6 ways to avoid high ATM charges

Here's how you can avoid the charges that are likely to kick in from 1 November 2014.

1. Your first weapon against ATM charges is the plastic in your wallet. Use your debit and credit cards so that you don't need too much cash. Be alert when you do this. Some establishments charge 1-2% of the amount as transaction fee, which will defeat the purpose of using the cards. There is also the danger of overspending if you use plastic money for every purchase.
2. Don't wait till you are broke to withdraw money from the ATM. Give yourself a buffer of 2-3 days by indulging in advance planning. In this manner, you won't be forced to use another bank's ATM. While withdrawing cash, take out more than the amount you need immediately. Take into account the expenses during the coming 8-10 days and withdraw accordingly.
3. If your bank's ATM is in the vicinity, avoid using another bank's machine. Even if you have to walk 50-100 feet, your first choice should be your own bank's ATM. Only if there is no ATM close to you should you use another bank's ATM. Some banks have apps that can help you locate their nearest ATM on the smartphone. Make a list of your bank's ATMs in the areas you frequently visit.
4. Keep some cash at home in case you run out of money due to unforeseen expenses. However, don't keep too large an amount in cash. In your effort to save Rs 20 in ATM fees, you could be losing out more in interest on that amount. Besides, keeping cash at home is risky.
5. The silver lining is that the ATM charges will help revive yThe cap on ATM usage includes non-financial transactions, such as balance enquiry or a mini statement request. Instead of using the ATM for this, take the SMS route. Most banks offer SMS facility for checking account balance, mini statements with last five to 10 transactions, and the status of cheques issued by you.
6. Our dormant bank account. Most banks charge a small annual fee of Rs 80-100 for a no-frill debit card. One debit card will allow you 36 transactions on other banks' ATMs and 60 at your own bank in one year. That is much cheaper than the charge imposed by your current bank if you exceed the cap on transactions.