THE next time that you decide to choose a bank on the basis of its superb offerings and its customer service orientation, don't forget to ask them for their service charges list. That's gathering length and width every year.
Banks are demanding ever larger deposits and levying service charges on increasing transactions. To open an account with Citibank, you need to deposit at least Rs 3 lakh (family accounts combined). And to be on the 'priority' list, your minimum deposit must be Rs 30 lakh. At Grindlays, a deposit of Rs 7.5 lakh gets you into the Captain Grindlays Club. At Hongkong Bank, the deposit floor is rather lower at Rs 5 lakh, but then again, so are the number of facilities and services you get.
In case of routine savings, current and fixed deposit accounts, the minimum average quarterly balance for all private banks is Rs 5,000. If ever you go below, you pay a penalty of Rs 100-150. For a current account, the minimum balance is Rs 25,000 for most banks, with a penalty of Rs 300-450 for breach of level. Interestingly, these stipulations may be waived if you happen to have a minimum amount lying in fixed deposit with the banks.
Meeting demands which the bank may consider non-routine also comes at a price. Statements of accounts are given to you once every quarter if you have a savings account or every month if you have a current account. In case you want statements more frequently, prepare to pay Rs 200 to Rs 1,000 per year. Closing an account within six months of its opening carries a penalty. Duplicate statements too come at a fee. So do special facilities. Instant inter-city remittances come for a service levy of 2 to 5 per cent. While writing out cheques and receiving them, be careful. Banks will charge you not only for collection, but also for issuing and depositing a bad cheque.
