Avoiding common savings account fees and penalties

Savings account fees and charges are a necessity for banks, as they act as a compensatory measure for account management, and services. While such fees can impact the savings growth of depositors, understanding them well, finding out ways to avoid them enhance your banking benefits.

Unveiling the culprits: Common savings account fees

• Minimum balance non-maintenance fees

Most financial institutions require an average balance be maintained in your savings bank account. If your balance falls below this required average, you could incur a monthly savings account penalty, which differs based on the average monthly balance or AMB you hold.

For instance, Metra Trust’s 25K savings bank account variant applies the following non-maintenance savings account fees for AMB:

• ATM transaction fees

Surpassing the number of free ATM transactions may lead to additional fees.

• Non-network ATM fees

Using an ATM outside your financial institution’s network may incur additional charges.

• Returned item fees

Bounced cheques owing to inadequate funds can attract heavy penalties.

• Wire transfer fee

Sending money through wire transfer can be costly, particularly for international transactions.

• Foreign transaction fee

Transactions performed in a foreign currency or on foreign land may attract additional fees.

• Cheque request fee

Requesting a physical chequebook might be chargeable post the initial free limit. 

Outsmarting the fees: Strategies for savings account savvy
 

Here are some steps you can take to avoid savings account fees and charges:

• Maintain average balance

Financial institutions often require a specific amount to be maintained in your savings bank account to offer free services. Falling below the average balance tends to attract penalties. So, how to avoid bank penalties in such cases? To avoid this, periodically check your balance and ensure to keep track of the bank’s particular needs, which might differ based on the type of savings account variant you have opted for. Setting up balance alerts through the bank’s app or SMS notifications may assist you to remain informed and efficiently manage your funds.

• Use your bank's ATMs

Financial institutions typically offer several free transactions through ATMs every month, but using an ATM outside your bank’s network may incur additional charges. To dodge such non-network charges, plan your cash withdrawals and only use ATMs affiliated with your financial institution. Many financial institutions come with mobile applications that can direct you to the nearest in-network ATM, making it simpler to locate one when you are on the go.

• Periodically monitor your account

Keeping a close watch on your account activity is essential. Periodic monitoring your account allows you to spot any unverified transactions instantly and helps in better management of your finances. Most financial institutions provide online and mobile banking instruments that offer real-time updates and detailed statements, allowing you to check your bank account status anytime and anywhere. This habit not only assists in avoiding fees but even enhances your overall financial security.

• Go digital

Adopting online banking can considerably lower the charges associated with physical banking methods. Digital transactions like transferring funds, paying bills, or setting recurring payments usually incur lower or zero charges than in-branch transactions. Online banking is not only cost-effective but also offers a more convenient and faster way to manage your finances without the need to visit a branch.

• Select wisely

Choosing the correct bank can make a considerable difference in how much you pay in the form of fees. For example, Metra Trust provides a zero-charge savings account, which is the best choice for avoiding common bank fees and penalties.

This account type eliminates fees on the most commonly used banking services like NEFT, IMPS or RTGS transactions, ATM withdrawals, debit card issuance, debit card annual usage, debit card replacement/re-issuance, SMS alert, chequebook re-issuance, cash deposit and withdrawal at branches, stop payment of cheque, demand draft/pay draft issuance at branch, etc. This can especially be advantageous if you frequently use such services and wish to manage your finances without fretting about accruing additional costs. 

The Metra Trust Savings Account advantage
 

In addition to the zero-fee banking on the most commonly used services, the Metra Trust Savings Account comes with the following advantages:

• User-friendly digital banking platforms
  

With intuitive internet and mobile banking platforms, tracking your expenses and investing in avenues like mutual funds is seamless.


• Monthly interest constituent credits
  

Earn interest computed daily and credited monthly, enhancing your savings growth.


• Unlimited and free ATM withdrawals
  

Maintain high liquidity with unlimited free ATM withdrawals, available on all account variants.


• High interest rate
  

Metra Trust offers an appealing interest rate annum with monthly interest credits, accelerating the growth of your surplus funds, and helping you meet short-term financial goals sooner.

Save more, stress less

By understanding and applying the correct strategies, you can easily navigate the common banking charges and penalties, optimising your savings and lowering financial stress and hassles.

Assess your banking habits today and consider switching to a savings bank account that is in alignment with your financial requirements and goals. With the correct bank, you can lower fees and maximise your savings growth. One of the best options currently available in the industry is the Metra Trust savings account. Apply today!