Why do most commercial and digital banks keep deducting money from my account even though I never make withdrawals, transfers, or any other transactions?
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Why do most commercial and digital banks keep deducting money from my account even though I never make withdrawals, transfers, or any other transactions?
Not making withdrawals or transfers doesn't necessarily mean your account will have zero deductions. Banks can charge for certain account maintenance, card, SMS/alert, VAT, stamp duty, or other applicable services, depending on the type of account and the transactions or services attached to it. DigRead more
Not making withdrawals or transfers doesn’t necessarily mean your account will have zero deductions.
Banks can charge for certain account maintenance, card, SMS/alert, VAT, stamp duty, or other applicable services, depending on the type of account and the transactions or services attached to it. Digital banks may also have their own fees.
For example, imagine you have ₦50,000 in your account and you don’t make any transfer or withdrawal for a month. You might still notice a deduction because a fee was applied to your debit card, account service, or another subscribed service.
The important thing is that every deduction should have a clear description.
If I notice ₦500, ₦1,000 or ₦2,000 disappearing from my account, I wouldn’t just assume the bank is stealing my money. I would check the transaction history and ask the bank:
“What exactly is this charge for, and what is the applicable fee or tariff?”
If the charge is incorrect or I don’t recognise it, I would formally dispute it and request a reversal where appropriate.
Also, don’t leave an account open indefinitely if you no longer use it, especially if it has services or cards attached to it. Close or deactivate accounts you don’t need after settling any outstanding obligations.
So the lesson is: No withdrawals or transfers doesn’t always mean no bank charges. Know the fee structure attached to your account and regularly check your statement.
See lessHave you noticed that your money keeps disappearing from your bank account, even though you haven't been using it? Let's dive into why this might be happening.Imagine you have a pot of stew simmering on your stove. Every now and then, even if you're not actively eating, the stew reduces in quantityRead more
Have you noticed that your money keeps disappearing from your bank account, even though you haven’t been using it? Let’s dive into why this might be happening.
Imagine you have a pot of stew simmering on your stove. Every now and then, even if you’re not actively eating, the stew reduces in quantity due to evaporation. Similarly, the money in your bank account might reduce due to various fees and charges that banks apply.
Here is why this might be happening:
1. Account Maintenance Fees: Just like maintaining a car requires occasional maintenance, banks charge fees to keep your account operational. These fees could be deducted monthly or annually.
2. SMS and Email Alert Charges: If your bank sends you SMS alerts on transactions or monthly statements via email, they might debit a small fee for these services.
3. ATM Card Charges: The convenience of using an ATM card comes with a cost. Banks can charge card maintenance fees to keep your card active.
4. Cash Handling Charges: If you frequently deposit or withdraw cash from your account, the bank might deduct a fee for handling these transactions.
5. Dormancy Fees: If there has been no activity in your account for a certain period, the bank could charge a dormancy fee.
6. Transaction Charges: Some banks have limits on the number of free transactions you can make per month. Once you exceed this limit, they start deducting charges for each transaction.
It’s essential to review your bank statements regularly to understand these deductions better. If you notice unfamiliar charges, don’t hesitate to reach out to your bank for clarification.
Remember, just like Mama Ngozi keeps a close eye on her tomato sales to ensure she isn’t losing money, you should also monitor your bank account to stay on top of any unexpected deductions.
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