In today’s digital world, a salary account has become an indispensable part of every professional’s life. While you diligently earn your salary and manage your finances to fulfil your goals, it is equally important to ensure that your hard-earned earnings aren’t being diminished by potential hidden charges associated with your salary account. This guide delves into the intricacies of common fees associated with your salary account and tips to avoid them to safeguard your financial dreams.
Common hidden charges in salary accounts that you need to be aware of
Minimum balance fees
Many banks require a minimum balance to avoid penalties. If your salary is not credited for a specified period (usually three months), the account might have to maintain AMB. For instance, some banks impose charges if the average monthly balance falls below certain thresholds, which can range from ₹50 to ₹400 depending on the balance level.
ATM and transaction fees
- Out-of-Network ATM fees: Using ATMs outside your bank’s network can incur fees, which vary across different banks.
- Excessive transaction fees: Some banks charge fees if you exceed a certain number of transactions per month, particularly for electronic transfers or withdrawals.
Account maintenance fees
While many salary accounts are marketed as “zero-balance accounts”, some banks may still impose maintenance fees if specific conditions aren’t met, such as regular salary credits or maintaining a minimum balance.
- Inactivity fees
If your account remains inactive for an extended period, banks may charge inactivity fees. This discourages keeping accounts open for emergencies or less frequent use.
Cheque and transfer charges
- Cheque bounce fees: If a cheque you issued bounces due to insufficient funds, you may incur a charge (often around ₹200, but might vary across banks).
- Fund transfer charges: Electronic transfers like NEFT or RTGS might attract fees after exceeding a certain number of free transactions.
Debit card and other service charges
- Debit card maintenance fees: Some banks charge annual fees for debit cards, especially for premium cards.
- SMS alerts: While essential for security, receiving SMS alerts about account activity may come with monthly or annual charges.
How can you avoid such hidden charges that silently erode your money?
- Choose the right account:Research various salary accounts and select one with minimal or no maintenance charges. Look for accounts specifically designed for employees that offer fee waivers.
- Maintain required balances:Regularly monitor your account balance to ensure it meets the minimum requirement to avoid penalties.
- Use in-network ATMs:Stick to ATMs within your bank’s network to avoid withdrawal fees.
- Limit transactions:Be mindful of transaction limits set by your bank to avoid excessive transaction fees.
- Stay informed:Regularly review your bank statements and understand the fee structure outlined in the terms and conditions when opening an account.
A solution that incorporates all this and much more
Apart from those listed above, one of the most effective strategies to avoid such hidden charges is opting for a salary account that not only offers fee waivers but also transparency and various value-added benefits. Designed to align with your financial goals, the IDFC FIRST Bank Salary Account offers a platform to help you grow your savings with zero fee banking (where no charges are levied for services like IMPS, RTGS, ATM transactions, Cheque book, debit card issuance and more), best-in-the-class interest rates, and monthly interest credits. Other benefits include:
- The convenience of free services like RTGS, IMPS, and SMS alerts
- The added security of insurance coverage for personal accidents and air travel
- Access to 250+ mobile banking services
- Exclusive OTT subscriptions and brand discounts
- Paving the way for the right choice
Being vigilant about hidden charges in your salary account is paramount to safeguarding your financial health and maximising your hard-earned income. By understanding the various fees and charges that many banks might not be so transparent about, you empower yourself to make informed decisions and avoid any unwelcome surprises that could impact your financial well-being.
By trusting IDFC FIRST Bank to guide your financial journey, you not only shield yourself from hidden charges but also open the door to a realm of benefits that elevate your banking experience to new heights.
Apply online today and explore the realm of premium banking with IDFC FIRST Bank for a secure financial future!
