Most banks worldwide levy charges for many of their services, which often adds up to a lot of unnecessary expenses over a period of time. IDFC FIRST Bank recently introduced Zero-Fee Banking, which offers 28 commonly used savings account-linked services for free.
Fees and charges are often imposed by banks on basic services provided to their savings account holders. The amount varies from bank to bank, and is also based on the type of service you are accessing. Let's take a closer look at various bank charges and why you should choose a bank that does not charge you for commonly used services.
Does your bank charge you?
It’s important to check the bank charges before opening an account. The nature of the services often availed can differ from person to person. Therefore, based on your needs, you need to find out if the services you want are free. You should check what other banks charge if there’s a fee levied on your preferred service.
For example, if you often transfer money electronically, make sure that the bank does not charge you for these transfers (or has a lower fee). Or if you frequently deposit or withdraw money into/from your account from third party locations, a bank that does not levy unnecessary savings accounts charges would be an obvious choice.
What is zero-fee banking?
IDFC FIRST Bank launched its ‘Zero Fee Banking’ promise in December 2022 for all its savings bank account holders. Under this feature, it shared a list of bank charges specifying 28 banking services for which no fees will be charged.
For instance, no bank charges are applicable for electronic money transfers, including IMPS, NEFT, or RTGS. Issue of demand draft/pay order, issue of interest and balance certificate, and photo/signature attestation do not entail a fee either. There are a few services included in the list of more than 28 services for which IDFC FIRST Bank does not charge any fee from its customers.
Who benefits from zero-fee banking?
Zero-Fee Banking will benefit all those who have a savings bank account that requires maintaining a monthly average balance of Rs 10,000 or more. Account holders who maintain multiple fixed deposits with the bank will also benefit as no charges will be levied for issue of interest certificate on fixed deposits. Even people of modest means who carry out small transactions frequently and who cannot afford regular bank charges will be able to save a lot of money.
Who should opt for zero-fee banking?
Everyone should opt for Zero-Fee Banking as it offers several benefits. Many of us are apprehensive about hidden bank charges and it is difficult for a layperson to predict or even comprehend various charges levied by banks. Unlike traditional banking methods, it does not involve hidden bank charges, ensuring complete transparency for bank customers.
Additionally, Zero-Fee Banking ensures faster transaction processing and saves you time as transactions are not delayed due to pending fee recovery. This also brings convenience for customers and ensures a better banking experience.
The free services covered under Zero-Fee Banking allow you to save your hard-earned money. Over time, this can translate into substantial savings. In addition to the higher interest rates and monthly interest credits IDFC FIRST Bank offers on its savings accounts, Zero-Fee Banking maximises the potential of your savings. This means you get more to save, more to invest, more to spend and, in short, get #MoreFromYourBank.
Moneycontrol Journalists were not involved in the creation of the article.
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