Banking services: The privileged league

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.

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’:[PAGE BREAK]

Debit/Credit Cards: A wide range of debit and credit cards are given out to priority customers. Credit cards with higher-than-normal credit limits are offered to customers. Most banks also offer inbuilt card insurance, as well as lost card liability cover to their privileged clientele.

For instance, 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. In addition to this, a yearly cash back of one per cent is offered to the customer on shopping transactions.

Similarly, Axis Bank offers its priority customers a Platinum card, along with insurance cover worth Rs 5 lakh. Dhanlaxmi Bank offers an add-on cards facility. Some banks, such as Standard Chartered Bank, allow free ATM cash withdrawals for travels abroad.

Loans: Priority customers often get preferential rates while taking loans from banks; the increased creditworthiness of the customer is the reason for this.

Doorstep Banking: Privileged customers can use the facility of doorstep banking, wherein the bank (personal relation-ship manager) walks up to the customer’s door, rather than the customer going to the bank for any transaction. Banks believe that this is a way to position the product better in the customer’s mind. The customer is able to make a connection with the product, and its effective delivery is facilitated.

Fees and Service Charges: Waivers are available on various kinds of fees and service charges for privileged customers of banks.

Lounge Access: Priority customers get access to premium lounges at all branches of the concerned bank. Some banks also offer access to premium lounges at airports, both domestic as well as international.

Banks have been going that extra mile to ensure convenience for their customers. An example of this is ICICI Bank, which offers exclusive benefits across a wide range of product and services to its preferred customers. The bank offers Gold and Titanium privilege banking account vari-ants, each designed to suit specific needs. In addition to benefits like money multiplier, nomination facility, internet banking and mobile banking, you can avail other special privileges like:

Normally, banks inform their clients when they meet the criteria, and tell them about the services and benefits they can enjoy. If your bank hasn’t done so, and you believe that you meet the minimum requirements for enjoying preferential services, you can approach the bank and get your service upgraded.

Once you become an elite customer, you will have to ensure that you stay one. If you fail to meet the minimum eligibility criteria for two consecutive quarters, your account will be downgraded and benefits will be scrapped. In such a case, the bank usually contacts the customer to ascertain whether he/she is likely to build up the balance in the next quarter. If the customer is unable to furnish details in this regard, the facilities are withdrawn.

J Pandiyan, General Manager (Planning), Vijaya Bank says, “V-Platinum Savings Bank Account (the privileged account) was introduced on the occasion of our Platinum Jubilee. The product was designed for the niche segment, with the intention of developing longstanding relationships. Its features need to be imparted as a competitive edge with the changing market scenario.” Pandiyan further adds that only individuals and HUFs are eligible to open the account under the scheme.