ATM fees to minimum balance: Federal Bank announces new service charges

Private lender says it is increasing charges to meet operational costs and promote digital banking

Federal Bank will from June 1 revise service charges for a range of everyday banking activities, including ATM usage, locker rent, and account maintenance penalties. The new charges will align services with operational costs and promote digital banking, according to the bank’s website.

 

ATM Transaction Charges

 

Transactions at Federal Bank ATMs remain free without a set limit, unless otherwise specified. Federal Bank customers will continue to get five free transactions per month at ATMs of other banks: three in metro cities and five in non-metro locations.

 

After these free limits:

 

Cash withdrawal will be charged at Rs 21 per transaction.

 

Non-financial transactions (like balance inquiries) will cost Rs 8.

 

Failed transactions due to insufficient funds will incur a fee of Rs 25.

 

Cash transaction charges

 

Savings account holders can make free cash deposits and withdrawals up to five times or Rs 5 lakh per month, whichever comes first. Beyond that:

 

A charge of Rs 4 per Rs 1,000 (or part thereof) will apply.

 

The minimum fee per additional transaction is Rs 100.

 

This is likely to encourage digital alternatives for routine transactions.

 

Minimum balance charges

 

Federal Bank has asked customers to maintain a monthly average balance (MAB), depending on the account type. Delite and Club savings accounts require a MAB of Rs 5,000.

 

Failing to maintain the required balance will lead to penalty charges that vary by shortfall percentage:

 

Up to 20 per cent shortfall: Rs 75

 

More than 80 per cent shortfall: Up to Rs 375

 

Senior citizens and rural customers are eligible for discounted penalty slabs.

 

Locker rent charges

 

Locker rent varies based on location and locker size. For example:

 

In rural branches, small lockers may cost between Rs 2,000 and Rs 5,500 annually.

 

In metro areas, the rent ranges from Rs 2,950 to Rs 12,800 for small to extra-large lockers.

 

A refundable key deposit is also applicable.

 

Other service charges

 

Inward cheque return: Rs 500 per instance and Rs 400 for senior citizens and rural customers.

 

Account closure charges:

 

Nil if closed within 14 days of first funding.

 

Rs 100-Rs 300 if closed within six to 12 months, depending on customer category.