When the term ‘bank charges’ comes to mind, an awful image of dwindling money bundles appears with it. Thanks to the new banking regulations, there is a hike in everything; account maintenance fee, excess withdrawal charges as well as minimum balance penalties. The result? Increase in monthly expenses, daily budget quota and decrease in the allocation of happiness.
But Christmas is in the air and New Year is around the corner, so here are we, hammering up our minds to invent ways to help you out. The following list is a carefully compiled and thoroughly studied result of team labor and you have to go through it if you want to reclaim your happiness.
1. Bank Statement Charges- Make use of internet and go online: You might be going for a car loan or a home loan this season for your precious new buys. Or it can be a personal loan to manage your expenses. You need bank statements for all these. Traditionally we are in the habit of walking to the branch to get a statement copy. But this time, you can opt for their online banking services instead of walking into the bank to avoid charges for services like asking for a bank statement. Remember the bank is not charging you to make a new revenue stream. They only want to inculcate the habit of using online services to keep the load off their banking premises. So, this shopping season, save both your time and money, and order your online bank statement home while sipping your hot cuppa.
2. Miscellaneous Charges- Become a profitable customer: While you are busy doing your shopping, who has the time to monitor the various bank charges that may be gnawing into your wallets unknowingly. This is applicable especially if you are a business man who has too many cheque transactions, over drafts and others. As a priority customer, many miscellaneous bank charges get waived off and you can save some precious bucks.
Many banks are offering priority-banking services for free. However, some banks charge for the same. You can become a priority customer by holding high value of direct deposits. You many also be seen as a profitable customer if you help the bank decrease customer cost by not asking for paper statements, opting for online banking, etc. As a profitable customer, there are chances that you will become a priority customer of the bank.
3. AQB charges- The power of few polite words: Shopping spree can leave your bank account dry for a long time. This is where the banks penalize customers for not maintaining their AQB or average quarterly balance. It is a season of joy and polite words can go a long way to save precious bucks.
I remember this particularly pleasant instance when my father did not maintain his AQB unintentionally and he was charged a min AQB fee, which is around a few hundred rupees in most of the banks. But my father talked to his bank relationship manager and they quite gladly waived off the fee because dad had missed that for first time in 8 years and well, he is a man of words.
If you have a good history with the bank, do not hesitate to ask for mercy because you are their valuable customer who is bringing them money over money. And no bank would want to unfriend a profitable customer for a few hundred rupees of penalty. Do not forget to smile and say please though, just for the icing on the cake.
4. Transactions on Credit: If you are shopping, the known fact is “cash is king.”However, you need to watch out for timely credit card bill payments to avoid interest charges. Many people are in the habit of settling minimum due charges for credit card and try to enjoy more credit period. But in actual, they are paying heavy interests for the credits.
5. ATM Charges-Plan Your Shopping Route Smartly: While you are on a move during shopping and you run out of cash, it is likely you would withdraw money from the nearest ATM. Most Banks charge a noticeable fee when you withdraw money beyond a prescribed limit from the ATMs of banks other than yours, or carry more than 5 transactions a month, even if it is balance enquiry. This fee is avoidable too with smart thinking and planning. Make sure you know where your bank’s ATM is on your shopping route, so that you can plan for your cash outage accordingly. Use Debit card for shopping wherever possible while earning more reward points for shopping.
You do not need to have all of your accounts-current, savings and fixed in one bank. Compare the policies and rates of different banks to come up with the most efficient banking portfolio.
For example, if you want to have a free checking account or general savings account then some hot shot international brand might turn out to be a money-killer. Instead, look for the local banks offering lowest interest rates. Likewise, for current account or a business account, a big business bank is the perfect choice. Being informed and makes the right choices will save you a lot on daily bank charges.