I admit that I’ve been writing quite excessively on matters relating to finance and business of late. I’m sure all of you must be finding it extremely tedious to read them. However, please allow me to complete my second trilogy on banking and related issues after the one on plastic cards and I promise not to click on the “Personal Finance” link for a long time after this one.
Selecting a good bank is very important as it signifies the beginning of a long relationship to cater to one’s financial requirements. Initiating a relationship with a bank is not something like going to any grocery shop and buying whatever you need. It is therefore very essential that a lot of factors be considered before zeroing in on a bank. At the very outset, be clear as to what your banking requirements are at present and what they are likely to be in the future.
The most commonly asked questions could be:
The kind of facilities one can avail are directly linked to the transactions done on a regular basis. These transactions will vary from a salaried individual to a housewife to a small time businessman.
Do I need just the basic services like a savings bank account with an ATM and/or Debit card or do I need other facilities too like Internet/Tele banking, Credit cards, home and vehicle loans, Demat account, etc.?
Most banks these days charge varying amounts for different facilities offered and also stipulate certain minimum balances to be maintained for different accounts. How much am I willing to shell out for this?
How many transactions do I make each month? Do these require me to go to the Bank or can I do the same on an ATM?
Once I finalise on the above aspects, I go about looking for a Bank that satisfies my requirements by doing some homework of my own which involves digging out information on various banks like the range of services offered, charges payable, convenience of working hours, Branch and ATM Network, overall reputation, efficiency and service standards, interest rates, etc. Apart from getting the required information from newspapers or the bank’s websites, I should also ideally try to extract some information from friends and neighbours and seek their advice.
Some banks offer a variety of services tailored to specific groups of people(such as students, senior citizens, business owners, etc.). Each can be a factor in your decision. Competition is alive and well in the banking industry, therefore comparison-shopping definitely pays in the long run. Once the bank has been finalised based on external information and feedback, I would also advice personally going to a branch of the bank and getting a feel of it oneself. While modern banks are certainly not fashion bistros with models manning the counters, it certainly helps one to get a hang of the ambience, the services rendered by the staff, efficiency of service, etc. Most private Banks also offer the convenience of extended banking hours by functioning for 8-9 hours a day on normal weekdays and 4-6 hours on Sundays which is a welcome development from the days of SBI and other nationalised banks.
Apart from normal functions like savings bank accounts and fixed deposits, most banks today offer the following services either at a nominal charge or free of cost - Demat accounts, Internet banking, Telephone banking, Debit/Credit/ATM cards, consumer/housing loans, Loans against Demat/physical shares, automatic payment of monthly utility bills, direct debit to savings account for online shopping or e-trading, etc. Most of you might already have knowledge of the above products/services, hence I will not take up space and time in explaining them. While I might not be needing most of these services/products as of today, I can definitely anticipate, depending on the requirements of my job as to which of them night be useful to me in the future and allow me to opt for them accordingly.
Happy Banking.