Current Account Fees and Charges: What to Expect
Disclaimer: Cash deposit limits mentioned herein are subject to change based on the Bank's discretion. Please refer to our fees and charges section for more details.
November 19, 2024
Most small to large scale businesses and traders have a Current Account. These accounts are non-interest bearing accounts that are designed to simplify day-to-day business transactions. You can use a current account to meet working capital requirements and get access to cash via overdraft facility. However, current accounts come with a set of fees and charges. Understanding these costs is crucial for effective financial management and choosing the right account for your business needs.
Common Current Account Fees and Charges
Most banks in India charge several standard fees for current accounts:
- Account maintenance charges
- Monthly Average Balance (MAB)
- Transaction fees
- Cash deposit and withdrawal charges
Now let’s understand these charges.
1. Account Maintenance Charges
These are regular fees for keeping your account operational:
- Monthly or quarterly maintenance fees.
- Charges may vary based on account type and balance maintained.
- Some banks waive fees for high-value accounts.
2. Transaction-Related Costs
Banks often charge for various transactions:
- NEFT, RTGS, and IMPS transfer fees
- Cheque book issuance charges
- Debit card annual fees
Please note that Ujjivan Small Finance Bank’s Business Edge Current Account offers free RTGS and NEFT transactions allowing you to save on money transfers.
3. Cash Handling Charges
Many banks impose fees for cash transactions:
- Charges for cash deposits above a certain limit
- Fees for cash withdrawals at non-home branches
- Charges may vary for home and non-home city transactions
Enjoy enhanced cash withdrawal limit with Ujjivan’s Maxima Current Account.
4. Non-Maintenance of Monthly Average Balance
Current accounts generally come with minimum balance maintenance requirement, which may vary based on the type of current account. Non-maintenance of account balance may attract penalty charges.
Comparing Account Costs
When choosing a current account, consider:
- Comparing fee structures across different banks
- Assessing your business's transaction patterns
- Evaluating the cost-benefit of premium accounts with more free services
Final Thoughts
Understanding current account fees is essential for managing your business finances effectively. You can choose the most cost-effective banking solution for your needs by being aware of these charges.
Simplify your business transactions with Current Account. Open a Current Account with Ujjivan Small Finance Bank and enjoy multiple benefits.
Disclaimer:
The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.
Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk. Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.
To know more about Ujjivan Small Finance Bank Products Visit:"https://www.ujjivansfb.bank.in"
All intellectual property rights, including copyrights, trademarks, and other proprietary rights, pertaining to the content and materials displayed herein, belong
to Ujjivan Small Finance Bank Limited or its licensors. Unauthorised use or misuse of any intellectual property, or other content displayed herein is strictly prohibited and the same is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person’s nationality, residence or otherwise) be contrary to law or registration or would subject Ujjivan Small Finance Bank Limited or its affiliates to any licensing or registration requirements.
