Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 26th November 2014, 07:40   #346
Distinguished - BHPian
 
condor's Avatar
 
Join Date: Jun 2006
Location: Speed-brkr City
Posts: 10,647
Thanked: 4,176 Times
Default Re: Which bank to open an account in?

So you could have kept a RuPay card for all your India purchases/transations and used your Visa/Master etc for your international travel ?
condor is offline   Reply With Quote
Old 26th November 2014, 08:26   #347
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,862
Thanked: 1,892 Times
Default

Add Deutschebank to the list. Quite a lot like Citi - high avg quarterly balance (though that's often waived if you have a salary account with them) and excellent net / phone banking.

The trouble is that they only have one branch in Chennai and very few ATMs - though I believe with a corporate salary account they waive other ATM charges as well. Of course they have Rs.100 service charges for things a nationalized bank would do for free (eg: endorsing an ECS mandate), but beyond that minor irritant they are very smooth and professional in operations.

Quote:
Originally Posted by rki2007 View Post
I am closely associated with the banking industry so i have some information about the following banks:

Overall among the nationalized banks, I prefer SBI, SBM.
Among private sector banks:

ICICI- Too many procedures even for small things. However, banking is a breeze. Internet banking is very user friendly and easy. Branch banking is absolutely not required. No home banking policy.

HDFC- Operates like a government bank even when they insist to maintain a min balance of Rs. 10 K . (Ex Non- home banking withdrawal charges beyond a limit)

Citibank- Good if interested in modern banking. Internet banking is good. Branch banking is almost impossible. Min balance is Rs. 1 L which is sheer stupidity.

Axis- Staff are useless guys. Really don't appreciate the way they operate. Somewhat looks traditional banking style for me. May be others would have had good experience.

Canara bank, Syndicate bank, Indian Overseas Bank, Indian Bank - Staff react as if they are doing some social service/charity to the customer. Very old school of thought.

South Indian Bank- Ok. Good helping staff. Internet banking is not very comfortable, but reasonable.

Kotak bank- Nothing great except the 6% SB interest. Customer service is ok and nothing great to appreciate. Compared to Kotak, i would say Yes bank is better.
Quote:
Originally Posted by supremeBaleno View Post
I doubt he is right about that part. I have trawled through various websites, talked to multiple SBI managers/officers and got this clarified.
Though he is right in what he mentions last under point#4 ie. "do not open Multiple PPF Accounts in the names of the family members in different banks.

The keyword here is "in each". Adhere to the max limit of 1lakh in each of the accounts. Not "in both" taken together.
PPF accounts are linked to your PAN. You are not supposed to open multiple accounts in different banks / post offices.

The other accounts will get closed if you do that and you could easily invite income tax scrutiny of your return as well, these days.

The limit for PPF investment this year is 1.5 lakhs (which is what the investment under Sec 80C has been increased to). You are welcome to invest the whole of that in PPF but remember that several things such as school fees for your kids, life insurance premium, PF deducted by your office etc etc go towards that 1.5 lakh limit, so you might find it wasteful to invest a full 1.5 lakhs in PPF.

Even though PPF is EEE (exempt exempt exempt) wrt taxation, the returns are certainly going to be lower than carefully selected MF / equities held over the long term etc.

Finally remember your kids' incomes are clubbed with you unless they have some earning out of their own talents (eg: took part in a TV singing contest and won a 1 lakh cash award), and any PPF amount that you invest in your kids' names comes out of your 1.5 lakh quota for total 80C exemption.

Last edited by .anshuman : 26th November 2014 at 11:30. Reason: Back to back posts merged. Please use EDIT post button if posting again within 30 mins. Thanks
hserus is offline   Reply With Quote
Old 26th November 2014, 11:41   #348
BHPian
 
Deep Blue's Avatar
 
Join Date: Sep 2009
Location: Udupi
Posts: 594
Thanked: 231 Times
Default Re: Which bank to open an account in?

