Factors to Consider While Choosing an Ideal Indian Bank to Open a Corporate Account
Banks exist to secure whatever we want to keep safe from any untoward circumstances – manmade or otherwise. The practice of putting whatever we want to save in the banks dates back shortly after our forefathers introduced the use of currency as a legal tender in buying, paying or receiving payment from a transaction or in remuneration for a service rendered.
It is important to know that bankers are businesspeople too. And the fact that they’re keeping our money safe, they also get some benefits from it.
Banks get to depositor’s wealth in many lawful ways to increase revenue for themselves. Thus, depositors also get interest from the money they put in such financial institutions. In this article, we look at the factors to consider while choosing an ideal Indian bank.
Evolution and Influx of Banks in India
Looking back to the time when the economy of India was struggling for survival, banking in one of the most populated countries in the world was not as enticing as it is today.
However, things have changed. Banking has undergone a drastic transformation, prompting individuals and business entities to start transacting, saving and borrowing from what is now considered ideal Indian banks.
Those who were not accustomed to banking secure bank accounts and avail banking services unbanked are getting banking services, through the government’s financial inclusion program. The program has opened banks to Indian nationals wanting to avail affordable access to financial services.
This government-instituted program is referred to in India as ‘Jan Dhan Yojana’.
At the onset of the world-wide-web, or simply the internet, the financial inclusion program got better as with the digital revolution.
Consideration for Ideal Indian Banks
With the government of India ably instituting reforms and injecting a financial inclusion program enticing Indian nationals to seriously consider banking, a phenomenal surge of financial institutions saw many banks vying for a slice of the Indian market.
The influx of banks in India gave the local folks a wide range of choices for what could aptly be described as the most ideal bank in India.
While all banks are offering savings accounts, each of these financial institutions is distinct in the services they have for clients. Furthermore, their charges vary depending on their offering.
Choosing an ideal Indian bank looks easy. However, it’s not what many think it is. There are factors to consider when choosing an ideal Indian bank.
Factors While Choosing an Indian Bank
- Location is always among the top considerations. It is always best to put money in a bank near where you live or do business.
- Modern-day capability comes next. Banking today eliminates operating hours through the internet. There are however concerns among online banking clients wanting for a user-friendly technology. Another modern-day banking innovation is the automated teller machine or ATM which are serving 24-hours and day, seven days a week. Find a bank with an ATM booth near you.
- Maintaining Balance is one of the major concerns of clients. In India, banks impose on an Average Balance Requirement, depending on the type of bank account. This condition should be checked even before you get to open a bank account. For those whose only purpose for opening a bank account is to save, it is best to consider opening ‘Basic Savings Bank Deposit Account,’ which does not offer other services than safekeeping. Interestingly Indian banks vary in minimum balance requirements.
- Applications, or apps for brevity, allow banking through hand-held gadgets like android phones and tablets. It would be best for bank clients to consider a bank embarking on a user-friendly app for receiving, fund transfers and bills payment.
- All banks in India give interest rates for money deposited to their bank. The same principle applies to loans, which many Indian banks offer. These banks charge a variation of interest charges. On average, these banks impose on a 4% interest for loans.
- Branch Availability is a top concern for business entities in choosing the ideal Indian bank where they intend to keep their funds. For many businessmen, the more bank branches, the better for their diversified economic activities.
- Services and product fees also vary depending on the bank. Private Banks offer better services but charges comparatively higher than the public sector banks.
How to Choose the Ideal Indian Bank
Numbers do matter in choosing the ideal Indian bank that suits the requirement of a depositor.
- Depositors after pure safekeeping of their money choose a bank that offers higher yields. Bank Clients who are availing of loans and services offered by a bank would certainly look for lower interest rates.
- It is imperative to do some research and comparison of the figures stipulated in the bank pre-transaction documents.
- For checking accounts, it is important to pick a bank offering multiple types of checking accounts or high-yielding one. Consider looking for banks that charge less for this type of bank account.
- Most entrepreneurs however would prefer money market accounts — hybrid accounts with check-writing privileges. However, this type of account may only be good for limited transactions every month. Adding on to that, not all banks are offering this type of account.
- Watch out for monthly maintenance fees, ATM fees and the cost of overdrawing a checking account. Choose a bank that puts a cap on drawing fees. Overdrawing of cheques usually results in paying seven times more in fees than those who don’t. For those who resort to overdrawing checks for valid purposes, you may find a bank offering lenient overdraft policies.
Over 100 Banks in India
With over one hundred financial institutions operating a network of banks in India, selecting the most ideal Indian bank certainly requires some work.
For serious entrepreneurs wanting to open a bank account for their business in India, it is most logical to tap the services of an established business provider with topnotch capability on corporate bank opening in India.
On this premise, the most logical choice to get things done for your need to pick on the most ideal Indian bank for your business would be 3E Accounting India, a business advisor banking on excellence, efficiency and economy.
For more information, please contact us.