Today we are discussing some of the less known facilities offered by banks to there customers. Knowing these facilities can help you during some urgency like you want your Cheque gets credit in your bank account immediately or you want to withdraw more then the available balance from your saving bank account. So lets have a look at some less known facilities available to you as a bank customer.
Cheque Purchase Facility
Suppose, you have an account with ICICI bank and you receive a Cheque drawn in your name but of some other bank (say AXIS bank) . Then what will you do with the Cheque? Normal procedure, you will go to the ICICI bank , give the Cheque for clearing , the person on the counter tells you that amount will be credited to your account in 2 days. Now,
what if you want the money urgently and immediately? Can you get it?
The answer is YES, This is called CHEQUE PURCHASE. If the bank Manager knows you and trusts you , then at his own risk , he will purchase the Cheque(debiting the bank’s miscellaneous account) and crediting the money to your account instantly! However, you will not get full amount , some commission charges will be deducted and the balance credited to your saving bank account.
Overdraft On Saving Bank Account
Suppose you go to your bank to withdraw money via cheque (say Rs 1000), however, you realize that you have only Rs 800 in your account but you need Rs 1000 instantly.
What will you do?
Very few people are aware that we can avail OD (Over draft, temporary loan) on our Saving Bank accounts too! if the bank Manager knows you and trusts you , then at his own risk he can give you OD of Rs 200 (max limit is Rs 5000 generally) which you need to pay back by next day. However, please be aware that extra 2% interest will be charged on this Rs 200 (i.e 2% on Rs 200).
Free Withdrawals From Savings Account Are Limited
Don’t get mistaken that you have a Saving Bank account, so you can withdraw any number of times from your Saving Bank account! Normally, only 50 debit transactions per 6 months are FREE , after
that charges apply!
20% TDS In Absence Of PAN Number
Always give your PAN number with Saving Bank or Fixed Deposit account , Else if interest exceeds Rs 10000 tax deducted is 20% instead of Normal 10% charged, In case you don’t have a PAN card give Form 60.
Opening Multiple Saving Account Won’t Help You Evade Tax
Thinking of being Smart and evading TAX man! I have seen some people keeping multiple
Saving Bank accounts and transferring money to various Saving Bank accounts so that interest never exceeds Rs 10000. But banks are smarter than you think! Every account has a Customer ID, So if you open multiple Saving accounts, Bank will link the same Customer Id to different Saving accounts, and TDS is added for all these accounts! So , be careful.
This is a guest article written by Shankar Ramaswamy. He is working for a leading public sector bank as a credit and Risk Analyst.