Bank Account Perks Do Not Come Free

By: Ajeet Khurana

You are paying bank charges. But do you know why you are paying them? Other than the primary banking services, banks offer many other services. That is usually why they charge "bank charges". This might come as a surprise to many. After all, most of us take it for granted that since we have an account with Bank X, we are eligible for a number of miscellaneous services.

So it is always better to find out in advance what the free services offered are and what extra services can be availed at a cost. Services are great as long as you had planned on availing of them. These include, using of the ATM card beyond a certain limit, issuing more than the allocated number of check books, or availing of bank statements in between quarters.

All these are activities that may invite additional bank charges. Small amounts could accumulate to a large amount and we might end up paying for a lot of services that we assumed we were free.

There are many situations that can lead to you overdrawing your funds from the bank account.

In a case of overdrawing, a fee is levied by the bank on the extra amount that has been withdrawn. This is merely because the bank has done you a favor by providing you with funds when you did not have enough. Another example that we can look at is that of issuing a check to a third party while being unaware of insufficient funds.

In such a case, the check will not be cleared. Instead, it will have to be presented once again after we have made arrangements for the necessary funds to be deposited. A charge will be levied on the cheque that has bounced and additional fees will be levied for representing the same. At the end of the day, all these charges will add up to quite a large amount if we are not careful with our finances.

We are responsible for ensuring that all checks we write are adequately funded. Especially checks that we might have issued lenders. In a case like this, we will have to pay the bank a certain amount to hold the cheque till we deposit sufficient funds into it. Any service carried out by the bank for our benefit will be outside of what we are eligible for. It should not surprise anyone, then, that a bank charges for these services.

Each bank has a finite number of teller machines. Hence you will often end up using teller ATM machines of other banks. However, a certain amount will also be debited from our account for the same purpose. Even though the ATM card served its purpose, it did not come for free.

A smart buyer will know what she/he is buying and what is free of charge. .

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