These steps you can take to avoid paying more to your bank.
Use the ATM wisely
Why: Several banks allow only five free transactions, even at their own ATMs. If you can’t do without cash, withdraw larger amounts at a time to avoid paying more.
You save: Rs 10-20 per withdrawal, Rs 5-8.50 for non-financial transactions.
Junk the cheques, switch to Netbanking
Why: Every additional chequebook attracts charges. Transfer funds through Netbanking for free.
You save: Rs 20-150 per chequebook, depending on number of leaves.
Clear credit card bills on time
Why: The outstanding amount will continue to attract hefty interest rates.
You save: 39-42% per annum in interest. Delay of three days could attract charges of up to Rs 750.
Take the auto-debit route for card bills
Why: Set up an auto-debit mandate instructing your bank to deduct a minimum 5% of credit card bill on due date to avoid steep penalty.
You save: 39-42% per annum that would have been levied on the unpaid amount.
Sign up for Bill Pay services
Why: Utility companies levy late payment fee on delayed bill payments. Bill pay services or standing instructions to your bank ensure your bills are cleared on time.
You save: Penalties ranging between from Rs 40 and Rs 100, depending on the utility company.
Opt for duplicate statements on email
Why: Banks charge a fee for issuing duplicate physical statements or passbooks.
You save: Rs 100
Avoid cash transactions at branches
Why: Banks allow 3-4 free cash transactions at branches in a month.
You save: Rs 50-150 per transction.
Maintain minimum balance at all times
Why: Not maintaining the required balance attracts non-maintenance charges.
You save: Rs 10-600 per month.
Do not issue cheques when the balance is inadequate
Why: Not only can dishonouring cheques attract charges, it is also a criminal offence under the Negotiable Instruments Act.
You save: Rs 500-750 per cheque.
Issue stop payment instructions online
Why: Some banks charge a fee for countermanding cheques through the physical route.
You save: Rs 100-200.
Never withdraw money with your credit card
Why: Issuers levy a transaction fee, in addition to interest payable.
You save: 2.5% of the amount withdrawn or a minimum of Rs 300-500.
Don’t exceed your credit limit
Why: If your card usage exceeds the credit card limit granted to you, your card issuer will levy a fee for extending this facility.
You save: 2.5% of the over limit amount or Rs 500.