Bank charges hit deposits
Amounts deposited with private commercial banks shrink by 5-8.5 percent within a year, even after interest on the deposit is added, as banks deduct different charges from the amounts, a recent study of Bangladesh Bank reveals.
Analysing customers' complaints lodged with it, the central bank has found that an amount of Tk 10,000 deposited at the beginning of a year decreases by Tk 500-850 at year-end.
After holding a meeting with the high-ups of private commercial banks last month regarding these findings, the BB is going to waive different types of charges imposed on current and savings accounts.
Earlier on two occasions, it reduced the excessive charges the banks used to impose on loan and service accounts.
The central bank study has detected three types of charges introduced by the private commercial banks--incidental charge, minimum balance fee and service charge.
The rates of these charges vary from bank to bank: the charge for a current account is between Tk 200 and Tk 2,000 and that for a savings account between Tk 100 and Tk 1,400.
Labelling the two ceilings as excessive, the BB is going to waive the service charge, incidental charge and minimum balance fee, sources said.
The waiver may come into effect on January 1 next year.
Banks also impose different types of fees on the monthly savings schemes.
If a savings scheme is closed immaturely, Tk 50-300 is charged as pre-mature encashment fee.
Besides, different types of charges are realised in the name of sign-up fee, counter transaction fee etc.
For loan processing, 0.25 to 2 percent charge is levied on the approved loan amount as processing fee while one has to pay 0.50 to 5 percent of a loan as early settlement fee for repaying the loan before schedule.
A customer is charged Tk 50-500 for closing savings and current accounts.
Sources said some of these charges may be withdrawn while others reduced.
Banks, especially the private and foreign commercial ones, used to charge excessively for different services including opening L/C and export-import business.
After holding meetings with the banks the central bank cut some of the charges.
Businessmen, however, still complain that the charges are high.
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