Current Account Fees and Charges: What to Expect

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:

1. Account maintenance charges
2. Monthly Average Balance (MAB)
3. Transaction fees
4. 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:

1. Comparing fee structures across different banks
2. Assessing your business's transaction patterns
3. Evaluating the cost-benefit of premium accounts with more free services