I know, in my last post i had mentioned that i was going to move away from HDFC bank to maybe Kotak because of the higher savings interest rate. ( here is the subbu advertisement from kotak on youtube)
Now, i got quite a few responses about how great HDFC bank is.
Here are a few positives that i got from some of my readers..
1. We have been banking with them for so long-- its our bank!
2. They give so many additional facilities- like lockers.
3. Its tied to HDFC - we may get preferential rates!
Now, here are a few of my answers.
its not as if i am against HDFC bank-- in fact it was my first bank post my MBA- my first salary account continues with HDFC bank.
But lets make some clear distinctions.
1. Its not "Your Bank". They will not hesitate to charge you money for services used. In fact they give you one of the lowest deposit rates on FDs and charge you always- on time.
2. Lockers cost around 2000Rs per annum. So if you have one lakh Rs in your SB account usually- the additional interest will easily cover the cost of the locker. In fact HDFC will give free lockers only if you are a premium customer for them with a large bank deposit or relationship... so why not move the money and get additional interest. Also , how do you know that Kotak or other banks will not give you the same facilities if you have the same amount of relationship with them.
3. Its not tied to HDFC - they are not even related.. they were a long time back- they do however sell the homeloans and may help you get a lower initial upfront cost.
Now- the other piece that one must consider is "reach". One can see HDFC bank on every nook and corner and Kotak is far and few in between. ATMs are also not that wide a reach. This is an important factor for people- convenience.
Evaluate what makes sense for you as a family, individual, company.. and then take a smart decision- one that works for you..
Smart investing.. :)
.. and enjoy--- " why this kolavari di" http://www.youtube.com/watch?v=YR12Z8f1Dh8
Now, i got quite a few responses about how great HDFC bank is.
Here are a few positives that i got from some of my readers..
1. We have been banking with them for so long-- its our bank!
2. They give so many additional facilities- like lockers.
3. Its tied to HDFC - we may get preferential rates!
Now, here are a few of my answers.
its not as if i am against HDFC bank-- in fact it was my first bank post my MBA- my first salary account continues with HDFC bank.
But lets make some clear distinctions.
1. Its not "Your Bank". They will not hesitate to charge you money for services used. In fact they give you one of the lowest deposit rates on FDs and charge you always- on time.
2. Lockers cost around 2000Rs per annum. So if you have one lakh Rs in your SB account usually- the additional interest will easily cover the cost of the locker. In fact HDFC will give free lockers only if you are a premium customer for them with a large bank deposit or relationship... so why not move the money and get additional interest. Also , how do you know that Kotak or other banks will not give you the same facilities if you have the same amount of relationship with them.
3. Its not tied to HDFC - they are not even related.. they were a long time back- they do however sell the homeloans and may help you get a lower initial upfront cost.
Now- the other piece that one must consider is "reach". One can see HDFC bank on every nook and corner and Kotak is far and few in between. ATMs are also not that wide a reach. This is an important factor for people- convenience.
Evaluate what makes sense for you as a family, individual, company.. and then take a smart decision- one that works for you..
Smart investing.. :)
.. and enjoy--- " why this kolavari di" http://www.youtube.com/watch?v=YR12Z8f1Dh8
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