You probably don’t think much about your bank. That is, till you need it or the bank does something wrong. Considering they hold such a critical resource of yours, namely money, choosing the right bank is important.
Here are the top 4 factors you should consider when deciding your bank.
#1. Is the bank a one stop solution?
The biggest inconvenience when it comes to financial matters is the sheer volume of paperwork you have to deal with for every need, be it loans or credit cards.
If a bank provides every possible financial solution you might need, and these solutions are competitive, then you save a lot of time when you need to avail any service which is not already available as part of your savings account.
Larger banks normally offer such end to end solutions including the ability to explore investment options such as opening PPF accounts. So if you want the convenience of less paperwork and hassle, choosing a bank that can offer most major financial services will help.
#2. How convenient is it reaching the bank?
Convenience in terms of how easy it is to get in touch with your bank and actually reaching them physically, is important as eventually for some or the other work you will actually have to go to the bank. A bank that is too difficult to reach can be a problem.
A workaround is that some banks allow you to use any branch to submit documents or transact. This facility should be a key factor in your decision.
#3. Is the bank up to date in terms of the technology based solutions it offers you?
For a growing majority, internet banking as well as mobile banking is fast becoming a necessity rather than just being a convenience. If you intend to transact a lot online, then e-banking facilities are a must.
Ease of use along with reliability of online banking services whether through the web or through a mobile application is something you should look at closely.
Another aspect of technology that considerably aids convenience is whether the bank offers core banking facilities. Core banking will result in quicker turnarounds on transactions and less waiting for cheques to clear.
#4. A private bank or a public sector bank?
In India, you have two choices when it comes to banks. You can either choose a private sector bank or public sector bank (PSB). For you, the consumer, the difference is largely in terms of affordability of services as well as quality.
Public sector banks often have lower minimum balance requirements than their private sector peers. The range of services is similar, though in terms of technology and quality of e-banking services, private sector banks are arguably better. PSBs, though, are fast catching up in this domain and offering competitive online solutions.