What is The ANN Fee in Union Bank Of India?

In banking, an annuity (ann) charge is often connected with the bank’s annual products. An annuity is a financial product that offers a series of payments made at regular intervals. Banks and financial institutions provide annuities as a way for people to invest money, typically for retirement, and receive regular payments in the future.

As you have a debit card from Union Bank, you need to pay an annual amount to the bank. This amount can be different based on the type of card. In this article, you’ll know different types of ANN fee in Union Bank and other related details about this charge.

Why do You Need to Pay the ANN Fee?

In banking, an annuity (ann) charge is usually linked with the bank’s annual services. An annuity is a financial product that provides a series of payments at regular intervals. Banks and financial institutions offer annuities as a means for consumers to save money for retirement and receive monthly payments in the future. Here are some of the key reasons listed for you:

  • Managing annuities includes duties like record-keeping, client support, and transaction processing. Administrative fees contribute to these operational expenses.
  • Annuities include insurance guarantees like death benefits or guaranteed income streams. Mortality and cost risk fees cover the insurance risks paid by the company.
  • The underlying funds in variable annuities need to be managed appropriately. Investment management fees cover the costs of fund managers who invest and manage the assets in the annuity.
  • Sales representatives get commissions or sales fees from brokers or financial planners. These payments reward their work and knowledge in providing clients with recommendations for appropriate products.
  • Enhanced death benefits, long-term care alternatives, and guaranteed lifelong income are just a few of the extra features many annuities provide. These extra perks are paid for with rider fees.
  • These are intended to deter early withdrawals of funds, which could jeopardise the insurer’s financial assumptions and investment strategy.

ANN Fee in Union Bank Of India

What is the ANN fee in Union Bank of India?

Now that you have a concept about the ANN fee, note the ANN fees at UBIN. If you receive a message like 236 rupees has been debited from your bank account, even if you didn’t spend anything, understand it is an ANN fee. For classic Rupay and Visa card holders that is the ANN fee of Union Bank. If it’s a platinum card, then the charge becomes 354 rupees. Similarly, for Rupay Select and Visa Signature cards, the charge is 472 rupees.

Type of Debit Card ANN Fee
Classic Rs. 236
Platinum Rs. 354
Signature Rs. 472
Business  Rs. 472
RuPay Select  Rs. 472
RuPay JCB Platinum  Rs. 472

Is it Mandatory to Pay the ANN fee?

Paying the ANN fee every year is a default process for all banks. For the first year, there won’t be any charge for ATMs. From the second year, it will be applicable. If there’s less than the required ANN amount in your account or you’re not maintaining the minimum balance for your account, a lien will be applied.

Unless the lien is not cancelled, you cannot use your balance. As soon as the balance gets credited into the account, the ANN charge will be deducted followed by lien removal.

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