AU Bank Credit Card Cash Withdrawal

AU Bank credit card allows cardholders to make cash withdrawals from domestic and international ATMs. This gives credit card users an option to access cash in case of emergency. But it comes with various fees and charges, so cardholders should be careful before making cash withdrawals. Au bank only allows users to withdraw a percent of their credit limit, not the whole. The user does not get any interest-free period or the bank charges a higher interest rate than the regular purchases from the date of accrual. Which makes it a very expensive option to access cash. AU Bank charges a cash advance fee of 2.5% with a minimum charge of ₹100. Different AU Bank credit cards have a different cash advance limit which is based on the total credit limit. For example, Altura and Altura Plus Cards allow users to withdraw up to 40% of the credit limit while the Vetta Card only allows up to 30%. Despite its own advantages and disadvantages, credit card cash advances can help people in emergency situations for quick cash without any approval. This can easily be used all over the world.

What is Credit Card Cash Withdrawal

A credit card cash withdrawal, also known as a cash advance, allows cardholders to withdraw cash from the ATM by using their credit card. Cardholders can easily withdraw a percentage of their available credit limit. But you should also remember that it comes with a higher interest rate and it has no interest-free period. The bank starts charging interest from the date of cash withdrawal.

What is Cash Advance Fee

The bank charges a cash advance fee when you make cash withdrawals using a credit card from an ATM or over the counter at a bank. Typically banks charge a percentage of the amount withdrawn, ranging from 3% to 5%, or a flat fee, whichever is higher. For example, if you withdraw ₹5,000 and your card's cash advance fee is 3% then you would be charged a fee of ₹150. Also, remember that cash advances come with higher interest rates in comparison to regular purchases. So only use cash advances in emergency situations when there is no option available.

AU Bank Cash Advance Fee

  • Transaction Fee: AU bank charges this fee on each cash withdrawal which is 2.5% of the withdrawn amount, with a minimum charge of ₹100. This fee will be added in your next billing statement.
  • Interest Charges: Other than transaction fees banks also charge interest on the withdrawn amount from the date of the withdrawal until it's fully repaid. The interest rates vary depending on your credit card type:
    • Altura and Altura Plus Cards: 3.49% per month (41.88% annually)
    • Vetta Card: 2.99% per month (35.88% annually)
    • Zenith Card: 1.99% per month (23.88% annually)

Cash Advance Limits

This limit shows how much you can withdraw as a cash advance. It is different from card to card, some cards allow upto 40%, and some allow upto 20% or less.

depends on your specific credit card:

  • Altura and Altura Plus Cards: Up to 40% of your total credit limit
  • Vetta Card: Up to 30% of your total credit limit
  • Zenith Card: Up to 20% of your total credit limit

Important Considerations

  • No Interest-Free Period:: These cash withdrawals have no interest free period in comparison to other regular purchases. So the abnk will start charging interest from the day of withdrawal.
  • Higher Interest Rates:: Cash advances typically attract higher interest rates in comparison to regular credit card purchases.

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Withdraw cash using your AU Bank credit card

  1. Locate an ATM: Go to any ATM that accepts AU Bank credit cards.
  2. Insert your credit card: Insert your AU Bank credit card into the ATM's card slot
  3. Select your language: Choose the preferred language from the options shown on the screen.
  4. Enter your PIN: Enter your Personal Identification Number (PIN).
  5. Choose 'Cash Withdrawal': Select 'Cash Withdrawal' from the menu.
  6. Enter the withdrawal amount: Enter the amount of cash you want to withdraw
  7. Confirm the transaction: Review the details again and confirm to proceed.
  8. Collect your cash and card: After your transaction is processed, you can collect cash and the transaction receipt.

What are the Advantages and Disadvantages Of AU Credit Card Cash Withdrawal

Cash advance allows the AU Bank credit cardholders to access cash in case of emergency. Even though it gives people quick access to cash but it also has some disadvantages too. You should learn about both to make an informed decision about AU credit card cash withdrawals.

Advantages of Cash Advances:

  1. Immediate Access to Funds: It gives you quick access to cash in case of emergencies.
  2. No Additional Approval Needed: You do not need any other approval to access hard cash. So you can just visit the ATM anytime and withdraw cash just by using your credit card.
  3. International Accessibility: This feature is available worldwide, so it can make your international trips much more convenient when you need local currency.

Disadvantages of Cash Advances:

  1. High Fees and Interest Rates: AU bank charges a high cash advance fee and higher interest rates than regular credit card purchases.
  2. No Interest-Free Period: AU bank offers a interest free period for purchases made through the Credit Card. But cash withdrawals or cash advances get no benefits like this. So the bank starts charging you interest from the day you make transaction.
  3. Impact on Credit Utilization Ratio: it can also increase your credit utilization ratio, which can negatively affect your credit score if not managed carefully.
  4. Lack of Rewards: The bank does not offer any rewards and cashback on cash advances or cash withdrawals.
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FAQs

The cash withdrawal limit, or cash advance limit, is a portion of your total credit limit that you can withdraw as cash. This limit varies depending on your specific credit card type and your credit profile. To find your exact cash withdrawal limit, refer to your credit card's terms and conditions or contact YES Bank customer service.

YES Bank charges a cash advance fee for each withdrawal, typically a percentage of the amount withdrawn, subject to a minimum amount. Additionally, finance charges accrue daily on the withdrawn amount from the transaction date until full repayment. For detailed information on current fees, refer to YES Bank's official documentation or contact customer support

Finance charges on cash withdrawals are calculated daily from the transaction date until the amount is fully repaid. The interest rate may vary based on your specific credit card. For precise rates and calculations, consult your credit card's terms or reach out to YES Bank customer service.

No, cash withdrawals do not have an interest-free period. Finance charges begin accruing immediately from the transaction date until the amount is paid in full.

To minimize finance charges, repay the withdrawn amount as soon as possible. You can make payments through YES Bank's Net Banking, mobile banking, or by visiting a YES Bank branch.

Frequent cash withdrawals can signal financial stress to credit bureaus, potentially lowering your credit score. It's advisable to use this feature sparingly and only in emergencies.

Yes, alternatives include personal loans, which may offer lower interest rates, or borrowing from friends or family. Assess all options and consider the associated costs before deciding.

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