A rational mix. Review on Tips on Choosing a Bank

This article specifically refers to personal banking aspects. Normally no person having a decent income would have only one bank account. A person normally has 4 -5 bank accounts. And hence what is needed is a rational mix of varienty of types of banks.

I am not attempting here to recommend a particular bank but advising on how to select a particular type of bank.

A banking service may be need  for following purposes:-

(i) To meet day to day banking needs:- Here you deposit your salary / monthly income and withdraw money from time to time to meet your petty needs.

Here your personal contact with the Bank is important. You don't keep heavy balance in such accounts. Hence you may take risk with small and cooperative sector banks to fulfill this need. Cooperative banks give special and specific treatment to the customers and give least headache even if u were to visit the bank daily. Select a computerised branch of any cooperative bank.

(ii) To invest your surplus deposits to earn heavy rate of interest. Here a person looks for higher rate of interest and safety.

Though nationalised banks are lousy in service in India, they rate very high in safety aspects. You may select couple of nationalised banks to park your surplus deposits. You need to visit only couple of times in a year and hence you should not be bothered about the service level.

You may also select one private bank of high reputation. You can open account in all the branches of that private bank in the city. This is to avoid TDS on a deposit. You here need to visit only one branch to bank through all the branches.

(iii) You may need certain special services during the year. This may include Demat services, Forex transactions support etc. Here again private banks of good repute would be best as you they offer all the services through single Service Outlet.

This is just a brief of how u should select your financial partner.

Fortunately in india now a wide choice is available for banking and hence customer can go for a Rational Mix