Charges
- Bank Statement Charges (Physical Copy)
Top Tips to Avoid Bank Charges and Fees
The charges collected by the Banks can have a great impact on your finances. For effective financial management and to keep your finances in control you should try to avoid these charges. Let us see how
- Always maintain the stipulated minimum balance in the account. Otherwise, choose a low-fee or no-fee savings account.
- Keep a sufficient balance in the account when you issue cheques.
- Use online banking for transactions as much as possible. Most of the services are available free of cost.
- Refrain from closing fixed deposits before maturity,
- Subscribe for e-statements.
- Avoid ATM fees by using the ATM within your bank’s network
- Limit cash withdrawals in the account.
- Insist for an account-to-account transfer. This will avoid cash deposits into the account.
Top Banks Savings Account Charges
Banks stipulate the deposit of a minimum amount on opening of a Savings Account and this minimum balance has to be maintained at all times. This minimum amount varies from bank to bank. The charges collected by some of the top banks are given below:
| Name of the Bank | Minimum Deposit/Minimum balance |
| State Bank of India | Nil |
| Punjab National Bank | Varies from Rs. 500/- to Rs. 50000/- depending on the type of account |
| ICICI Bank | Rs. 10000 |
| Yes Bank | Rs. 10000 |
| HDFC Bank | Rs. 10000 |
| Canara Bank | Rs. 1000/- |
| Axis Bank | Rs. 5000 |
| RBL Bank | Rs. 5000/- |
| IDFC Bank | Rs. 10000/- |
Best Banks ATM Withdrawal Charges
Banks collect charges for withdrawals beyond the free transactions limit. The charges vary between banks. Here is a list of ATM Withdrawal Charges collected by the top banks for transactions exceeding the free transactions limit.
| Bank | ATM Withdrawal Charges (in Rs) |
| SBI | Rs. 10/- at SBI ATMs and Rs. 20/- at Non-SBI ATMs |
| Punjab National Bank | Rs.10/- per transaction |
| HDFC Bank | Rs. 21/- per transaction |
| ICICI Bank | Rs. 21/- per transaction |
| IDFC Bank | 20/- per transaction |
| Axis Bank | 20/- per transaction |
| HDFC Bank | 21/- per transaction |
| HSBC | 20/- per transaction |
| RBL | 21/- per transaction |
Top Banks FD Charges For Premature Withdrawal
When closing a fixed deposit (FD) before maturity, the bank pays interest for the active period. The applicable interest rate will be the lower of the rate at opening or present date. Additionally, a penalty of 0.50% to 1% is charged, varying by bank. Here are penalty rates for top banks.
| Bank | Penalty |
| SBI | 0.50% for deposits up to Rs. 5.00 lakhs and 1% for deposits over Rs. 5.00 lakhs |
| ICICI Bank | For deposit tenors less than 1 year 0.50%, 1 year and above 1% |
| Canara Bank | 1% (all tenor) |
| Yes Bank | For tenor less than and equal to 181 days 0.50% and for over 182 days 1% |
| IDFC Bank | The penalty will be as per the prescribed rate on the date of premature closure |
| Punjab National Bank | 0.50% to 1% depending on the tenor |
| Bank of Baroda | Nil for deposits up to Rs. 5.00 lakhs and 1% for deposits over Rs. 5.00 lakhs |
| Karnataka Bank | No penalty for deposits up to Rs. 2.00 crores. 1% for deposits 2 crores and above |
| Union Bank | 1% for all tenors |
| Kotak Mahindra Bank | 0.50% for all tenors |
Top Banks NEFT Charges in 2023
