Savings accounts have not had the name in being a high return earning investment option for the investor. Being amongst the very few rates in the country which are still regulated by Reserve Bank of India, these accounts earn the depositor an interest of only 4%.
Thus many a times, people who have huge amount of money parked in savings account feel that their funds are blocked that is they are not earning returns.
So is it beneficial at all to park money in the savings account? The answer is yes. Ample amount of money in the savings account makes a person eligible for privileged banking facilities of the bank.
Also if a person is found using the services of only one bank for all transactions, he can be considered eligible for privileged banking services of the lender.
Privileged banking facility is offered by a bank only to its crème clientele.
Benefits of Privileged banking
Personal relationship manager (RM): Privileged banking offers the customer with a personal relationship manager (RM) who looks after all savings as well as investment issues of the customer. All financial needs of the customer are looked after by the relationship manager.
Debit/Credit cards: A hoard of other features is associated with the range of services offered to the priority customers of banks. A wide range of debit as well as credit cards are given out to priority customers.
Credit cards are offered to customers with higher than normal credit limits. Mostly banks offer in built card insurance and also lost card liability cover to the privileged clientele.
ING Vysya Bank issues platinum cards to its priority customers. These cards offer a withdrawal limit of Rs 1 lakh instead of the normal Rs 25000. Along with that yearly cash back of 1% is offered to the customer on shopping transactions.