[dass]

Originally Posted by theredliner

Hello guys,
Need some urgent help on this. My office has tie up with three banks, ICICI, Citi and Corporation(Nationalised). I need to open a salary account in one of them. I need an account which allows either zero balance or a very low balance limit (like 1000). I'm not interested in taking a credit card at the moment. I'm a noob when it comes to banks. So, please let me know ASAP which one is the best overall and rate them in your order of preference.

Thanks in advance.

Is there a corporation bank branch near your house? If yes, the I would suggest that you open it with a nationalised bank. There are few privileges that come along.
1. Nationalised banks issue passbook, can be used as ID and address proof across various government organisation.
2. Locker facility at affordable cost.
3. Better interest rate on FD compared to private banks.

On the contrary, you may not have the best online experience with a nationalised bank.

I am a privilege banking customer for ICICI, and yet I suggest a nationalised bank as there are no added benefits by being a privileged customer.

[RaguHolla]

Originally Posted by Fillmore

I am surprised that people are suggesting Citi Bank.

In a city like Bangalore they have just 2 branches. God forbid if you need to visit the branch for anything.

In recent years you need to visit branch compulsory due to KYC form which needs to be filled manually every year! The rush @ these branches surpasses any rush you have at nationalised bank.

I had salary account with them since 1998. I am now closing the account as hassel it involves to go and standing in line personally to give the KYC form every year. Otherwise services are great.

[supremeBaleno]

Originally Posted by AltoLXI

But here is the the post by S_U_N. See point 4 in the article (link in post) which mentions we cannot have more than 1 lakh (parent and child combined)

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.

Originally Posted by sdp1975

The PPF account opening form states :
I also declare that I shall adhere to the ceiling on deposits as provided for by Central Government from time to time which is 1,00,000/- in a financial year at present in each of the following types of Public Provident Fund Account.
a. Individual Self Account and Account(s) on behalf of minor(s) of whom I am the Guardian

The keyword here is "in each". Adhere to the max limit of 1lakh in each of the accounts. Not "in both" taken together.

[sdp1975]

Originally Posted by supremeBaleno

The keyword here is "in each". Adhere to the max limit of 1lakh in each of the accounts. Not "in both" taken together.

"Each" applies to either of (a) (b) and (c) below, taken from https://www.onlinesbi.com/sbi/downlo...20OPENING).pdf

a. Individual Self Account and Account(s) on behalf of minor(s) of whom I am the Guardian.
b. Hindi Undivided Family Account
c. Association of Persons account as applicable in the State of Goa and Union Territories of Dadra and
Nagar Haveli and Daman and Diu.

I've also edited my opening post with attachment GSR 908(E) that clearly states the combined limit of 1 lac ( 60,000/- at the time of the notification) :

I also declare that I shall adhere to the ceiling on deposits as provided for by Central Government from time to time, which is Rs.60,000/- in a financial year at present together in an Individual self Account and Account(s) on behalf of minor(s) of whom I am the guardian / a Hindu Undivided Family Account / an Association Account.


One runs the risk of not getting any interest in the worst case .

Interpretations can vary where there is a lack of clarity .Unless one is willing to run to court for a favorable interpretation of the PPF rules - I would recommend staying within 1 lac for guardian + minor.

[theredliner]

Thanks to all for the help. Didn't know citi has only 2 branches. That will be a pain. After reading some benefits of nationalised banks, I'm slowly leaning towards Corp Bank.

Originally Posted by dass

Is there a corporation bank branch near your house? If yes, the I would suggest that you open it with a nationalised bank

There isn't any one too near by. But there's one within 5km. I got to know that when the account is no longer a salary account, the minimum balance limit in Corp changes to only 500/1000. That's like nothing. That's an advantage.

Originally Posted by RaguHolla

In recent years you need to visit branch compulsory due to KYC form which needs to be filled manually every year! The rush @ these branches surpasses any rush you have at nationalised bank.

That'd be a big trouble. One more reason to opt for Corp I guess.

[dass]

Originally Posted by theredliner

I got to know that when the account is no longer a salary account, the minimum balance limit in Corp changes to only 500/1000. .

In SBI, the minimum balance is 1k, so I assume it to be the same at corp bank too.

[msdivy]

RBI had stated that, effective November 1, banks can start charging account holders in six metros — Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore — for transactions more than five times a month at their ATMs - note that in their own banks' ATM.

Cannot understand the rational behind this. Banks have invested in ATMs, but why reduce their usage?

PS: Before ATM era, banks had limit of 1 withdrawal per day. So at-least they must provide 30 transactions per month to match the pre-computer age.