Quote:
Originally Posted by anubhav22 View Post
Meaning by if he/she does an FD of PPF maturity proceeds, interest is his/her taxable income and not to be clubbed with one of the parent.
Likely kid is still college going with 0 tax liability on that income as against 30% for the parent in similar case.
This is a good idea, I had not thought of. Thanks!
Deep Blue is offline   Reply With Quote
Old 26th November 2014, 12:20   #349
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,862
Thanked: 1,892 Times
Default Re: Which bank to open an account in?

Quote:
Originally Posted by Deep Blue View Post
This is a good idea, I had not thought of. Thanks!
FD is definitely clubbed with the parent for a minor child. And you can't open a FD in a minor's name without a parent being a co signatory with his pan quoted as well.

The only workaround might be that you open a long enough FD that it matures after the child is a major, in which case he can pay the tax on it himself, or claim it under his tax exemption.
hserus is offline   Reply With Quote
Old 26th November 2014, 12:46   #350
Newbie
 
Join Date: Aug 2012
Location: Hyderabad, AP
Posts: 21
Thanked: 13 Times
Default Re: Which bank to open an account in?

Quote:
Originally Posted by hserus View Post
FD is definitely clubbed with the parent for a minor child. And you can't open a FD in a minor's name without a parent being a co signatory with his pan quoted as well.
You are right for FD opened in minor child name.
However here the FD will be opened with PPF maturity proceeds (and assumption is child is major when PPF matures in 15 year period unless PPF opened for child <3 years of age. Even f it is <3 years, we can extend PPF account by another 5 years)

[/quote] The only workaround might be that you open a long enough FD that it matures after the child is a major, in which case he can pay the tax on it himself, or claim it under his tax exemption.[/quote]
This will not work as for FD accrued interest is to be added with parent income every year, meaning by every year whatever interest is accrued for FD in minor child, is added to parent income.

As for comment on original question on the thread, based on my experience: Citibank and Standard Chartered are good options for salary accounts as no limit on other ATM usage, free DD of any amount, free NEFT etc.
I also hear SBI is also a good option unless you plan to use other ATMs many times in a month.
anubhav22 is offline   Reply With Quote
Old 27th November 2014, 05:47   #351
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,862
Thanked: 1,892 Times
Default Re: Which bank to open an account in?

Sure but the other point is that there's nil value add from investing part of your 150k PA in your child's name. PPF is EEE - exempt exempt exempt so there's zero logic in sticking PPF maturity proceeds in a fd
hserus is offline   Reply With Quote
Old 27th November 2014, 09:21   #352
BHPian
 
allien936's Avatar
 
Join Date: Nov 2014
Location: Mumbai
Posts: 106
Thanked: 104 Times
Default Re: Which bank to open an account in?

Quote:
Originally Posted by condor View Post
So you could have kept a RuPay card for all your India purchases/transations and used your Visa/Master etc for your international travel ?
Rupay cards, as far as my knowledge, can not be used every where. For withdrawing money from any other bank's ATM, yes. But not for every POS (Point of sale). Rupay is in talks with Visa and MasterCard for collaborating the services so that all the Rupay customers can use the same POS machines that most of the retailers have currently with them. My Rupay card didn't work at shoppers stop, hence on contacting the bank, i got this information. Of course, this process will take some time, but it will be convenient for those who have their salaried accounts with Rupay cards. One more disadvantage is that these Rupay cards cannot be used for internet banking and online purchases as for now. Eagerly waiting for a better service from Rupay
allien936 is offline   Reply With Quote
Old 27th November 2014, 11:47   #353
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,862
Thanked: 1,892 Times
Default Re: Which bank to open an account in?

use a credit card for online or store purchases, just settle your bill in full when it cones due. You earn points that convert to, say air miles (citi premiermiles is great for this), or whatever else (railway tickets, free fuel etc depending on the card)

Given a bit of financial discipline, debit cards make no sense
hserus is offline   Reply With Quote
Old 27th November 2014, 12:00   #354
BANNED
 
Join Date: Nov 2014
Location: Bengaluru
Posts: 175
Thanked: 129 Times
Default Re: Which bank to open an account in?

