6 Reasons ATM Withdrawal on SBI Student Plus Advantage Card is Costly

ATM withdrawals on the SBI Student Plus Advantage Credit Card are not recommended for several reasons. Using your credit card for cash withdrawals can come with significant drawbacks and costs.

Reasons why ATM withdrawals on SBI Student Plus Advantage credit card should be avoided:

(1) High Fees: ATM withdrawals on SBI Student Plus Advantage Credit Card incurs steep fees, such as a flat fee per transaction or a percentage of the amount withdrawn. These fees make ATM cash advances more expensive compared to other methods of accessing cash, such as using a debit card. In situations where there is a genuine financial emergency and you have exhausted all other options for accessing cash, it may be worth considering a credit card cash advance. True emergencies can include unforeseen medical expenses, urgent travel requirements, or circumstances where immediate funds are necessary for essential needs.

(2) Immediate Interest Charges: If you make a regular credit card purchase on SBI Student Plus Advantage Credit Card that may have a grace period before interest accrues. But ATM cash advances start accruing interest immediately from the moment you make the withdrawal. This can result in higher interest charges over a short period.

(3) Higher Interest Rates: Cash advances on SBI Student Plus Advantage credit card carries a higher interest rate compared to regular purchases. This means that borrowing cash through an ATM withdrawal can be significantly more expensive than other financing options.

(4) No Grace Period: When you make regular credit card purchases and pay off your entire balance before the grace period ends, you can avoid paying any interest on the borrowed amount. However, with ATM credit card cash withdrawals, interest begins accruing immediately upon making the withdrawal. This means that there is no grace period for cash advances, and you will start incurring interest charges from the moment you withdraw the cash.

(5) Negative Impact on Credit Score: Frequent ATM cash advances can have a negative impact on your credit score. The high utilization of your credit limit and the potential for increased debt can lower your credit score, affecting your creditworthiness in the eyes of lenders.

(6) Payment Priority: When making payments on SBI Student Plus Advantage credit card, the money is typically applied to balances with the lowest interest rates first. If you have both ATM cash advance debt and regular purchase debt, your payments may go towards the regular purchases first, leaving the higher-interest cash advance balance to continue accruing interest.

In conclusion, it is not recommended to make ATM withdrawals on the SBI Student Plus Advantage Credit Card or any credit card. The high fees, immediate interest charges, potential negative impact on your credit score, and availability of alternative methods of accessing cash make ATM cash advances a less favorable option. It is important to prioritize responsible financial management, explore cost-effective alternatives, and have emergency funds in place to avoid unnecessary fees and interest charges while maintaining your financial well-being.


Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].

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