How much charge do you have to pay every year for using ATM card? If you don't know then know this..

An ATM card is important in today's era, but it is equally important to know the charges associated with it and choose the option wisely. If you are unknowingly paying fees every year, then this news is for you. Most of us use ATM cards, but do you know that money is deducted from your account every year for this? Yes, using an ATM card is not free at all. For this, banks charge you every year and also collect GST.

If you withdraw cash from an ATM repeatedly, then you have to pay a separate fee as soon as the limit is exceeded. Let us know how much charge is levied on the ATM card (ATM Card Charges), why it is levied, and how you can avoid it.

How much is levied on an ATM card?

Every bank gives an ATM card to its customers and, in return, charges a fixed fee every year in the name of the Annual Maintenance Charge (AMC). This charge varies according to the category and service of the card.

The AMC of some ATM cards can range from 0 to Rs 2000. Along with this, GST of up to 18% is also charged. Many private banks also provide customized debit cards, which have higher charges. This fee is automatically deducted from your bank account every year, whether you use the card or not.

Why is a charge levied on an ATM card?
When you get an ATM card, you get many services through it, like cash withdrawal, online payment, text message alert, email notification, etc. The bank charges AMC and GST to keep these services active and maintained.

How can you avoid ATM card charges?
If you want AMC is not taken from you every year, then you have this option too. Banks offer some basic debit cards on which no AMC is charged. These cards are only for basic purposes like cash withdrawal. But usually banks do not tell you about these cards. For this, you have to go to the bank yourself and ask whether you want a basic ATM card without annual fees.

What if you have an ATM card but do not use it?

Many people think that if they have taken an ATM card but have not used it, then no charge will be levied. But this is not so. Whether you use the card or not, if you have taken an active card, then AMC and GST will be deducted on it every year. In such a situation, if you do not use the ATM card, then it would be better if you get it closed from the bank or choose a card without charges.