How to Choose a Bank in India – 7 Things to Consider

Are you planning to open your first bank account? Or do you think that you should switch your current bank account to a new one? But do you know how to choose a bank to invest? Whatever the reason is, one should consider few points before choosing a bank in India. These days, people split their money in several banks to reduce the risk. But everyone has their own comfort zone with any of their favorite bank, that most of their banking activities are performed from those banks only. In this article I will share 7 things one should consider while opening a bank account with any of the leading banks in India or you can check whether your current bank is providing you these facility or not.

How to Choose a Bank in India

If you ask anyone about the most popular banks in India, then the answers will be almost like SBI, ICICI Bank, HDFC bank etc. But do you think your life will be easier in case you only choose them? Let’s check out the checklist for choosing a bank in India.

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1) Charges for products & services: Every bank has their own structure of charges on various banking activities like ATM money withdrawal limit, cash withdrawal, different bank cheque deposit, investment guidance etc. Look whether the bank you are looking for is providing the less charges compared to others.

2) Penalty structure: In case you miss a due date of payment of anything like credit card bill, home loan EMI or personal loan instalment whether your bank is ready to hear that why are not able to pay that? Does your bank provide a buffer window or a second chance for their customer or strictly penalize you without listening to your genuine problem?

3) What about Quality of Service: In the age of technology and customer satisfaction, every bank is looking to provide a best user experience for their customers. What about your bank regarding this? I think you might have heard about the latest account opening process from ICICI bank where a bank representative will visit your home with a tab and collect every document and open your account in just few minutes without giving you a single trouble.

4) Are you getting un-necessary advice? As the financial year is going to end in next few months, every bank will gear up to promote their investment, insurance products eg. Kotak bank’s Kotak e-term plan. Even though you have done enough for your current years financial planning, you may get some additional advice from your bank. Does your bank also provide un-expected advice again & again just to meet their targets?

5) Working hours: This is one of the crucial factors where couple of private banks are providing flexible working hours like bank will be opened on Saturday & even on Sunday also so that people who are not able to make it on weekdays can complete their bank activities on those days.

6) Do your bank have every financial product you are looking for? These days every one wants to open their key transactions from a single bank of their choice. But what if you discover that your bank doesn’t provide personal loan or doesn’t sell an insurance policy or don’t have any option to invest in mutual fund. So, its better to look for a bank who can act as a single window for your entire need of investment.

7) Technology: This is the last but the most important point compared to all of the above. Do you know that now a days people love to access their bank accounts and perform 100% of the bank activities by using net-banking facility even without visiting branches? Does your bank has the best technology to handle your entire banking need online?

So, what is the reason behind opening a new bank account or switching your bank account to a new bank, you should prepare a checklist to identify why you are doing this and what you will get after taking action. This will help you to judge your action and off-course to be a part of the best bank in India.

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