Choosing a bank-- a 1% difference.

I think this is an important factor in our financial plan for multiple reasons.

In todays world our banks are becoming more and more automated and less personal. I mean how many people recognize us in the banks we bank in? I remember i used to go with my grandfather to the bank when i was small and everyone knew him! He was retired but everyone gave him respect and spoke to him, welcomed him at the bank.

Now when i go- no one recognizes me-- I mean i am some sort of preffered customer-- but who cares? Not the bank. The only person who recognizes me is the relationship manager.

So whats my point?

1. In todays world the services of one bank to another are hardly different-- I mean everyone offers a credit card, online banking and ATMs upto a certain value are free anyways- we should choose a bank that caters to us-- aligns with us-- their customer.

We can see some changes that are happening-- ICICI banks advertisement are to this point only-- Khayal aapka ( though my experience has never been good with them).

2. The smaller banks also value your money and actually give you a higher interest rates on your FDs versus the bigger banks who have a lot of money already. One case in point is below

HDFC banks gives you a deposit rate of 6.5%  for a tenure of 1 yr 17 days- 2 yrs and DCB gives a 7.5% from 18 months to 3 yrs or 7% for a 1 yr to 18 months..--- thats like a 1% difference!!

Big banks will never give you larger rates because they have the leverage and they think they provide you with better service ( I still am not able to see how)

Somebanks are trying to differentiate themselves- ICICIbank has some special offers if you use their netbanking-- interesting changes are happening in the marketplace.

So- please evaluate where one is comfortable-- one that will value your business.

Evaluate your options... dont settle for less!

Happy investing

( if you like these posts-- dont forget to join in as a friend or subscribe to the feed)