‘Free Services’ or Hidden Fees? How Bank Charges Are Draining Your Wallet

In today's digital world, banks are all about 'free' services. But the reality is different. They are quietly deducting money from our accounts through various hidden charges. The biggest trap is the 'Minimum Balance' rule. Banks say it's a 'Zero Balance' account when you open it, but most savings accounts need you to maintain a minimum amount. If your balance drops, they slap a penalty without any warning. This really hits the savings of poor and middle-class people hard.

Banks charge you for withdrawing cash from their own ATMs after a few free transactions. On top of that, they also charge you for other things. For instance, you have to pay an annual maintenance fee for your debit card. They also cut money every few months for the SMS alerts they send you. Need an extra cheque book? You pay for that too. Even digital transfers like IMPS/NEFT have small fees after a certain limit. Each charge looks small, but when you add it all up for a year, it becomes a huge amount.

For every single fee the bank charges you, the government adds an 18% GST on top. This is like a double blow for customers. What's more, the penalty for a bounced cheque or a failed ECS payment due to low balance is extremely high. Banks make a lot of money from these penalties.

We need to remember that banks are businesses trying to make a profit. But there are ways to escape these hidden charges. First, always read the 'Terms and Conditions' properly before opening an account. Second, avoid services you don't need, like extra credit or debit cards. Third, use the bank's mobile app for transactions. Many services are cheaper or even free on the app compared to visiting a branch. While banking has become easier, these 'free' services are actually costing us. The only way to protect our money is to stay alert and check our bank statements regularly.