Tips on Choosing a Bank

I have accounts with a large public sector bank and also a large private sector bank. I had decided to open an account with any smaller, relatively new private sector bank, based on the better interest rates they offer, services like Sunday banking etc, and, on assumption that small private sectors banks would be aggressive in terms of satisfying the customer by providing better services. This led me to choosing IndusInd bank. I am summarizing my experience below and will conclude in light of that

Why did you open an account with this bank?

I opened a savings account with IndusInd Bank. I found interest rates were very attractive. Also, they had promised Sunday banking which seemed a great relief to me.

What did you particularly like or dislike about this bank?

When I opened the account with average quarterly balance limit of Rs. 1000/-, they also provided a free ATM / debit card with it. There were multiple instances of cheating by the bank on this:

1.  After first quarter, they deduct around from my account, which they claimed as ATM / debit card charges. Actually, they had forcibly given me the ATM card saying it was free. I later returned the card, saying I didn’t needed it, so that no further deductions are done

2.  After around one year, they again deducted ATM card charges again, even though I was not holding their card and had returned it long back

3.  After another quarter, they deducted around Rs. 500/- from my account as quarterly dormancy charges.

4.  Also, they increased average quarterly balance without informing me. Then, they penalized me for not maintaining the minimum balance.

1. For whom would you recommend this bank?

I would not recommend IndusInd Bank due to following reasons:

1. Initially, they forcibly give you debit card saying its free without any charges, but silently deduct annual maintenance charges later. Even if you return it, they continue to deduct charges for subsequent years

   
   




2. They also suddenly change rules without informing the customers. E.g. My account was sparingly used by me, and they had not deducted any penalty on it for five quarters, then suddenly in sixth quarter they deducted quarterly penalty

   
   




3. They do not inform customers before increasing minimum average quarterly balance

   
   




4. Also, even if you do not hold debit card etc., they still deduct charges for it( Reason might be that when you give them a letter asking to discontinue debit card, they do not enter that into system)

   
   




5. They provide counter-offers which are against law, e.g. they ask you to open new FDs etc to get incorrect charges reversed etc

   
   




6. Further, when I was present at their branch, I observed that many people were coming with similiar complaints like cheques getting bounced( even though account had enough balance); debit card charges for customers not holding one; and, inward remittances getting messed up( in such cases they ask you to contact Delhi branch saying its not their problem)

   
   




7. Lastly, after you have opened the account, the staff, especially at IndusInd Bank Kandivali West Mumbai branch is very rude and insults people and shows we don’t care attitude if you highlight that ATM debit card charges are incorrect or sudden penalties have been levied on your account

   
   




8. Also, if you approach managers to solve your problems, they get defensive and do not accept mistakes, but try to frame you

   
   

In short, they openly violate the BANKING CODE OF CONDUCT, as we people don’t have time to fight them. Also, as you saw in my case, the savings from better interest rates were offset by all the ad-hoc charges deducted by them regularly

Important tips on choosing banks

1. We assume small private banks might provide better service

   
   




2. However, the staff at such banks is very incompetent and basically try to avoid work

   
   




3. Also their information systems don’t work properly

   
   




4. They openly violate rules by charging unfairly