Current Account Fees and Charges: What to Expect

November 21, 2024

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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.

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FAQs

1. Can current account fees be negotiated with banks?

Yes, some banks may offer fee waivers or reductions based on your business volume, relationship with the bank, or if you maintain high balances. Talking about choices with your bank manager is a good idea.

2. Are there ways to minimise current account fees?

You can reduce fees by maintaining the required minimum balance, using digital banking services, limiting cash transactions, and choosing an account type that suits your transaction patterns.

3. How often do banks typically revise their fee structures?

Banks usually review and revise their fee structures annually. However, they may change more frequently based on market conditions or regulatory requirements. Always stay updated with your bank's communications.

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