Credit card cash advance fee: Beware! Think twice before credit card cash withdrawal; here's why

Credit Card Cash Withdrawal charge: Looking for quick cash? You might be tempted to use your credit card at a nearby bank ATM. Doing this can be okay when you are in an emergency kind of situation. Not always. And there are many reasons for this. First, using the cash advance feature, which provides a customer instant liquid cash, comes at a price - the charges levied by banks on each withdrawal. This may range from 2.5% to 3% (minimum Rs 500-Rs 700). Second, you will also have to pay an interest on the amount withdrawn using credit cards. The interest rates on the cash advance facility vary from one card to another but are usually high. 

Third, there is no interest-free period for credit card cash withdrawal. So, you will have to pay an interest on the amount from the very first day of the withdrawal. Fourth, if you end up depositing the due late, the bank will levy late payment charges on the outstanding balance. 

Here we take a look at the cash advance fees charged by banks: 

State Bank of India's SBI Card:

A transaction fee is levied on SBI card cash withdrawals and be billed to the cardholder in the next statement. A transaction fee of 2.5% or Rs. 300, whichever is higher at domestic ATMs, and 3% or Rs. 300, whichever is higher at international ATMs is levied. All cash advances also carry a finance charge equal to charges on revolving credit from the date of withdrawal until the date of full payment.

HDFC Bank Credit Card

A transaction fee of 2.5% (Minimum Rs 500) (excluding Infinia Credit card) is levied on the amount withdrawn and billed to the Cardmember in the next statement. All cash advances also carry a finance charge equal to charges on revolving credit from the date of withdrawal until the date of full payment. 

ICICI Bank Credit Card

A transaction fee of 2.5% (Minimum Rs 250 for eBOR and ICICI Bank ATMs, Rs 350 for other ATMs) is levied on the amount withdrawn and would be billed to the Card member in the next statement. All cash advances also carry a finance charge of 2.95% per month (APR 41.75% per annum) from the date of withdrawal until the date of full payment.

RBL Bank Credit Card

The bank charges a flat fee of 2.5% of the cash amount (Minimum Rs 100) 

Axis Bank Credit Card

The bank charges 2.5 per cent (Minimum Rs 250) of the cash amount. 

Kotak Mahindra Bank Credit Card

At present, Kotak Mahindra Bank charges a flat Rs 300 as cash advance fee for every Rs 10,000 withdrawn through most of its cards. 

Citi Bank Credit Card

The bank charges 2.5% on the billed amount withdrawn, subject to a minimum of Rs 500.