How to choose your bank account

How to choose your bank account

Most people view savings accounts facilities as a commoditised service assuming that barring behaviour of the staff nothing is different.

But in not choosing an account carefully many customer end up opening multiple accounts as their original bank does not fulfil all their needs.

By identifying their banking needs and accordingly selecting a bank, account holders will be rewarded with considerable savings in terms of time as well as money. It would obviate the need for multiple accounts to hedge the risks.

Identify the right bank
The first step towards selecting the ideal bank account is evaluating the profile of various banks. The bank's target group should also be considered while making a decision, that is, you need to know whether the bank's focus is on the mass, mass-affluent or high-end customers.

For instance, if the target group of a bank is high-end customers and you fall in the middle-income group, you may not be treated as a valued customer, resulting in dis satisfactory level of service.

For instance, large-sized private banks may not attach enough importance to small-time traders' needs as they are not priority customers for such banks and even routine services like signature verification could turn out to be time-consuming affairs. Such customers would be better off banking with co-operative banks that specialize in servicing such customer segments.

Analyse channels offered
Once you are convinced that you would be comfortable with the bank's profile, you can look at the convenience aspect. Branch and ATM network constitute the key factors impacting this decision. If the bank under your consideration does not have a branch located close to your place, find out if they at least have an ATM near your house to make up for it.

However, ATMS may become less of a deciding factor after April 1, since customers will then have the freedom to access third-party ATMs without charge. If you intend to avail of locker facilities, proximity of the branch will be crucial. Another channel which could be of great interest to many, especially senior citizens, is the home banking facility.

You need to enquire whether the bank undertakes to deliver cash, cheque books and documents at your doorstep. This apart, before signing up for a savings account, ascertain whether services such as bill payment, transfer of funds and placing orders for cheque books are offered through all channels.

Evaluate technology-friendliness
If service is the differentiator then technology is the enabler. The affluent class, in particular, is constantly on the move. Thus, a savings account should allow customers to access their banking needs whenever and wherever they need the same. While most banks claim to offer all platforms, it does not necessarily mean that they provide all the services as well.Not all banks offer all the services on Internet, phone and mobile platforms.

If you are an Internet-savvy person, but net banking is not your bank's strength, it could cause a lot of inconvenience. To cite an example, if your bank does not facilitate regeneration of net banking password on the Internet, you will end up spending time and money to visit the branch for submitting the application. Same is the case with mobile banking.

If you happen to be a frequent traveller who completely relies on his/her cell phone for most transactions, you will not be comfortable with a bank that does not have a fully-enabled mobile platform. Many a time, some banks publicise their mobile services, which in reality are confined to merely answering queries over the SMS.

Scrutinise product features
A comparison between the account features offered by various banks is essential. Typically, most foreign and private banks do not offer accounts with a minimum balance requirement of less than Rs 5,000-10,000, whereas public sector banks continue to offer products starting with Rs 500 too. You also need to enquire whether your account follows the minimum daily balance or the average quarterly balance system.

In case of the former, the bank could slap a non-maintenance charge if you fail to maintain the relevant balance even for a day. On the other hand, an account with average quarterly balance would mean you can avoid the charges by ensuring adequate balance on most days.

If you need to transfer money on a regular basis to a family member not based in your city, a no-frills account won't be of help as it may not issue 'At Par' cheques, thus leaving the recipient hassled. In addition, find out if the account comes with the sweep-in-sweep-out facility as it can help you avoid the notional loss incurred in letting cash idle away in the account. The facility ensures that any cash over and above the minimum balance limit is 'swept away' into a fixed deposit, thus earning a decent rate of interest and is made available to you, ie is swept back into your account, on demand.

Be aware of the charges
Upon opening an account, most banks supply an account opening kit containing a schedule of charges detailing the non-maintenance charges, cheque return penalty, debit card charges etc.

Many account holders are unaware of the fee levied on debit cards after the first year of acquiring the same.

Some banks also charge customers for SMS alerts. While comparing the charges of various banks, you need to determine whether they are inclusive or exclusive of service tax.

A thorough scrutiny of the schedule of charges will ensure that you are not taken by surprise later.

Source: EconomicTimes

very useful article ... :clap:

thanks rameshjee

Well, Generally one should have an account in one of the nationalized bank.

I would recommend SBI. becuase it has very huge coverage in terms of branched and ATM.

Originally Posted by Gary4gar

Well, Generally one should have an account in one of the nationalized bank.

Not necessarily.
But please make sure that your chosen bank accepts cheques over the counter with a valid receipt stamp. As per RBI guidelines no bank can refuse to do so. But in practice I found only Axis Bank and PNB are doing it. All other banks ask u to put it in the drop box.

