5 Hidden charges you should know! | Money Psychology

Summary

In this engaging script, a conversation unfolds about financial savings and awareness. The dialogue begins with the discovery of a credit card offering with no annual fees and cash back, prompting a discussion on ensuring such offers are documented to avoid hidden charges. It progresses to advice on dealing with banks regarding inoperative accounts and unnecessary fees, highlighting the importance of knowledge about RBI's rules. The script also touches on GST implications for businesses under the composite scheme and concludes with practical tips on reducing loan tenures to save on interest and using premium accounts for waived delivery fees, alluding to the theme of being vigilant in personal finance.

Takeaways

• 💳 A new credit card with zero annual charges is being promoted, offering cash back, discounts, and various offers.
• 📞 The importance of getting promises in writing is emphasized to avoid hidden fees or disputes with financial institutions.
• 📧 If unexpected charges appear on a credit card, customers should refer to written agreements and request a reversal of charges from the bank.
• 👮‍♂️ In case of unresolved disputes with banks, customers can file a complaint with the Reserve Bank of India's 'ombudsman' portal within 31 days.
• 🏦 Banks cannot charge fees for an inoperative account that has had no debit or credit activity for two years, according to RBI regulations.
• 📈 The script highlights the impact of the RBI's repo rate increase on loan tenures and the strategy to keep EMIs the same while extending the loan period.
• 📊 To minimize interest paid on loans, it's advisable to increase EMIs rather than extending the loan tenure when interest rates rise.
• 🍦 An ice cream order scenario demonstrates how to save money by opting out of delivery fees, especially when using a premium account.
• 🛒 The script points out 'dark UX patterns' where delivery fees are not automatically waived, even with a premium account, and must be manually selected to save money.
• 💡 The character in the script is proactive in seeking and implementing various strategies to save money, from financial products to everyday purchases.
• 🔍 The importance of checking whether a business is registered under the composite GST scheme to avoid paying unnecessary GST is highlighted.

Q & A

What is the main offer discussed in the script related to the new credit card?

The main offer discussed is a new credit card with zero annual charges, cash back, discounts, and various offers.

What is the concern raised by the character regarding the credit card offer?

The concern is about the possibility of hidden charges despite the promise of zero fees, and the importance of getting the offer in writing as proof.

What advice is given if the bank charges fees contrary to the 'zero fees' promise?

The advice given is to request the bank to reverse the charges, citing the written promise, and if they do not comply, to file a complaint with the Reserve Bank of India through their 'ombudsman' portal.

What is the term used for an account that has had no debit or credit activity for two years?

The term used is 'inoperative account'.

According to the script, can a bank charge fees for an inoperative account?

No, banks cannot charge fees for an inoperative account as per the rules mentioned in the script.

What is the significance of the RBI's repo rate increase mentioned in the script?

The increase in the repo rate could lead to an increase in the interest on existing loans, potentially affecting the loan tenure and the total amount of interest paid.

What is the strategy suggested to handle an increase in the repo rate by the bank?

The strategy suggested is to ask the bank not to increase the loan tenure but to increase the EMI amount to keep the tenure the same and save on the total interest paid.

What is the 'composite scheme' in the context of GST mentioned in the script?

The composite scheme is a GST arrangement for businesses with a certain turnover threshold, allowing them to pay a flat fee based on turnover instead of calculating taxes on each transaction.

Why should a business registered under the composite scheme not charge customers GST?

A business under the composite scheme should not charge customers GST because they pay a flat fee based on turnover and are not required to calculate and collect GST from customers.

How can one verify if a business is registered under the composite GST scheme?

One can verify by searching the business's GSTIN or legal name on the official GST portal and checking if it is listed as a composition taxpayer.

What is the final tip given in the script for saving money on an ice cream order?

The final tip is to ensure that the premium account checkbox is selected during the order process to avoid delivery fees and save money.