The benefits of zero-fee banking in millennial budget planning

By Team Newsable | First Published Aug 18, 2023, 3:08 PM IST

Zero-fee banking and modern-day banking features such as competitive savings account interest rates, internet, mobile, and WhatsApp banking, as well as other similar facilities, can revolutionise how you manage your money.

As a millennial, your #1 priority is to create an excellent financial backing to support your dreams of either buying a house, or a comfortable car, and to take care of your monthly expenditure. And to create a better corpus for tomorrow, it is essential to utilise banking services prudently.

Often, banking charges attached with different banking services add to your cost. As the analogy goes, ‘Little drops of water make a mighty ocean’; similarly, these insignificant small expenses turn out to be an eyesore later. That’s where zero-fee banking can help you eliminate such expenses on regular banking services, facilitating better budget planning.

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This article will help you understand the benefits of zero-fee banking in relation to budget planning and introduce a new era of financial freedom.

First step - what is zero-fee banking?

Think of a world where banking fees are obsolete, and every bit of your hard-earned money is yours to keep. Zero-fee banking enables this by offering you access to diverse banking services that don’t cost you anything. Services like ATM withdrawals, fund transfers, SMS alerts, chequebook issuance, cash deposit and withdrawal, IMPS, NEFT, RTGS, and more are free of any fees.

Zero-fee banking does not levy any fees for routine banking services and aims to eliminate unnecessary charges to provide customers with a cost-effective banking experience. It aids in budget planning, improves transparency, and promotes financial inclusion.

How can you access zero-fee banking facilities in India?

You can access zero-fee banking facilities in India by opening a savings account in a bank that offers this service. IDFC FIRST Bank offers 28 commonly used savings account facilities, such as issuing debit cards (in the first year), balance certificates, duplicate passbooks, interest certificates, closing of account, address confirmation, photo attestation, etc. at no cost. The bank also offers free ATM transactions, IMPS, NEFT, RTGS transfers, and more under the same service.

How can zero-fee banking help you?

Zero-fee banking can help you with your budget planning and offer you enhanced saving account features at no extra cost. Unlock your savings account's full potential without worrying about any additional financial burdens.

Here are some key benefits of zero-fee banking -

You save more money

One of the primary advantages of zero-fee banking is that you save money and streamline your budget planning.

Banking services, even the standard ones like cash transfers, chequebook issuance, etc. can cost a lot over time. While you may not always notice these fees, they can put you behind your goals considerably, depending on the services you avail of, and the bank charges levied
In India, banks can charge a maximum fee of Rs 21 per ATM transaction. In most cases, banks offer some free transactions in a month. However, there may be a situation where you need to withdraw funds multiple times from an ATM. In this case, you could be charged on each transaction
Zero-fee banking eliminates these unnecessary costs and ensures you can use the needed services without burning a hole in your pocket
You can retain more of your hard-earned money and these savings accumulate over time, so you can allocate these funds towards your financial goals, investments, and other essential expenses

You enjoy greater flexibility

Using all savings account features without the burden of fees lets you easily manage your bank account and conduct different types of transactions with no stress.

You have greater flexibility regarding how often you carry out a transaction or the various services you use
You need not be concerned about fees eating into your bank balance; you can align your banking activities with financial goals and preferences without limitations
Consider a scenario where you work in a different city and frequently send money to your family. With some banks, you would incur fees for every transfer. This would limit the number of times you can support your loved ones financially
By shifting to a zero-fee banking account, you can make multiple transfers without worrying about the cost and provide better financial assistance to your family whenever required

It makes banking a lot simpler and more inclusive

Zero-fee banking simplifies banking to quite an extent, here’s how -

You can easily understand the costs associated with your banking activities
You don’t need complex calculators to compute the fees associated with basic transactions
There are no hidden charges, and you are offered more transparency
You are better equipped to make informed financial judgments and do not have to base your decisions solely on the costs involved
Zero-fee banking helps people from varying income groups access formal banking services
It bridges gaps and helps people across the country take advantage of seamless banking services that simplify their lives. For example, it can empower low and medium-income groups to use banking services, and foster economic growth

In conclusion

It is important to check for zero-fee banking when looking for the best bank to open a savings account. A bank that levies no additional charges can offer you greater financial freedom, helping you in budget planning, gain access to more banking features, and get #MoreFromYourBank.

You can open a savings account with IDFC FIRST Bank and experience zero-fee banking facilities today. In addition to helping you save more with zero-fee banking, the savings account with IDFC FIRST Bank offers up to 7% interest p.a. In addition, there’s also monthly interest credits leveraging the power of compounding and building wealth in the long run. Now isn't that a great way to get your budget planning done, right?

Get your IDFC FIRST Bank savings account today to enjoy zero-fee banking on services*.

Disclaimer: *IDFC FIRST Bank offers Zero Fee Banking on Rs 10,000 Average Monthly Balance (AMB) Savings Account and higher account variants, subject to maintenance of AMB in the account.

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