If you look around closely, you would find a Stamp lying around. you stamp the receipt yourself and it would accepted as valid proof

^^^
believe me it would not be, unless signed on the stamped counterfoil with date by a Bank official.

here is the problem
I am trying to open a No Frill account with Kotak but the branch people are very annoying me. By saying that this account is for Drivers, Maids and etc stuff.
I can't bear a 10k saving account and that is why i need this No frill account...
What should be done if bank refuses to open No frill account...
I am unemployed but i need to have a account to simplify my usage and bill payments. Can any body help me to get me on the bank....
This is the only bank which i am looking for Kotak nothing else can u tell me if i can take any legal action against them if yes than how to proceed

you can write to the Banking Ombudsman of your city.

I would suggest you make a visit to Axis Bank for the same purpose unless you believe that Kotak is the only bank worth your effort.

Bank Ombudsman are the best guys around India.. write them if no one ever helps you..

just quote them the details. and these stunners of law and game players will be bashed..

Here more on THE BANKING OMBUDSMAN SCHEME 2006

Originally Posted by altainta

here is the problem
I am trying to open a No Frill account with Kotak but the branch people are very annoying me. By saying that this account is for Drivers, Maids and etc stuff.
I can't bear a 10k saving account and that is why i need this No frill account...
What should be done if bank refuses to open No frill account...
I am unemployed but i need to have a account to simplify my usage and bill payments. Can any body help me to get me on the bank....
This is the only bank which i am looking for Kotak nothing else can u tell me if i can take any legal action against them if yes than how to proceed

I was having the same problem.

I opened an account in Indian Overseas Bank. It is having net Banking facility, Mobile banking etc. On each transaction you swipe the card, you will get an SMS alert of particular transaction and remaining balance so if by mistake card is swiped twice then you'll come to know. Minimum balance is 1000. To know more please visit your nearest IOB.

I also visited Axis. They have minimum balance of 5k. They will give you 1st month mobile banking free. After that for each month you have to pay Rs.250 for mobile banking. To have internet banking you have to subscribe to NetSecure Facility, that is also chargable.

Recently RBI Issued notice that One can withdraw money only 5 times from other bank's ATM in a month. If you exceed this limit then each time you will pay Rs. 20 Extra. You can withdraw 10k at a time.

By the way I liked the idea of RBI. First you launch any facility and once people get used to it, make it Chargeable.

Originally Posted by nilact

I also visited Axis. They have minimum balance of 5k. They will give you 1st month mobile banking free. After that for each month you have to pay Rs.250 for mobile banking. To have internet banking you have to subscribe to NetSecure Facility, that is also chargable.

The previous poster's requirement was for a "No Frills Account".
Axis Bank was mentioned in that context.
http://www.axisbank.com/personal/acc...-No-Frills.asp

further, as for "netsecure", netsecure with SMS and netsecure with webPIN is free of charge. (in case of normal and zero-balance accounts).
http://www.axisbank.com/netsecure/summary.asp

As for mobile banking charge etc., a Zero-Balance A/c with Axis Bank provides the facility of no minimum balance, free mobile banking, free internet banking, free debit card, free at-par cheque books, free all branch banking - all for a consolidated annual charge of Rs.500 plus service tax.

Call me a cynic or anything but no matter how much rationally you decide, the banks are gonna screw you som day.
So go for the bank that's nearst to you. Atleast that will save you some energy.

Originally Posted by charybdis_scylla

Call me a cynic or anything but no matter how much rationally you decide, the banks are gonna screw you som day.
So go for the bank that's nearst to you. Atleast that will save you some energy.

Banks exist to make money. But they do not make money out of Savings account.

There are many thing to concern with when it comes to No-Frill account
here is a complete story of mien

My sister wants to open a account in a bank. She was having a Union Bank account (min 500 for cheque request 1000) but they are very sluggish in every aspect of banking (slow u can say). So i decided to open a No-frill account for her in a good bank...

I searched the net and got some banks which are good and offering the no-frill account..
1) Axis Bank
2) Icici bank
3) Kotak

I selected the above because the Branch is Near to home and it will be convenient for her to visit the branch otherwise you know mumbai traffic.

First i visited Axis Bank
Before entering the bank i saw a guy setting next to the door. He was a Agent and he was opening new account (he had a big board on the big umrella NEW ACCOUNTS). So i went to him. He said for NO-frill account go inside. I did that and than the lady started her things like
This account have many limits
And many more stupid comments
After that she said that i will ask for a form of no-frill kindly be seated i said okay...
I again asked her in curiosity that this account have Internet facility doesn't it ?
She Replied
"This account do not have INTERNET BANKING FACILITY"
but in reality if you see their plan on website u will notice this

Code:

Azaadi-No-Frills

Phone Banking and Internet Banking: You can conveniently check your balance, transaction details, etc anytime from anywhere over telephone or using the Internet, for no extra charge.

