Can I withdraw money from my savings account at an ATM?

Posted on Saturday, March 11th, 2023 | By IndusInd Bank

A savings account is a type of bank account that is designed to help individuals save money while earning interest on their deposits. It is an essential tool for managing personal finances and building wealth over time. One of the primary benefits of a savings account is the potential to earn interest on your deposits.

Interest income on a savings account is important for several reasons.

Firstly, it provides a way for you to earn a return on your savings without taking on significant risk. This can be particularly important if you are saving for short-term goals, such as an emergency fund or a down payment on a home, as you may not want to expose your savings to the volatility of the stock market.

Secondly, interest income can help to offset the effects of inflation, which can erode the purchasing power of money over time. By earning interest on your savings, you can ensure that their money maintains its value and purchasing power.

Finally, interest income on a savings account can help you in building your wealth over time. By reinvesting your interest earnings back into your savings account or other investments such as FD, you can benefit from the compounding effect of earning interest on your interest.

IndusInd Bank offers competitive interest rates on its savings account with which you can grow your savings faster. IndusInd Bank Savings Accounts are a great option for anyone looking to earn attractive interest rates on their savings while enjoying a range of additional benefits and features.

Another benefit of a savings account is that it can help you establish good financial habits, such as regularly setting aside money for emergencies or long-term goals. By automatically depositing a portion of your income into your savings account each month, you can build up your savings over time and be better prepared for unexpected expenses or future investments.

Accessing the money in your savings account

One of the key benefits of a savings account is the accessibility of the funds deposited in it. Unlike other types of investments, such as stocks or real estate, money in a savings account is easily accessible and can be withdrawn at any time. This can be particularly important for those who may need to access their savings in the event of an emergency or unexpected expense. Most financial institutions offer a range of ways to access funds in a savings account, including online and mobile banking, ATM withdrawals, and in-person visits to a branch location. While there may be some restrictions on the number of withdrawals or transactions that can be made per month, these limitations are typically in place to encourage individuals to save their money rather than spend it unnecessarily.

Withdrawing money from savings account via ATM/Debit Card

An ATM (Automated Teller Machine) card, also known as a debit card, is a plastic card issued by a bank or financial institution that allows you to access your bank account at an ATM or make purchases at merchants that accept debit cards. An ATM card typically has a magnetic stripe or chip that stores your account information, including your name, account number, and other identifying details. When you use your ATM card at an ATM, you can withdraw cash, transfer funds between accounts, and perform other banking transactions. The funds are deducted directly from your savings account.

Limits and restrictions on ATM withdrawal from savings account

It is important to note that there may be some restrictions on the number of withdrawals or transactions that can be made from a savings account per month. The limits and restrictions on ATM withdrawals are designed to help protect both the bank and the customer from fraudulent or excessive activity, while still allowing customers to access and manage their funds conveniently.

As per the Reserve Bank of India, banks must offer to its savings bank account holders a minimum number of free transactions at ATMs as under:

Transactions at your bank’s own ATM at any location: You can enjoy a minimum of five free financial transactions in a month at your bank’s own ATM, irrespective of the location of ATMs.

Transactions at any other banks’ ATM at Metro locations: In case of ATMs located in six metro locations (Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi) banks shall offer you a minimum of three free transactions (including financial and non-financial transactions) in a month on your savings account.

Transactions at any other banks’ ATM at non-Metro locations: At any location, other than the six metro locations as above, banks must offer a minimum of five free transactions (including financial and non-financial transactions) at other bank ATMs in a month as per the RBI guidelines.

It is important to note that the RBI has mandated minimum number of free transactions at ATMs. Banks may offer a greater number of free transactions as well. Apart from this, there is a cap on the amount/value of the withdrawal as well. Some banks may charge fees for ATM transactions as well, so it is important to be aware of any potential costs before making a withdrawal.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.