Nov 22, 2007 04:46 PM
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(Updated Nov 22, 2007 04:48 PM)
Opening a fixed deposit with SBI be aware to ask terms and conditions before investing. Although many banks offer opening FD online, below experience will showcase how SBI operates and precautions that public at large should exercise while dealing with SBI.
A placard demonstrating FD interest rates will be illuminated in the blank. That’s very transparent! But take a lesson to be punctual and mark your calendar with SBI on particular dates, else you will be penalized for no fault of yours.
1) If you are opening a FD be sure to turn and stand in branch on exact day of completion of contract. Say you are opening a FD for 180 days, mark your calendar with appointment with SBI exactly after 180 days. If you fail to appear on 181th day to collect your maturity amount, your FD will be auto renewed for next term considering and imagining that you have authorized branch forauto renewal. The FD amount with interest will not be credited to your saving account, even if you are their existing customer.
2) So if you appear, say on 225th day, you will be asked to produce your FD receipt. You will be asked to write – credit to saving a/c – and sign it. Then you will be asked to go home. If you ask for some acknowledgment you will be asked to wait for 30 minutes and update your passbook.
3) So your due amount is credited to your account, happy now.WaitWait Wait and check how much is credited to your account. So if you understand how interest is calculated, how days are counted and how to operate percentage button on your calculator you will find SOMETHING FISHY. So go and meet executive manning FD counter and she will say I don’t know, System has calculated it. So where to find systems. A branch manager will not try to understand your queries and may probably tell you history of fixed deposits.
4) On perseverance you will find that you were credited at rate promised for 180 days and for extra period you were credited at much lower rate.NO PRINT OUT OF BIFURCATION DONE BY SBI IS AVAILABLE. SBI dreamed earlier - you were going to park your funds for extra six months – and as you are defaulter for asking for credit to a/c before completion ofsecond inning you will be surprised to note that you are fined by Rs. 30/- plus as penalty.
5) So if you have invested Rs 30000.00 you will receive at least Rs60 less than what you could have earned by keeping the same amount for same period in other banks.
Perhaps you are not aware how simple is opening and operating FD’s in other banks. You can apply FD online. Amount will be debited / auto credited to your saving account, you are not required to wait for FD executive to have a look at who you are. You are not required to appear in person or thru your messenger with sign on loosely printed FD receipt where SBI FD executive will ask you to write your a/c number and make you wait for 30 minutes. Can’t SBI trace a/c number with FD number?
If someone asks a copy of terms and conditions governing FD rules SBI branch manager will say, I will have to check and try coming branch after 2-3 days.(As if customer doesn’t have any other work?) Why policy guidelines should not be shared with customers? Why don’t SBI make it simple by printing on FD receipts itself that – SBI is so fascinated with word AUTO RENEWAL that SBI FD will be auto renewed and –x- amount of fee will be charged for breaking the term in the second inning? (Where SBI has renewed the term without obtaining prior written consent of customer). Many banks provide printed receipt for FD. Customer can retain those receipts for future records. Instructions and terms and conditions are printed on FD receipts.
This is unjust enrichment of the party at the governing end and customers reading this first hand experience(Paud Road SBI Pune) are requested to be punctual at least when they are dealing with FD’s at SBI. So if transparency is what you expect from SBI, perhaps RTI application will nail the truth.
~ Avinash Murkute
Email: avinash.murkute@gmail.com