Quote:
Originally Posted by hserus View Post
Given a bit of financial discipline, debit cards make no sense
+1 to this. As long as you can maintain the discipline, you can use your credit card for much better returns. I do not remember the last time I used my debit card to make any purchase and nor have I ever paid interest on my credit card till date. Something I am proud of, but not sure the credit card companies like it that much as my credit limit has not been increased in years.
ILTDrive is offline   Reply With Quote
Old 27th November 2014, 12:32   #355
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,862
Thanked: 1,892 Times
Default Re: Which bank to open an account in?

Well, even assuming they give you a limit of say 5 lakhs, ask yourself if you really want to run up a 5 lakh credit card bill. Then go back to peacefully using your credit card.
hserus is offline   Reply With Quote
Old 27th November 2014, 13:08   #356
BANNED
 
Join Date: Nov 2014
Location: Bengaluru
Posts: 175
Thanked: 129 Times
Default Re: Which bank to open an account in?

No, I do not want a 5 Lakh limit but would not mind having one though I will never use it, I just mentioned it as a comment for others to know.
Credit cards earn their revenue from customers who default on their payments, stick to the minimum amount pay cycle and pay up interests. They are their good customers, where as people like me, are bad customers. In the above scenario, who is likely to get a better credit limit?
ILTDrive is offline   Reply With Quote
Old 27th November 2014, 13:48   #357
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,862
Thanked: 1,892 Times
Default Re: Which bank to open an account in?

I do have a rather higher credit limit - though that comes from making some necessary purchases on an EMI plan. [eg: if a 12+ year old fridge or washing machine suddenly conks out and is too expensive to repair, you're stuck with buying a new one .. or one of those sudden trips where you have to fly your whole family across to delhi on some occasion with airfare being 15k per person]
hserus is offline   Reply With Quote
Old 30th November 2014, 07:46   #358
Newbie
 
Join Date: Aug 2012
Location: Hyderabad, AP
Posts: 21
Thanked: 13 Times
Default Re: Which bank to open an account in?

Quote:
Originally Posted by hserus View Post
Sure but the other point is that there's nil value add from investing part of your 150k PA in your child's name. PPF is EEE - exempt exempt exempt so there's zero logic in sticking PPF maturity proceeds in a fd
What if FD rates are 10% against ppf rate if 9% at maturity?
What if you do not want to lock your money for another 5 years?
What if you buy a house/shop with ppf proceeds and rent it out?
There are many such examples where you reduce your tax liability by creating an asset in your child name 'then'.
anubhav22 is offline   Reply With Quote
Old 30th November 2014, 13:27   #359
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,862
Thanked: 1,892 Times
Default Re: Which bank to open an account in?

Dude I just got done pointing out that PPF is EEE (exempt exempt exempt) which means withdrawal including interest on maturity is completely tax free. FD are taxed according to slab and each year till the kid is major the interest gets clubbed with yours for taxation.

Extend the PPF another five years till the kid attains majority or put it into a short term debt fund. You'll still get taxed but generally better than FD returns.
hserus is offline   Reply With Quote
Old 19th December 2014, 11:09   #360
NPV
Distinguished - BHPian
 
NPV's Avatar
 
Join Date: Oct 2009
Location: Namma Bengaluru
Posts: 4,739
Thanked: 4,566 Times
Default Re: Which bank to open an account in?

Anyone have recent experience with Demand Drafts from nationalised banks ?
The charges have been revised and very high - Rs.4 per thousand
After enjoying no fees for DD's from Citi (order online and delivered at the doorstep) this was a shocker for me
NPV is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Bank account for foreign remittance and Paypal withdrawal only? iTNerd Shifting gears 6 20th February 2015 11:41
Bank closed my car loan account by mistake! aeroamit Indian Car Loans & Insurance 74 7th December 2012 12:15
Bank charges fine for keeping an account idle Guna Shifting gears 24 12th May 2009 15:54
Open open open Sesame!! VJ_MAVRICK Shifting gears 12 10th January 2008 15:24


All times are GMT +5.5. The time now is 19:15.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks