Save your savings account from your bank

The bank is supposed to provide you a savings bank to help you save money. In actual practice it seems to be the other way around. The banks it seems are after your money. You need to save your money from the bank.


1. Hidden Fees and Charges

Make it a habit to check your account statement at the end of every month. Please look out for a suspicious transactions in your bank account statement. These are small amounts, typically less than Rs 500 going out of your account. If you find them and confront them vigorously if you feel that the charges are unreasonable. Ask for reversal of charges.

If you are not satisfied, inform the bank that you would be complaining to the Banking Ombudsman.  The Banking Ombudsman authority was created to enable resolution of complaints of customers of banks relating to certain services rendered by the banks. The good thing is that most banks specially the private and foreign banks would like to avoid encounters with the Banking Ombudsman.

The mere mention of the Banking Ombudsman has worked for me and sure should work for all of us. 


2.  Relationship Managers


Run away from the Relationship Managers who come selling financial products which will make you rich.
While buying from the vast majority of Relationship Managers remember that they have monthly and quarterly sales targets tom meet. They are selling financial products not to make you rich but make themselves rich. You help them meet their sales targets so that they can earn commissions and bonuses. Buy financial products only if you need them and not because someone from the bank is selling it to you.

I cant but help remember relationship manager in a foreign bank who in 2009 told me that buying ULIP's would solve all my personal finance issues.