Six steps to take for best use of your bank
Once upon a time you go to the bank only for savings account dealings,and business persons was goes only for current account dealings.But Now time has been changed the Banking process has become more comfortable but also more complex.there are few tips has given for smart banking
1.Watch your account and cash flow.mostly bank pay you a small interest against your deposit, this interest rate calculate only on the minimum balance held between the 10th and 31st days of every month So, it makes sense to make most of your payments and deposits between the 1st and 10th days of a month, if possible, to get the maximum interest on your deposit. Use cheques judiciously. Most banks give two chequebooks free per quarter and charge Rs 2 for every additional leaf.
If wants to avoid the writing out cheques, it would make sense to arrange for your bank to automatically pay your utility bills, SIP (systematic investment plan) installments and EMIs (equated monthly installments). Make sure you get an alert before the payment is made so that you can stop it if you think the bill is faulty.
The most expensive penalty is for non-maintenance of the minimum quarterly average balance. So, it pays to choose a bank where this is low or arrange it to be zero. Be sure about the regular outflows and ensure you have enough money in your bank to make the payments.
2. An overdraft facility on your account. The overdraft facility can ensure that your cheques don’t bounce and automatic payments are not held back even if there is a bit of a delay in the arrival of money. OD works as a safety net if you fail to track how much you have paid out. It is cheaper than taking a personal loan and needs no extra paperwork. For instance, State Bank of India [Get Quote] would give you an OD against fixed deposits at interest rate on FD plus 1.50 percentage points.
3. Try cooperative banks. You can turn to these if you are looking for a bank to make a term deposit or open an account. They often give higher interest than commercial banks, but may have limitations in terms of access. Their loans, too, could be a bit cheaper. But remember, they are riskier, so do your due diligence.
4. Make the best of your ATM card. Using ATMs for withdrawing money and getting statements is cheap and convenient. Some private banks limit cash transactions to 12 in a year from the base branches, that is, those in the same city. A charge of Rs 50 may be levied on every additional transaction.
5. Know your manager. One way to do this is to invent a pretext for meeting the bank manager and then creating scope for further interactions. If there is a problem, knowing someone in the bank helps.
Most managers would like to build strong business relations with their customers. So, they are likely to reduce or waive a charge if you bring it to their notice that it appears too high or that you have been billed for something beyond your control.
6. Be careful about bank investment instruments. Banks sell two kinds of investment instruments. Products such as fixed deposits and recurring deposits are offered by banks themselves and carry a government guarantee against a default or loss up to Rs 100,000.
In the second variety come products such as insurance and mutual funds. Even if a mutual fund scheme has been sold by a bank, there is no guarantee against a loss on an investment in it. Insurance will usually be pushed by your man in the portfolio management service.