Federal Bank Hikes Service Charges From June 1: Full List of ATM, Cash Deposit & Locker Fee Changes

Starting June 1, 2025, Federal Bank will implement revised service charges affecting various banking transactions, including ATM withdrawals, cash deposits, and locker rentals, among others. This adjustment in fees comes as a significant update that customers should be aware of to manage their banking activities efficiently.

For those holding savings accounts, the bank is introducing a new structure for cash handling charges. Up to five cash transactions or a cumulative amount of Rs 5 lakh can be processed without any charges within a month. Once this limit is exceeded, customers will be charged Rs 4 for every Rs 1,000 or part thereof, with a minimum fee of Rs 100 per transaction. This change is also set to take effect from June 1, 2025.

Adjustments in ATM and Other Transaction Charges

Current and savings account holders will face fees for using their debit cards at ATMs of other banks beyond the free transaction limit. Specifically, each financial transaction, like cash withdrawals, will cost Rs 23, and non-financial transactions, such as balance inquiries or obtaining a mini-statement, will incur a fee of Rs 12. However, transactions at Federal Bank ATMs remain free of charge. Additionally, if a transaction at another bank's ATM, ECOM, or POS is declined due to insufficient funds, a charge of Rs 25 will be levied.

Changes in Account Maintenance and Locker Rent Fees

Savings account users must maintain a certain Average Monthly Balance (AMB), and failing to do so will attract non-maintenance charges. These fees depend on the shortfall amount and the type of savings scheme. General customers must maintain an AMB of Rs 5,000 or above for specific schemes, with charges ranging from Rs 75 for a shortfall up to 20% to Rs 375 for a 100% shortfall.

Senior citizens benefit from slightly reduced charges, paying between Rs 60 to Rs 300 based on the shortfall percentage. Those holding accounts in rural branches, regardless of the scheme, will also face lower charges, with general customers paying between Rs 60 and Rs 300 and senior citizens between Rs 50 and Rs 250, depending on the shortfall.

Regarding locker rents, Federal Bank charges differ based on the branch's location and the locker's size. At rural and semi-urban branches, annual rents range from Rs 2,000 for small lockers to Rs 5,500 for large lockers, alongside a refundable key deposit. In metro and urban branches, the rent varies more widely, with small lockers costing between Rs 2,950 and Rs 5,000 annually and large lockers between Rs 7,400 and Rs 12,800, each requiring a respective key deposit.

Account Closure Fees

Closing a savings account within six months of its opening incurs a fee of Rs 100. If the account is closed after six months but before 12 months, the charges are Rs 100 for rural or senior citizen accounts and Rs 300 for other savings accounts. No fees are charged if a savings or current account is closed within 14 days from the first deposit.

For returned inward cheques, the bank has set different charges based on the account type and customer category. Rural customers and senior citizens face a fee of Rs 400 per return, while other savings account holders are charged Rs 500 per instance.

These comprehensive revisions by Federal Bank, effective from June 1, 2025, highlight the importance for customers to stay informed about the changes to manage their finances better and avoid unexpected fees.