Code:

Zero-Balance-Savings-Account

24x7 Telebanking & Internet banking

Wow that is BIG BANG for me... So i walked out of the bank..

2) I visited Kotak Bank
The customer service is pathetic if you say that you want to open "No-Frill Account". The lady started telling it disadvantages like previous one. The guy who was responsible for new account was not present at that day. My sister felt very awkward with their looks. They were like looking a Beggar. Wow my sister just wanted to get out of their...So i did she tore apart the form like anything....

3) Last try for her i visited ICICI Bank
First I would say one thing. A guy Technician and Assistance is very help full Always... till now i was only meeting with Gal/lady/women now in ICICI i got to meet a good executive man (i not a homo but really man at work do help a lot and they really solve the problem). I asked him about the No-frill account he say that it is a limited account and other disadvantages. He they tried to avoid us (you know but in sensible manner not like the previous one) so we started to leave the branch but again he called us bank and asked us to be seated while i ask someone...
Then he came back and asked for KYC. He than assisted in form filling process (really that is very good help till now). and we submitted the Rs. 500 and the papers.. After 12 day (yesterday) we received the courier which contain debit card and cheque book... WOW ICICI did a great job.
after few hours i received the PIN...

So that is how my sister got an account.. Now the bank is nice and good...


After a while i tried to open a account with kotak (same No-frill) and i mentioned the story before in this thread...
I provided them with my SBI DEBIT CARD AND BOI DEBIT CARD (both are from other city and like 4-5 years old not used because branch distance) the took a scan of it with my sign on it.

Now for the next story...
I complaint about the branch on service.bank @ kotak . com
i got a reply and it is like this
on 26 Aug 2009

Dear #######,

At the outset please accept our sincere apologies for the inconvenience caused to you.



With reference to your query we would like to inform you that we are in the process of investigating your concern with the relevant Branch and have arranged for an officer to contact you with regards to the same.



The reference number for this query is 1-185331782



Assuring you of our best services at all times.



Regards,



#### ####

Customer Correspondence Team

Yet no call...
So i re requested today let see what happens...


EDIT

today i got a call around 8:00pm (28 aug 2009)
They say that
I am not eligible for the Easy saving account because i have bank account in Sbi and Boi...
Now do help me in this..

Next day i again went to the bank with my brother (who works in a garage and do not have a bank account anywhere)
So i tried to open the account in the same bank and same account (easy saving) because his income is Rs. 1600 /month

Here is a Email i wrote to the service.kotak@kotak.com

Yesterday i received a call from your agent
There was a lady
She told me that the bank can't approve me Easy saving account just because i have a Account in SBI or BOI (which is actually not used because it is Pune Branch and currently i am situated in mumbai).
I don't know why they disapprove there is nothing Stated on the website regarding this.....
I would like your comment on above.
Next thing i done is i tried to open my brother account (just because i was not approving and he doesn't have a account)
So here is the profile

He works in a Garage (wielding/helper)
Earns Rs.1600/month
He want to save something
Undereducated (till 9th class)

I visited the Branch again with the specified document below

1) Voter ID
2) Driving Licence
3) Landline Phone Bill (in dad's name)
4) Rasan card

The same madam which responded and rejected my application for Easy saving account collected the document (xerox + signed). She didn't provided us with the saving account form. She kept the xerox and took detail regarding

Where he works ?
How much he earns?
Why he want to open an account with us?
From how many years is he working (6month)?
What is the name of the garage?
What is the name of his employer?
What is the phone number?

It is known as PROFILE CHECK in their language.

Now here is the problem
There is nothing stated in the site regarding Verification of client (i mean field verification where he work). still she told us that still he responded to the question which are really OUT OF POINT.
She kept the document and told us that they will verify the work location and inquiry about it with the employer it will take us 2-3-4 days. We said okay..But i insisted on WRITTEN REASON FOR REJECTION.


What is the issue with the bank...
This is My third aaplication
1) was my sister bank executive didn't attendant her and for atleast 3/4 hour she had to wait and than leave because of their terrific look at her.
2) My issue which i already stated...
The First point was they were asking me for a cheque of my account. I said i didn't operated the account (with other bank it is in pune that is why) and the account might had been closed down since long. I called up the call center of kotak and they said that DD is okay. But the branch Refused to take the same. They said that You need a cheque after 2-3 days they responded that your bank account SBI & BOI debit card which i provided xerox of to the bank is active so they can't provide me a Easy saving account.
Wah that is what called MISGUIDANCE, giving misinformation, misleading the client, or in simple word FOOLING THE CLIENT/CUSTOMER/CONSUMER.
3)My brother issue.
I will report about it with a Funny message which your bank will provide me after 3-4 days.


It is very annnoying and i am so so so much annoyed that i will really go Ombudsman kotak as soon as i reach the time and also the NODAL office of Kotak.

