Preferred Banking or not?

POSTED BY Ayush ON July 8, 2013 11:52 am COMMENTS (5)

Hello everyone. I have two savings accounts. One with HDFC Bank and and one with SBI. I use one account for savings and investments and the other one for daily expenses. Sometime back i made some fixed deposits greater than 15 lacs in HDFC Bank and they converted my account from regular to Preferred without taking a consent from me. I recently read this article “Should you become Priority Banking Customer? Are their any advantages ?” by Manish, here is the link, https://www.jagoinvestor.com/2013/07/priority-banking-review-good-or-bad.html Now i am thinking of deraising the account to regular. Should i do it or should i wait till i have the FDs with the bank? Any suggestions will be helpful.

5 replies on this article “Preferred Banking or not?”

  1. Mohit Pandey says:

    @Ayush :- I am sure you also don’t want this nonsense service from bank but you want to hear from others so let me tell you if i could have been in your place I could have been taken HDFC bank on remand….

    Always remember Simplicity is best……so before you got some shock change it to regular…learn from others mistake…

    Why don’t you try Yes Bank SB A/C. I am using it from long time and it gives 6% interest upto 1 lack and 7% on more than 1 lacks, unlimited ATM transaction (any bank) and unlimited NEFT transaction. QAB is 10 k.

  2. Ayush says:

    Thank you everyone for their replies.

    @Mohit and Ashish, I agree with you. But i do have a locker with them and i do at least 5 NEFT transactions a month.

    @BanyanFA, I called their PhoneBanking and they said minimum Rs 250/- per month would be levied in case of non-maintenance of minimum Average Monthly Balance (AMB).

    What should i do? Should i deraise it?

  3. Ashish Garg says:

    Dear Ayush,

    Below are the listed benefits of being a “PREFERRED CUSTOMER” with HDFC Bank:

    Dedicated Relationship Manager – Absolutely useless. They keep on changing every now and then and will most possibly not help you when the actual need is.

    Customized Investment Solutions – Do you really need this?

    e-Broking – Almost every trading house today has e-broking portal.

    Business Solutions – Is this of any use to you?

    Expedite Tax Payments – You can do this using any online bank account

    Exclusive Privileges
    Premium Credit Cards from HDFC Bank – Assume that you must be having it already.

    Preferred EasyShop Platinum Debit Card – Regular Debit card ca also provide you the same.

    Relationship Pricing – Only on paper, nothing in realty.

    Forex: Preferential Forex Rates – Only on paper, nothing in realty.

    Demat: Not anything BIG that counts.

    Locker: 50% waiver on annual locker charges – Tryst me you will never get a locker at HDFC.

    Free “At Par” cheque book payable at any HDFC Bank branch across the country, so you do away with the need to ask for demand drafts – Everyone gets it today

    Combined monthly statement for your Savings, Current and Fixed Deposit accounts for which you are the principal holder. This facility is also available for email statements – Is this really a big deal, aren’t we all get it?

    Sweep-in facility on your Savings Account – Whats the big deal here?

    Cheque pick-up facility – How many times will anyone actually requires this?

    No charges on NEFT and RTGS transactions through Netbanking – Few Rs can be saved here.

    Waiver of AQB non-maintenance charges – Upto what elvel?

    BillPay to pay all your utility bills and Insurance premiums through PhoneBanking and NetBanking – Available with all accounts.

    Demand Draft / Manager’s Cheque charges – Save money here
    Inter-branch funds transfer charges
    Stop Payment charges
    Cheque return / collection charges
    DD cancellation charges
    Hold Mail charges
    Duplicate statement charges
    Certificate of balance charges
    FIRC charges
    Recovery of old records charges
    Anytime, Anywhere Banking
    HDFC Bank Branch Network
    HDFC Bank ATM Network
    Free alerts on your mobile phone or in your mailbox by registering for our InstaAlert facility.
    Free registration for e-Age Banking – Avail of MobileBanking, NetBanking, or PhoneBanking.
    No charges on balance enquiries and cash withdrawals if you transact on non-HDFC Bank ATMs in India.
    Other Privileges
    Enjoy Preferred Service at Priority Lounges and teller counters available at branches across the country
    Get product offers and investment insights with the monthly e-newsletter exclusively for Preferred Customers. – Basically means unwanted mails / calls.
    ———————————————————

    I hope you can understand that it’s just a gimmick and nothing valuable. There is no harm in being a Preferred Customer but there is no big benefit as well.

    Ashish

  4. BanyanFA says:

    Aayush,

    You may want to communicate with them via their secure email option. Just email them and take from them in writing that upgrading you to Premier / Priority account doesn’t come with any charges or obligations from your end. If the answer is in your favour, enjoy its benefits as long as they last.

    Having said that, frankly I haven’t utilised any material benefits from priority banking in the past.

  5. Mohit Pandey says:

    Hello Ayush,

    First ask written explanation why they have converted you from regular to preferred and instruct them don’t do this in future without your consent.

    Just go and convert it to regular one. They just make fool by using word preferred .

    I had same experience with Standard Chartered Bank, they have diducted 1500/- for not maintaining minimum quarterly balance 1.25 lacks for once. I just went to bank and closed the account.

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