[rki2007]

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.

[Raccoon]

Originally Posted by dass

Is there a corporation bank branch near your house? If yes, the I would suggest that you open it with a nationalised bank. There are few privileges that come along.
1. Nationalised banks issue passbook, can be used as ID and address proof across various government organisation.
2. Locker facility at affordable cost.
3. Better interest rate on FD compared to private banks.

On the contrary, you may not have the best online experience with a nationalised bank.

I am a privilege banking customer for ICICI, and yet I suggest a nationalised bank as there are no added benefits by being a privileged customer.

I'm not sure thats true. Or its not true for all pvt/PSU banks? For eg., when I last looked, HDFC does have passbook facility (at home branch only). But if you opt for it, you don't get statements by post (or even by email, IIRC). In 2014, I feel its criminal to waste time going to the branch to get a passbook filled, hence passbooks don't work for me at least. However, some banks have facility to get your passbook printed at ATM outlets. I saw a board regarding this outside a PNB ATM. IIRC, even some SBI ATMs have this facility. No idea about other banks. I so wish more banks offer this facility.

Last few times I checked, I did not find PSU banks offering higher interests. If at all, the difference is very marginal. But then it may depend which banks you are comparing.

Personally, I find service levels of the few PSU banks I'v interacted with to be quite unacceptable, esp. when compared to the treatment I'v received at pvt. banks. Ditto about other processes, net banking, etc. However, there are exceptions where some PSU banks outdo pvt. banks in terms of technology/facilities provided, the passbook printing at ATM outlets, for eg. I'v not heard any pvt. bank offering this. Anyone who knows better, please do correct me, if I'm wrong.

[anubhav22]

Originally Posted by Deep Blue

I don't want the exemption. I want to know whether I can invest one lakh in my PPF another lakh in my son's PPF in the same FY. I was told it has to be a total of one lakh/person in a FY.


Exactly.


My other doubt was if I can invest only one lakh total in both mine and my son's account, how does opening an account so early for him make a difference. If the goal for the accumulation is his expenses 15 yrs hence, how does it matter whether it is in my name or his?

Thank you all for your suggestions

The main reason to open a PPF account in name of kid early is when the account matures, kid is already major and he/she can use that money for his/her own without inviting clubbing provisions.
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.

[rki2007]

Had a very bad experience with the SBM Guys. Typically old fashioned people. There are absolutely lethargic and very difficult to get things done, even basic things.

I had been visiting the bank for a small work for more than 5 times. Literally lost my patience and had to yell them at the top of my voice to get things done. They behave as if they are doing some charity services to the customers.

So I prefer to stay away from SBM forever.

[shankar.balan]

I am a firm believer in Banking with our first class Indian Multi National Banks. HDFC and ICICI spring to mind immediately.

The main reason is that I would like to see that the money remains in India and is used for development, loans and other welfare oriented things in India, for India.

I see no reason why I need to use a Foreign Bank when my country's banking system is one of the best regulated ones in the whole world and when my country's Multinational Banks offer me first class, bespoke service.

For the same reasons mentioned above, I do not wish to get myself any Foreign Bank Credit Card. I would much prefer to give my business to the first class Indian banks as called out above; HDFC and ICICI.

I don't know how much difference that my small moneys will make, but however small, I want it to make a difference right here in India.

[NPV]

Originally Posted by shankar.balan

I am a firm believer in Banking with our first class Indian Multi National Banks. HDFC and ICICI spring to mind immediately.

Seriously, these two ?
Hmm, I guess everyone has a different perspective. I'd give much better rating to our nationalised banks SBI, etc than these two. Sorry, no offense!

[condor]

shankar.balan : For the same reasons mentioned above, I do not wish to get myself any Foreign Bank Credit Card.

@Shankar, which card do you use ? Visa / Mastercard / other ?

[shankar.balan]

Originally Posted by condor

@Shankar, which card do you use ? Visa / Mastercard / other ?

Visa and MasterCard are the primary "networks". All Cards are issued by the local banks. Of the "Merchant Service Charge" they pay out a small percentage to Visa or Master but retain the rest as their "take".
I would simply prefer that this "take" remains with an Indian Multinational bank rather than a Foreign one.
I use both Visa and Master powered cards because I need my cards to be accepted outside of India and for International transactions. I do not use a PayPal account.
Of course,RBI is busy pushing the new "RuPay" as an alternate to Visa and Master. However, as of right now, RuPay users will encounter acceptance issues while travelling abroad because this is primarily for use here in India.