Saving Account 2021-09-01

Savings Account Withdrawal Limit – Important Points You Need to Know

Every bank imposes a withdrawal limit on a savings account, which dictates how much money you can withdraw and how often, within a specified period

By Digital Marketing Consultant, Blogger, and Founder of Tech Preview
Savings Account Withdrawal Limit – Important Points You Need to Know

Savings account is a safe and convenient instrument to let you keep aside your surplus money and earn steady interest on the balance. At the same time, it also allows you to withdraw funds as and when needed. That's how a savings account works in a nutshell. However, every bank imposes a withdrawal limit on a savings account, which dictates how much money you can withdraw and how often, within a specified period.

But if the money kept in the account is yours, why do banks even impose a withdrawal limit? Shouldn't you have access to the deposits whenever you'd like? Well, there's a reason why it is called a "savings" account, and that reason is linked directly to the purpose of the account. Banks do this for primarily two reasons:

  • To encourage the habit of saving
  • To protect you against fraudulent money laundering practices

All You Need to Know About Savings Account Withdrawal Limit

As a savings account holder, you are only permitted to carry out a specific number of monthly transactions for free. But what happens when you exceed the permissible threshold? Well, in such cases, your bank may:

  1. i) Charge you a penalty fee along with the applicable GST charges for transgressing the threshold
  2. ii) Decline any excess transactions

In India, savings account holders are allowed to withdraw money from their account only three times a month, after which the transactions are chargeable. However, not all money transfers or withdrawals are counted towards the set account limit.

Any transaction done via mobile or internet banking is excluded and can be done for free. Also, there is no cap on the number of transactions you can make.

Important Points to Remember

  • Having a passbook is mandatory in most cases, especially if you're making a transaction using the bank's withdrawal form. You're also mandated to be physically present at the branch during the withdrawal process.
  • Apart from the account holder, no other person is allowed to withdraw money from a savings account. If you do need someone else to make a transaction on your behalf, you will need to give your written consent to authorise them. This is only possible if you are either:
  • A senior citizen
  • Disabled
  • Sick
  • Whenever you update your passbook, it's prudent to keep track of your last few transactions. As a precautionary measure, this can help you track any unauthorised transactions made through your account and raise a concern with your branch manager immediately in case there's any.
  • Withdrawing cash using ATMs operated by third parties and other banks usually incurs a fee.
  • Some banks may have daily withdrawal limits on transactions made via ATMs. It's best to inform yourself of the prescribed thresholds before you go overboard.

Parting Thoughts

If you have just begun your finance journey, knowing the withdrawal limits in-depth along with other rules will save you from ending up in a pickle later. Stay updated about all the latest withdrawal/deposit limits set by your bank and ensure your banking experience is a seamless one.

Comment
image
image
mobile
address
star franchise india
Related opportunities
  •   a)      Unified Web Options and Services Private Limited  (UWO..
    Locations looking for expansion Madhya pradesh
    Establishment year 2020
    Franchising Launch Date 2021
    Investment size Rs. 50000 - 2lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater jabalpur Madhya pradesh
  • Grocery Stores
    Veg Mart is truly an one stop shop for all..
    Locations looking for expansion Haryana
    Establishment year 2018
    Franchising Launch Date 2020
    Investment size Rs. 5lac - 10lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
  • The Cut and Style is one of the finest and..
    Locations looking for expansion Haryana
    Establishment year 2000
    Franchising Launch Date 2007
    Investment size Rs. 30lac - 50lac
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Gurgaon Haryana
  • Laundry & Dry Cleaning
    About Us: LaundryAnna is one of the best laundry services in..
    Locations looking for expansion Karnataka
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads