Are you still living in the 70s or 80s thinking SBI is the safest bank and still have an account in SBI? Or are you living in 2010-20 generation thinking HDFC and ICICI are the safest? There is no need to read further if your answer to the first question is Yes as I don’t expect you to change. However, if your answer to the second question is Yes, then this article may be useful for you.
How safe is your bank?
Refer the FAQ from RBI. https://m.rbi.org.in/Scripts/FAQView.aspx?Id=64
Even if you put 100/- or 1lakh or even 1Crore in a bank account, your money is insured only up to 5 lakhs as of today. So if the bank closes down irrespective of it being SBI or some small private bank you get your deposits back up to a maximum of 5lakhs only.
Recently one of the largest private Bank, Yes Bank was taken over by RBI and handed over to SBI. Thank God it wasn’t closed down. Had it been closed the depositors with deposits more than 5lakhs would have been at loss. Does it mean SBI can’t fail? No one can guarantee. But if it ever fails you will get a maximum of 5lakhs.
So why not look at better options like Banks giving more interest rates and features as your deposits are already guaranteed up to 5lakhs. Currently, the Interest rates have fallen to the lowest at around 2.5-3%. Also during Corona pandemic, the service quality was lowest even with the best banks. I had a privilege bank account with ICICI but the customer service was the most affected during the pandemic.
Better Options
I am writing about 2 banks that I had a great experience and offers awesome features.
IndusInd Bank
Owned by Hinduja group it is one of the best new-generation banks that I have an account with. It offers high returns on S/B account compared to other Banks. The best feature is that you get your phone number or any other number as your Bank account number and it can be opened completely online.
I want to speak mainly about their Exclusive Account which I use for my day to day transactions.
- The minimum balance requirement is 1lakh which provides you with a Signature Debit card with 0% fcy charges and loads of benefits.
- Thanks to Exclusive debit cards, I watch movies only in premium Red carpet or Recliners.
- Above all, you get a dedicated relationship manager and video banking services. Video Banking feature is my favourite as I can directly video call the customer service team. They are highly knowledgeable and much professional compared to any other banks customer care executives that I have spoken to.
- 2years of my experience with IndusInd bank and I never had to visit any branch. All services are free and delivered at my doorsteps. Even cash was delivered at my home by the bank and it’s completely free. No charges are applicable.
- The Customer Care wait time for Exclusive customers is very low as there is no usual IVR.
- Interest rates for amount below 1lakh is 4% and above that is 5% in normal Saving Bank Account.
IDFC First Bank
Here I would recommend opening Bank account via Niyo which is a fintech startup and provides banking services via IDFC First Bank. The app you need to install is Niyo, however, the bank account is maintained by IDFC First Bank. The minimum balance requirement here is 10,000/- as per Niyo’s requirements. However, you get 7% interest on S/B account for any balance below 1 Crore which is currently the highest. You get a free debit card which can be used all over the world in any currency without any charges. You don’t need to worry about carrying a travel card anymore. Their customer support is awesome and account opening and all are very fast.
I would highly recommend their services.
Still Hesitant?
Are you still hesitant to open the bank account with them? Well, let me give you one really good reason to convince you. Emergency Funds. Emergency funds are to be kept aside for any emergency needs in a liquid instrument. If they are offering a 5-7% interest in normal Savings Bank account. Do you still think you will get a better place to keep your emergency funds?
So switch to above-mentioned bank accounts and enjoy higher interest rates. Also, let me know in comments if you find a better bank offering higher returns and better customer service. Lastly, as I would always say never keep more than 5lakhs in any bank be it the above-mentioned banks or even the giants like that of SBI or HDFC.
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