Bank vs Post Office ATM: Which One is Cheaper? Check Latest Charges and Free Transaction Limits

The Post Office has recently updated the transaction charges on its ATM cards, impacting those who frequently withdraw cash. Similarly, banks also impose fees once users exceed their monthly free transaction limit. If you often withdraw cash from ATMs, it’s important to know — which ATM is cheaper: a bank’s or the post office’s? Let’s find out.

🏦 Bank ATM Charges and Limits

According to RBI guidelines, every savings account holder gets a limited number of free ATM transactions each month. These limits differ for metro and non-metro cities.

• Own Bank ATM: 5 free transactions (withdrawals + balance checks) per month.

• Other Bank ATM: 3 free in metro cities, 5 in non-metro cities.

Once the limit is crossed, extra charges apply:

• SBI: ₹15 + GST (own bank ATM), ₹21 + GST (other bank ATM)

• HDFC Bank: ₹23 + GST (after limit)

That means, the more you use ATMs beyond the limit, the more you pay from your pocket per transaction.

📮 Post Office ATM Charges and Free Limit

The Post Office Savings Account (POSA) and India Post Payments Bank (IPPB) customers also get limited free transactions. But here, the cost beyond the free limit is significantly lower.

• Free Transactions: 5 financial + 5 non-financial per month

• After Limit:

  • ₹10 + GST for cash withdrawals

  • ₹5 + GST for non-financial transactions (like balance inquiry)

👉 The Post Office ATM is much cheaper compared to bank ATMs, where extra charges go up to ₹23.

However, if you use your Post Office ATM card at another bank’s ATM, you’ll have to pay standard interbank charges (similar to regular banks).

💳 Additional Post Office Charges

• Annual Maintenance Fee: ₹125 + GST

• Replacement Card or PIN Reissue: Extra charges apply

So, while the transaction fee is lower, there are still some maintenance costs to consider.

📊 ATM Network Availability

The biggest difference lies in ATM availability.

• Bank ATMs: Over 2.57 lakh ATMs across India, connected via the National Financial Switch (NFS).

• Post Office ATMs: Only 976 ATMs currently operational. However, IPPB plans to expand this to 2,000 ATMs by 2026.

This means banks clearly have a much wider and easily accessible network.

✅ Verdict: Which One is Better?

• Cost-wise: Post Office ATMs are cheaper (₹10 + GST vs ₹21–₹23 + GST).

• Convenience-wise: Bank ATMs are far more accessible and reliable.

💡 Conclusion:
If you live in an area where a Post Office ATM is available, using it can help you save extra charges. But if you travel often or need frequent cash access, Bank ATMs offer greater convenience and reach.