Finance

Understanding Mobile Banking Fees: What You Need To Know

Mobile banking has become an increasingly popular way for Indians to manage their finances. With the convenience of accessing your account from your smartphone, you can even easily apply credit card online.

It’s no surprise that many people are turning to mobile banking for activities like, transferring money, checking account balance, apply for credit card and the list goes on. However, like with any financial service, there are fees associated with mobile banking that you need to be aware of. This article will enlighten you about the most common mobile banking fees in the Indian context and what you need to know about them.

Monthly Maintenance Fees

After you apply for a bank account online open an account after that, monthly maintenance fees is a common fee that is associated with online bank accounts. Banks typically charge these fees to cover the cost of maintaining your account. The amount of the fee can vary depending on the bank, but it typically ranges from Rs. 50 to Rs. 500 per month.

If you maintain a minimum balance or make a certain number of monthly transactions, some banks may waive this fee. Before signing up for a mobile banking service, review the bank’s fee schedule to determine if there are any monthly maintenance fees and what you can do to avoid them.

ATM Fees

Another common fee associated with mobile banking in India is the ATM card fee. When you use an ATM that is not affiliated with your bank, you may be charged a fee by both the ATM owner and your bank. These fees can add up quickly, especially if you frequently use ATMs that are outside your bank.

To avoid ATM fees, look for ATMs affiliated with your bank. Most banks in India have their ATM network, and using these ATMs is usually free of charge. Additionally, some banks offer free withdrawals from ATMs not affiliated with their network if you maintain a certain minimum balance in your account.

Transaction Fees

Transaction fees is another fee associated with mobile banking in India. These fees are charged every time you make a transaction, such as transferring money to another account or paying a bill through the app. The fee can vary depending on the bank and the type of transaction, but it typically ranges from Rs. 2 to Rs. 25 per transaction.

To avoid transaction fees, look for a bank that offers free transactions or has a low transaction fee. Some banks also provide a certain number of free transactions per month, so be sure to review the bank’s fee schedule to determine if any free transaction options are available.

Foreign Transaction Fees

Your mobile banking app may charge you a foreign transaction fee, if you use it outside of India. The bank charges this fee to cover the cost of processing transactions in a foreign currency. The amount of the fee can vary depending on the bank, but it typically ranges from 1% to 5% of the transaction amount.

To avoid foreign transaction fees, look for banks that offer fee-free foreign transactions or have a low foreign transaction fee. Some banks also provide a certain number of free foreign transactions per month, so be sure to review the bank’s fee schedule to determine if any free foreign transaction options are available.

Overdraft Fees

You may be charged an overdraft fee, if you use mobile banking to access an overdraft facility. An overdraft fee is charged when you withdraw more money than you have in your account. The fee can vary depending on the bank, but it typically ranges from Rs. 250 to Rs. 500 per overdraft transaction.

To avoid overdraft fees, keep a track of your account balance and avoid withdrawing more money than you have in your account. Some banks also offer overdraft protection plans, which can help you avoid overdraft fees if you accidentally overdraw your account.

Hence, it’s crucial to understand the fees to make informed financial decisions with mobile banking. By reviewing fee schedules, users can ensure they’re getting the most value for their money.

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