There are many fees associated with using an ATM, which might add up very quickly if you do not know of their existence. Banks set their own fee structures on services, which means that the ATM cardholder may be paying for services that they assume are free. Knowing about these hidden charges and how to avoid them can help you save from unnecessary expenses.
Transaction Fees
Most banks will allow a small number of free ATM withdrawals, commonly between three and five per month. If the number of ATM withdrawals exceed this limit, banks will charge a fee, typically between Rs 20 and Rs 50 per transaction. Drawing cash at an ATM outside of your bank’s network will also carry some charges, typically Rs 20 or more for each withdrawal. Banks levy charges on customers for all balance inquiries and mini statements at non-bank ATMs, normally as unbilled services.
Annual Service Charges And Debit Card ATM Transaction Charges
All major banks normally have an ATM card that costs between Rs 100 and Rs 300 per year. This is usually mentioned in the document the bank sends while issuing a new card. Premium cards with higher withdrawal facilities or co-branded facilities, usually come with a higher annual charge.
Cross-Border Transactions Charge
Using an Indian ATM card in a foreign country can be highly expensive because of the conversion fees on the currency, which is usually charged at the rate of 3-5 per cent over the amount withdrawn.
Some international ATMs also charge a usage fee, which makes withdrawals quite expensive when abroad. While traveling, you may talk to your bank about having your fees waived or perhaps use a card specifically meant for international transactions.
How To Avoid ATM Charges
Try to keep your withdrawals per month within the free limit specified by your bank to avoid unnecessary transaction fees.
Try to use your bank’s ATM for making withdrawals to avoid network fees.
Learn about the number of free transactions and such other related fees charged by your bank. Some banks will even provide you with higher limits when performing transactions without charging extra costs.
Try to use digital payment methods so that you do not have to make emergency cash withdrawals at ATMs. This way you will be able to limit your ATM withdrawals and thus avoid unnecessary ATM fees should you exceed the free limit of withdrawals or end up using an ATM of another bank.
Many banks have premium accounts where the transactions at the ATM are unlimited. Check with your bank for details.
