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Current Account Charges You Must Know

by Eric
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The benefits of current accounts are invaluable. They offer immediate access to funds, provide overdraft facilities, streamline bulk transactions, handle high transaction volumes, and simplify the management of expenses and revenues. All these features are crucial for the seamless operation of commerce.

Take a look at six essential current account charges you must know. 

1. Minimum balance requirements

Many banks set a minimum balance for current accounts to ensure that accounts remain active and to cover the cost of maintaining them. This requirement varies widely among banks and can depend on the type of current account you choose. 

If your current account balance falls below this threshold, you might incur a fee from the bank. Thus, it is crucial to select an account whose minimum balance criteria align with your financial capacity and transaction patterns.

2. Bulk transaction charges

Current accounts often come with a limit on the number of free bulk transactions you can conduct each month. Bulk transactions include a range of banking activities, from multiple fund transfers to large-scale payment processing. Exceeding the allotted number of free transactions may trigger a charge for each additional transaction.   

3. Fees for facilities offered

Banks offer various services with current accounts, each attracting specific fees. These can include:

  • Demand draft issuance
  • Cash pick-up and delivery
  • Debit card issuance and maintenance
  • SMS alerts
  • Overdraft facility
  • Paper statements  

To enjoy cost-effective banking services, you can opt for IndusInd Bank’s Indus Select Current Account. Benefit from doorstep banking, dynamic cash deposit limits and grouping of accounts. Although interest on current accounts is not usually offered, this digital current account features an auto-sweep fixed deposit. Any excess balance above a specified threshold gets converted into fixed deposits and earns FD-like high rates.

You can easily open a current account online with IndusInd Bank and enjoy a 100% paperless account opening process.

4. Debit card-related charges

Receiving a debit card with your current account offers convenient access to your funds. Yet, it is crucial to be aware of the fees associated with it. For instance, replacing a lost or stolen card, conducting transactions abroad, or using ATMs beyond a certain free usage limit can lead to additional charges.  

5. Cheque bounce fees

While most transactions can be performed digitally, you may still need to use cheques for certain payments. If a technical issue at the bank causes your cheque to bounce, you will not be charged any fee. However, if your cheque bounces due to inadequate funds, incorrect details, or a signature mismatch, you may incur fees.

Moreover, processing cheques from other cities (outstation cheques) or collecting cheques at correspondent bank locations might attract additional charges. 

6. Miscellaneous charges

Beyond the usual fees, your online current account may also incur miscellaneous charges for services like:

  • Balance enquiries
  • Issuing balance confirmation certificate
  • Providing interest certificates
  • Identity verification
  • Cheque status
  • PIN/TIN regeneration

These additional fees can vary; however, they add to the overall cost of maintaining a current account.

To sum up

While current accounts offer significant benefits for managing your financial operations, being aware of the associated charges is crucial to maximise their value. Thus, make sure to read the terms and conditions of your account and ask your bank about any fees you don’t understand. Also, the fee structure of current accounts can be revised from time to time, so staying informed about any changes is paramount. 

Monitor the above-mentioned charges carefully and plan your banking activities accordingly so that your current account works for you in the most cost-efficient way possible.

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