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
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:
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:
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
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.