What Is Bank Inactivity Fee

What Is Bank Inactivity Fee

2020/01/12

To keep our funds safely we open a bank account. We can even hold multiple bank accounts. Moreover we also get interest on deposits made to these accounts. We frequently use our bank account to make payments and perform withdrawals as and when we need funds.

There are various kinds of charges which a bank levies on the services provided by it. For Instance, whenever you request for a demand draft, you need to pay some amount. Different banks may charge different amount for different kind of services provided by them.

As soon as we open an account and deposit money into it, we feel relaxed, also it is a common perception that even if we are not using the account, we are not under any obligation for anything. So we keep an account open irrespective of how frequently we use it for our purposes. Many people hold multiple accounts with different banks while they prefer to use only a single account for their transactions. Most of the times, we are of the opinion that we may need an account in the near future and hence keep avoiding its closure.

Interest Earned Versus Non Activity Fees

Even though we earn interest on whatever balance we have in our accounts, there is a possibility that due to inactivity in our account, bank may have imposed a certain fees. This fee generally arises on account of non performance of any kind of activity (deposit or withdrawal) in any bank account. This fee is however levied only when there has been no activity for a long period of time in an account. A bank will not levy any fee if no activity has been performed for only a month or two.

Understand the Fees Structure

While opening an account with a bank may not appear to be a complex process, it is important to understand the bank’s fee structure for different kind of services. Inactivity fee is something which is not frequently communicated by the bank to the customer at the time of opening an account. Hence it becomes important for the customer to obtain relevant details on this kind of fee, both in terms of amount and the period after which it will be levied.

Check Bank Statements

In case no information has been obtained at the time of opening the account, it is a good practice to check bank statements regularly. You may check your statement for an account from which frequent transactions are made, while completely ignoring the account from which no transactions have been made. Verifying a bank statement for such an account will help you in identifying any inactivity fee that may have been levied.

Change in Bank Policy

In case bank is coming up with such a policy in near future, bank may communicate such a change through a bank statement or through any other medium. So always go through bank mails, letters or statements in detail. Further if any such charge has already been imposed, which you feel should not have been levied, you should contact your bank and discuss the situation with them. If you have a valid case, there is a possibility that charges may be reversed.

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