A salary account may not require you to maintain a minimum balance, but that does not mean all its banking services are free. Banks offer zero-balance benefits as long as salary is credited regularly. If those deposits stop, the account may be treated differently and could attract minimum balance requirements. Customers may also have to pay for services such as certain transactions and additional banking facilities.
Here are six bank charges you should keep an eye on.
1. Minimum balance charges
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The zero-balance facility offered with salary accounts is not necessarily permanent. If an account does not receive salary deposits for a stipulated period, the bank may reclassify it as a standard savings account. This can bring minimum average balance rules into effect, with penalties for failing to meet the prescribed threshold.
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2. ATM withdrawal charges
Free ATM access comes with a monthly cap, which varies depending on the bank and account category. Customers who exceed the permitted number of transactions may have to pay additional fees. These charges are not restricted to cash withdrawals and can also apply to certain non-financial activities. Frequent use of ATMs operated by other banks could add to the expense.
3. Debit card annual fees
A debit card offered as part of a salary account package is not always free for its entire validity period. Banks may recover an annual fee or renewal charge once the initial offer expires. Customers holding premium cards could face a bigger bill than those using standard variants.
4. SMS alert charges
Receiving regular text messages about deposits, withdrawals and other account activity may come at a small cost. Several banks levy fees for SMS alerts, with the amount and billing frequency varying across institutions. Customers should check whether these notifications are included in their account package or billed as a separate service.
5. Cheque-related charges
Using cheques frequently may involve expenses that account holders tend to overlook. Banks generally offer a limited number of cheque leaves free of cost, after which customers may have to pay for fresh books. A cheque returned due to inadequate funds can attract a penalty, while some stop-payment requests may also carry a fee.
6. Non-maintenance and service charges
Some routine banking requests can carry additional costs. Customers may have to pay for services such as obtaining duplicate account statements, replacing misplaced debit cards or requesting printed copies of their statements. Banks may also levy fees on cash deposits and withdrawals that exceed the limits set for a particular account.
What Should Account Holders Do?
Going through the bank's fee schedule and checking account statements each month can help identify unexpected deductions. Employees who have stopped receiving regular salary credits should also contact their bank to confirm whether the account still retains its salary account status or has been shifted to a standard savings account.
A salary account offers convenience when it comes to receiving income and handling routine payments. Yet, the benefits come with certain conditions and charges. Being aware of these costs can help account holders avoid unnecessary expenses and keep their money from being chipped away by small deductions.
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