The top banks NEFT charges in 2023 are as given below
| Bank | NEFT Charges (Amt in Rs.) |
| SBI Bank | Up to 10000- 2 + GSTAbove 10000 up to 1 lac-4 + GSTAbove 1.00 lac to 2 lacs-12 +GSTAbove 2 lacs-Rs. 20 + GST |
| Kotak Mahindra Bank | Up to 10000-2 + GST10001 to 1 lac-4 + GSTAbove 1 lac to 2 lacs-14 + GSTAbove 2 lacs-24 + GST |
| Punjab National Bank | Up to 10000-2.25 + GST10001 to 1 lac-4.75 + GSTAbove 1 lac to 2 lacs-14.75 + GSTAbove 2 lacs-24.75 + GST |
| Axis Bank | Up to 10000-2.5 + GST10001 to 1 lac-5 + GSTAbove 1 lac to 2 lacs-15 + GSTAbove 2 lacs-25 + GST |
| HSBC | Up to 10000-2.5 + GST10001 to 1 lac-5 + GSTAbove 1 lac to 2 lacs-15 + GSTAbove 2 lacs-25 + GST |
| HDFC Bank | Up to 1.00 lac-2 +GSTAbove 1.00 lac-10 + GST |
| Yes Bank | Up to 10000-2.5 + GST10001 to 1 lac-5 + GSTAbove 1 lac to 2 lacs-15 + GSTAbove 2 lacs-25 + GST |
| Canara Bank | Up to 10000-2.25 + GST10001 to 1 lac-4.75 + GSTAbove 1 lac to 2 lacs-14.75 + GSTAbove 2 lacs-24.75 + GST |
| Union Bank | Up to 10000-2.5 + GST10001 to 1 lac-5 + GSTAbove 1 lac to 2 lacs-15 + GSTAbove 2 lacs-25 + GST |
Top Banks RTGS Charges 2023
The RTGS charges collected by top banks in 2023 are given below
| Bank | RTGS Charges (Amt in Rs.) |
| SBI Bank | 2 lac to 5 lac-20 + GST5 lac and above-40 + GST Charges are applicable for RTGS done through the branch. RTGS done online is free |
| Kotak Mahindra Bank | 2 lac to 5 lac-20 + GST5 lac and above-40 + GST |
| Punjab National Bank | 2 lac to 5 lac-24.50 + GST5 lac and above-49.50 + GST |
| Axis Bank | 2 lac to 5 lac-25 + GST5 lac and above-50 + GST |
| HSBC | 2 lac to 5 lac-19 + GST5 lac and above-44 + GST |
| HDFC Bank | 15 + applicable charges |
| Yes Bank | 2 lac to 5 lac-25 + GST5 lac and above-50+ GST |
| Canara Bank | 2 lac to 5 lac-24.50 + GST5 lac and above-49.50 + GST |
| Union Bank | 2 lac to 5 lac-225 to 30 + GST depending on the time of remittance5 lac and above-50 to 55 + GST depending on the time of remittance. |
Top Banks IMPS Charges in 2023
The RTGS charges collected by top banks in 2023 are given below
| Bank | IMPS Charges (Amt in Rs.) |
| SBI Bank | Up to 1000-2 + GST1000 to 1.00 lac-4 +GST1.00 lac to 2 lac-12 + GST2.00 lac to 5.00 lac-20 + GST |
| Kotak Mahindra Bank | Up to 1.00 lac-5 + GST 1.00 lac to 2 lac-15 + GST |
| Punjab National Bank | Up to 1000-Nil1000 to 1.00 lac-5 +GST Above 1.00 lac-10 + GST |
| Axis Bank | Up to 1000-2.50 + GST1000 to 1.00 lac-5 +GST1.00 lac to 5 lac-10 + GST |
| Union Bank | Up to 10000-2.5 + GST10001 to 1 lac-5 + GSTAbove 1 lac to 2 lacs-15 + GSTAbove 2 lacs-25 + GST |
| HDFC Bank | Up to 1000-3.50 + GST1000 to 1.00 lac-5 +GSTAbove 1 lac-15 + GST |
| Yes Bank | 5 per transaction |
| Canara Bank | No charges |
| IDFC Bank | No charges |
Bank Charges : FAQs
The common bank charges are minimum balance maintenance charges, ATM fees, NEFT/RTGS/IMPS fees, wire transfer fees etc.
Yes. You can by maintaining a minimum balance in the account, using an ATM within your bank’s network, not using funds beyond the available balance, limiting cash withdrawals, etc.
A fee is charged when you use funds beyond the available balance in your account.
Yes. Many banks charge fees for transactions in foreign currency, whether inward or outward.
If you are a loyal customer of the bank, you can negotiate for a waiver of these charges.
