Withdrawing Cash by Credit Card – Top Things to Consider
Are you withdrawing money from your credit card? Without a doubt, this might sound like a good idea, especially when you can’t find help during a financial crisis, but it has its own financial implications as the bank / financial institution takes a series of fees out of the amount you withdraw into. using the credit card.
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Cash advance fees
These are the fees charged each time you withdraw money with your credit card. Banks charge cash advance fees of around 2.5 to 3% of the transaction amount, subject to a minimum amount. The cash advance charge is the billing statement.
Regular credit card transactions incur finance charges, as do cash withdrawals. Fees are debited from the date of the transaction until reimbursement.
Unlike regular transactions, there is no interest-free period for cash withdrawals. It is calculated on a monthly percentage and varies from bank to bank. Usually, banks charge interest at the rate of 2-3%.
Unlike regular transactions, for cash withdrawals there is no interest-free period; fees start to accumulate from the day of the transaction until it is paid in full.
Late payment fees
If you do not repay the full amount by the due date, a late charge is levied on the outstanding balance. Late payment fees vary from 15 to 30% depending on the bank.
Depending on your location, a credit card user is allowed to complete up to 5 free ATM transactions per month. Under RBI guidelines, financial institutions are allowed to charge ATM maintenance or interchange fees beyond these free transactions.
Credit card holders should note that the above fees vary from bank to bank and depending on the type of credit card you are using.