Anoop Kumar Gaur
When we open an account in a bank, the bank employees provide us with important information related to the account. Usually we just listen to the information they tell us, but we also need to ask some important questions. Banks may charge for various services and this is why it is important to have clear information about the terms, charges and interest rates associated with the account so that there are no unnecessary burdens or problems in the future. Savings Account Interest Rate If you are going to open a savings account in a bank, ask how much interest the bank will give you on the deposited amount. Not all banks have the same policies regarding interest rates and fees etc. Be sure to ask how much interest your bank will pay. Interest Payment Period Most banks pay interest quarterly, but some banks pay interest monthly. By paying interest every month, you can avail compound interest on your deposit on a monthly basis. If you are going to keep a large amount of money in a savings account for a long time, you should definitely clarify this topic. Amount less than minimum balance If for any reason the amount deposited in the account falls below the minimum deposit amount, then find out specifically from the bank itself how much penalty is charged by the bank. Generally, government banks have lower minimum balance requirements and penalties than private banks. That is why this is a very important question. Know about other charges Banks provide facility of ATM card, net banking and free check book. Most banks offer free ATM cards for the first year only, with charges being levied in subsequent years. Find out about all these charges from the bank itself. Adequate knowledge about home loans If you are planning to take a home loan, understand about the interest rates. Interest rates on home loans can be fixed or floating. Choosing a floating interest rate may be a better option. Banks may charge a fee while switching from fixed to floating or floating to fixed. Additionally, inquire about valuer's fees for property valuation, mortgage registration and stamp duty etc. Talk about relaxation of proposal processing charges. Also find out whether banks offer concessions or waive it completely during festivals. Learn about property insurance premiums and other costs. Many banks charge pre-payment charges for pre-payment of loans. Know your bank's policy and rate in this regard. Locker Rent If you are taking a locker from the bank, find out about its rent. Locker rental varies depending on the size of the locker. Be prepared in advance with a few questions when opening a bank account so you can avoid unnecessary fees and hassles. Knowing about account terms, fees and interest rates will help you better manage your money.
What if to make a fixed deposit? Apart from knowing the interest rate on FD, also know how much penalty the bank will charge if you need the money before the maturity date. Generally, banks reduce the applicable interest rate by 1 percent for the period for which your money is deposited in the bank. Also, if you are a senior citizen, ask if the bank is giving you extra interest. Find out what the interest rate will be if you take a loan or overdraft by pledging your deposits.
Special Schemes for Women Many banks announce various schemes from time to time. Opening an account under this scheme while it is running gives a good profit. For this reason, if women have any work related to banking, they should first check whether the bank is providing any special facilities to women. It is noteworthy that in many banks personal loans are given to women for higher education, travel, marriage and other goals at attractive interest rates and the documentation for the same is also easy.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
