Banking services: The privileged league
By Vishesh Sharma |
9/12/2011 5:11 PM Monday
Privilege Banking: The Ivy League
Savings accounts have never been high return earners. Interest rates on savings bank deposits are among the very few rates in the country, which are still regulated by Reserve Bank of India. These accounts earn depositors an interest of only four per cent. Thus, people who have a huge amount of money parked in savings bank accounts often feel that their funds are blocked. Is it beneficial to park money in these accounts at all? Well, the answer is ‘Yes’. That’s because having a decent amount of money in a savings bank account makes you eligible to enjoy the bank’s privilege facilities.
Privilege banking is something that many people are vaguely aware of. However, I’m not sure if too many of them are aware of the benefits and services that are available under it. This is because people do not bother to inquire about the services that banks offer to their loyal clients, who have been with them for a long time for all kinds of transactions.
Benefits That You Can Get
So what do you gain from being a privileged customer of a bank? Besides getting all perks and services at discounted rates, privileged customers of a bank also get a designated relationship manager to deal with their routine issues.
Privileged customers are usually chosen from the bank’s existing base of customers. Services offered to them may include personalised bankers, quicker transactions, special pricing on financial products and exclusive offers. Privilege banking is primarily meant to offer a hassle-free, prioritised banking experience to loyal customers of the bank.
With privilege banking services, you are also entitled to membership of exclusive clubs of banks. As a member, you enjoy upgraded services and offers each time you make any transaction. As a privileged customer, you are typically offered a dedicated relationship officer, who will be your one-point contact for all your banking needs. In addition to this, you may be offered a dedicated area, or sometimes even an exclusive branch of your choice to take care of your financial needs, irrespective of which branch you have your account in. Several banks offer exclusive debit and credit cards, with higher withdrawal and shopping limits.
If you are a part of a privilege club, you are also eligible for higher loans than regular customers. Many clubs offer you premium tickets to sporting events and entertainment shows, pampering you to the hilt on every count. Of course, this is just an overview of the benefits you get.
Harsh Khurana, who uses HDFC Bank for all his banking needs, has this to say, “Since I turned 18, I have been making all transactions through HDFC. Now, the bank calls me as and when they launch any new schemes. Besides, when the RBI raised interest rates, I got a housing loan from my bank at comparatively low rates. I must say, loyalty always pays.”
However, keep in mind that these are not standard benefits and may differ from bank to bank. Each bank may offer some of a whole range of facilities. Having said so, it is true that you are set to gain a lot once you join the exclusive client list of your bank. Listed below are the facilities which you may be able to avail yourself of, once you join the ‘elite league’:
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