The things which are conducted are conflicting with RBI guidlines.
Waiting for your Reply. Hope u can solve the issue.

Reagards

Annoying very annoying but i will not lose hope

I repeat my suggestion made earlier.
Lodge a formal complaint with the Banking Ombudsman, and then sit back and enjoy the show.

^^Punchu, thats the nice sport to watch..
Ombud's men are the best players

What are the proof i should collect ?
As i already stated everything but how can i prove that i visited the bank and they rejected my appeal for opening a account?

He can file a complaint before the Banking Ombudsman if a reply is not received from the bank within one month of the bank receiving his complaint. He can also move the Banking Ombudsman if the bank rejects the complaint or if he is not satisfied with the reply given to him by the bank.

As per ombudsman rule i have to wait 30days and collect atleast 3 written proof before lodging a complaint.

Can anybody clearly stated in my condition which clause give me the right to complaint against the Bank to the ombudsman..?
is this the clause

(l) refusal to open deposit accounts without any valid reason for refusal;

but isn't deposit account means fixed deposit account ?
How to collect enough proof ?

there are rules about Banking around the net check it..

Originally Posted by mickey

there are rules about Banking around the net check it..

that's what i need i am not able to find rules related to No-frill account (officially)

actually i searched alot for you, but i am myself not able to figure out anything...

sorry will take me a long time, so be with me.. pls.

actually i searched alot for you, but i am myself not able to figure out anything...

sorry will take me a long time, so be with me.. pls.

Deposit means ANY deposit including deposit in No Frills Account.
Here is the master circular for No Frills Account

RBI/2005-06/204
DBOD.No.Leg.BC. 44/09.07.005/2005-06

November 11, 2005

To
All Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir,

Financial Inclusion

Please refer to Paragraph 96 of the Mid-term Review of Annual Policy Statement for the year 2005-06.

2. The Annual Policy Statement of April 2005, while recognising the concerns in regard to the banking practices that tend to exclude rather than attract vast sections of population, urged banks to review their existing practices to align them with the objective of financial inclusion. In many banks, the requirement of minimum balance and charges levied, although accompanied by a number of free facilities, deter a sizeable section of population from opening / maintaining bank accounts.

3. In this context, with a view to achieving the objective of greater financial inclusion, all banks are advised to make available a basic banking 'no-frills' account either with 'nil' or very low minimum balances as well as charges that would make such accounts accessible to vast sections of population. The nature and number of transactions in such accounts could be restricted, but made known to the customer in advance in a transparent manner. All banks are advised to give wide publicity to the facility of such a 'no-frills' account including on their web sites indicating the facilities and charges in a transparent manner.

4. The number of such deposit accounts opened by the bank may be reported to us on a quarterly basis.

5. Immediate action may be initiated and compliance reported to us within one month.

6. Please acknowledge receipt.

Yours faithfully

(Prashant Saran)
Chief General Manager

And if you are really serious about following the issue and bring the concerned bank to task (you must be ready to provide the time and energy for it), file an application withyour nearest RBI Office under the Right to Information Act with a postal order/DD of Rs.10, requesting for copies of all the circulars/notifications/rules issued by RBI for guiding the No Frills account.

Originally Posted by mickey

actually i searched alot for you, but i am myself not able to figure out anything...

sorry will take me a long time, so be with me.. pls.

actually i searched alot for you, but i am myself not able to figure out anything...

sorry will take me a long time, so be with me.. pls.

Hey mickey i will be with you (i have time untill the bank reply back for my bro account)


@panchabhut

Wow great deal of info and the suggestion is also good that will be very help full i will wait till the bank respond to my bro's account if they accept it than peace. If they reject it than i will put my efforts to know every thing and will try to take action on the bank through the lawful means.

One doubt through

To
All Scheduled Commercial Banks
(Excluding RRBs)

does that means Private banks too ?

Originally Posted by altainta

One doubt through
does that means Private banks too ?

absolutely. Scheduled Commercial Banks include all Private and Public Banks allowed to function in India.

I prefer a saving account in nationalised bank like SBI & Axis bank for regular monthly use. I dont enjoy the idea of putting my saving in private banks that invest more in market, makes me uneasy.
Although if for investment then its different issue.

@Nicspy


I prefer a saving account in nationalised bank like SBI & Axis bank

Recheck AXIS bank is private.

All S/B accounts upto to a limit of Rs One Lakh
is insured for each individual's account.
( Also Fixed Deposits)
You will not loose your money, as PVT banks are also paying Deposit Insurance.
ReCheck with your nearest Private Bank.
Some ( also IOB etc ) also insure you for Personal Accident Benefit for Rs 1 Lakh
for a premium of Rs 10/= per year.

very useful article ... :clap:

thanks rameshjee