1. A bank account can be free to open and still cost money
A savings account may not have an obvious monthly subscription, but that does not mean every service attached to it is free.
Depending on the bank and account variant, charges can apply to things such as non-maintenance of required balances, debit cards, ATM usage beyond applicable free limits, cheque-related services, cash handling, replacements and other service requests.
The authoritative document is the bank's schedule of charges, not an advertisement that describes the account as “free.”
2. Minimum-balance charges cannot be a hidden surprise
Some regular savings accounts require a minimum or average balance. If your account has such a condition, the bank should disclose the requirement and the consequences of not maintaining it.
RBI's customer-service framework requires transparency around minimum-balance charges. Among other safeguards, customers must be notified of a shortfall before applicable penal charges are recovered, and the charges should be proportionate to the shortfall.
A Basic Savings Bank Deposit Account is different: it provides prescribed basic facilities without a minimum-balance requirement.
3. Small service charges can become meaningful over a year
A ₹200 or ₹300 fee may look small in isolation. Several such charges across debit cards, ATM usage, account services or cash transactions can change the true annual cost of an account.
ATM rules also distinguish between transactions at your own bank's ATM and another bank's ATM, and RBI prescribes minimum free-transaction entitlements for ordinary savings accounts. Banks can offer more than those minimums.
The exact charge can change over time, so learning the type of fee is more useful than memorising one rupee amount forever.
Replacement, special requests, extra cheque services or similar events.
Annual card charges, balance-related fees or transactions beyond included limits.
4. Check the account the way you would check a subscription
Before opening or continuing with an account, look at the minimum-balance rule, debit-card fee, ATM policy, cash-transaction limits and charges for services you actually use.
Then check your statements periodically. If you find a charge you do not understand, identify its description and compare it with the bank's published schedule before assuming it is valid or invalid.
A higher savings interest rate can be less valuable if your normal usage repeatedly triggers fees. The useful number is your total cost for the way you bank.
5. Quick check
Bank A advertises a slightly higher savings interest rate, but your account usage would trigger several annual and transaction charges. Bank B pays slightly less interest but avoids most of those charges for your usage. What should you compare?