Hidden Costs? You Might Be Paying Annual Fees for Your ATM Card
If you don’t actively use your ATM card, it’s wise to either close it or switch to a no-annual-fee basic card. Being informed can help you save hundreds—if not thousands—of rupees every year.
Hyderabad: In today’s world, an ATM card has become a basic necessity. But while most people use it frequently, very few are fully aware of the annual charges associated with it. If you’re unknowingly paying fees for your card every year, this report is a must-read.
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Annual Maintenance Charges You Might Be Ignoring
Many of us use our ATM or debit cards regularly, but did you know that banks charge an Annual Maintenance Charge (AMC) for them? Yes, using an ATM card isn’t entirely free. In addition to the AMC, banks also deduct up to 18% GST, which further increases the cost.
Extra Charges Beyond Withdrawal Limits
If you frequently withdraw cash from ATMs, you should also be aware that there’s a limit on free transactions. Beyond this limit, banks charge additional fees. These policies vary from bank to bank, and the annual charges depend on the type of card and the range of services it provides. AMC can range anywhere from ₹0 to ₹2,000, excluding GST.
Custom Debit Cards Come at a Higher Cost
Private banks often issue customized or premium debit cards, which come with even higher annual charges. The maintenance fee is deducted automatically from your account every year, regardless of whether you use the card or not.
Why Banks Charge You Annually
Banks justify these charges as necessary to maintain the various services linked to ATM cards, such as cash withdrawals, online payments, SMS alerts, and email notifications. These services require continuous infrastructure and support, for which banks collect the AMC.
Is There a Way to Avoid These Charges?
Yes, there is a solution. Many banks offer basic debit cards with zero annual charges, but these are typically limited to essential services like cash withdrawals. However, banks usually don’t inform customers about these options. If you want to switch to a basic card, you need to request it explicitly at your bank.
Misconception About Card Usage and Charges
A common misunderstanding is that if you don’t use your card, you won’t be charged. But in reality, as long as your ATM card is active, the bank will automatically deduct AMC and GST annually, even if the card is lying unused in your wallet.
If you don’t actively use your ATM card, it’s wise to either close it or switch to a no-annual-fee basic card. Being informed can help you save hundreds—if not thousands—of rupees every year.
