• Maintain average balance

All banks need you to maintain a minimum average amount over a quarter or even a month (called AQB – average quarterly balance). Since it is an average, sometimes you may not realize that you’ve breached the limit and gone below it.

What you can do: Try to ensure that you keep maximum balance in your account for a few days which usually takes care of the average balance.

• Duplicate statement

If you happen to lose your original account statement, then a duplicate one usually comes at a fee.

What you can do: If you are tech savvy you need could save on a duplicate statement; for most private banks for example HDFC Bank Ltd charges Rs. 100 if you go to the branch for a duplicate statement, but just Rs. 30 if you ask for it through Internet banking or like Citibank India which issues duplicate statement free of cost through online banking, but charges Rs. 100 at the branch.

• Demand draft

It is not possible to completely avoid occasional demand drafts since one may have to attach with forms or applications. Usually the charges are low so it may not matter much but, if you have to make DDs on a regular basis then you may find it expensive. For example if you tend to send money to your relatives regularly, it may matter.

What you can do: Use other methods of transferring like, National Electronic Fund Transfer – it works out cheaper. In fact if the transfer is between accounts of the same bank, it could be free!

Also, DD charges depend on the mode of request. If you order a demand draft through online banking, call centre or ATM, the charges are less compared with a request made in the branches.

• Cheque leaves

Some cheque leaves are issued free of cost on a quarterly, biannual or annual basis, depending on the bank. If you need more than what has been issued to you free of cost, you will have to pay a charge.

What you can do: There are a few banks, including HSBC, Standard Chartered Bank and IDBI Bank Ltd. that do not charge anything for this facility.

• Cheque return

A penalty is charged by all banks for dishonored and bounced cheques. The penalty varies according to the nature of dishonor of the cheque (usually between Rs. 50 and Rs. 750).

If cheque issued by a customer is dishonored because of inadequate bank balance, the penalty is higher. If a third person has issued a cheque in your name but has insufficient funds, you will still have to pay a charge, though a little less.

What you can do: Always ensure that you have sufficient funds in your account to issue a cheque. Cross-check for any mistake you may commit while signing off a cheque.

• ATM PIN regeneration

There is a fee for forgetting your PIN number but some banks do it for nothing. The maximum charge is Rs. 50.

What you can do: While it is best to change your PIN to a number you can easily remember, even here the use of technology may save a few bucks for you. For requests on ATMs or online, some banks charge less.

• Stop payment

Every time you make a stop payment request, a small amount gets deducted from your bank balance.

What you can do: Be sure when you want to issue a cheque.

However, the more the number of such requests, the higher will be the charges in most cases. For instance, State Bank of India charges Rs. 50 for the first three stop payment requests each. Make more than three such requests and the charge will go up to Rs. 200 per mistake. Some banks, such as Citibank, do not charge for online requests, but charge Rs. 100 for a branch visit.

• Outstation cheque collection

All banks have a charge (Rs. 50-200) for outstation cheque collection for sending the cheque to the branch from where it has been issued.

Though with the introduction of core banking solution (CBS) this particular charge has become irrelevant to an extent, it still exists for branches (located in remote area) where the system hasn’t been introduced.

• Account closure

If you have too many accounts due to frequent job changes and want to close some of them to cut the clutter, you will have to pay a charge to close each account. Banks generally levy a closure charge if the account is closed within six months to a year of opening.