Pay Rs 500 to close your HDFC Bank savings account !
It could not get more ridiculous. Now HDFC Bank is going to charge Rs 500 to close your savings bank account. Also, if the average monthly balance falls below Rs 20,000 in nonurban centres, it will charge Rs 500 a month.
This comes at the back of deregulation of interest rates on deposits which started the interest rates war. Investors are jumping over to new banks as they are lured by high interest rates that banks have started offering. HDFC Bank hopes that the fine will be a deterrent to customers to leave them.
SBI charges Rs 150 if the account is closed after 6 months while Axis bank charges Rs 100 in case the closure happens within 6 months.
I personally think this is a bit unacceptable. Banks lower charges for one offering and instantly hike charges on another to maintain their profit loss statements. I hope other banks don’t implement this as well and HDFC Bank rolls it back.
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This is a clever ploy by banks to deter depositors from closing the savings bank account. Banks already charge high interest rates on loans while the savings rate they provide is miniscule and now adding fuel to fire they have come with this strategy of account closure charges. I think RBI must look into this and come up with some regulation to avoid this tactics employed by banks.
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LikeDislikeThis is not a good sign. It will make those banks who are losing customers in the de-regulation war to follow suit. And the customers end up in moving even with this and those who has to close at the end of the day will anyway close and the customer are in the lose-lose situation here!
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LikeDislikeI chanced upon this article just now and was surprised to know that we have to shell out bucks to close our own account!
Just now I had a quick call with my personal banker from HDFC and apparently she hasn’t received any communication regarding specifics of any changes. I also happened to visit HDFC Bank’s website and observed that they do have a note on their home page regarding change in charges effective 1st January 2012 for Savings and Current Accounts. The details of these upcoming changes are listed here:-
http://www.hdfcbank.com/personal/accounts/change-in-service-charges.htm
It seems the account closure charges are not applicable if the account is closed after 12 months.
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LikeDislike@Jaswinder Singh, Excellent information Jas, many thanks.
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LikeDislikeI have re-confirmed this from HDFC bank about these charges. Apparently, the account closure charges are applicable only if we close the account within 12 months – and no charges are applicable if the account is closed anytime after 12 months.
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LikeDislike@Jaswinder Singh, This is really good news for those having HDFC account for long period and looking to close it for some reason.
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LikeDislike@Jaswinder,
Thanks for the clarification, I am an HDFC customer since 90′s and satisfied with their services till date.
Rakesh
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LikeDislike@Rakesh, So which is better – ICICI Bank or HDFC Bank ?
Maybe I need to put out a poll for this ?
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LikeDislike@Radhey,
For me its got to be HDFC, I am biased because i am a customer as well as an investor since a very long time.
I do have an account with ICICI bank too but overall customer service wise i would prefer HDFC.
Rakesh
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LikeDislike@Rakesh, Not sure you have heard this or not but since Jan 1st, HDFC bank has come out with new charges.
Couriers that are not delivered will be charged Rs 50 per quarter ! In case of no customer initiated transactions, it will charge Rs 50 per quarter.
I don’t think its fair !
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LikeDislikeI do not agree with Rakesh..
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LikeDislike@MK Belim,
Can you share your experience with HDFC Bank?
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LikeDislikeRadhey,
That’s not fair at all, the banks should not levy these charges at all.
I know OBC charges for non-maintenance of account for every quarter.
Rakesh
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LikeDislikeSir, please update the post since it is clear that HDFC Bank is not doing anything wrong.I am an HDFC customer and experiencing their good services for savings acct,demat,mutual funds,securities for past few years.
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LikeDislike@sandeepks83, RBI has asked banks not to levy such charges. I am a HDFC customer as well and not happy with this decision.
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LikeDislike@Sandeepks83, Well, Seems the article title need to be changed to “Pay Rs 500 to close your HDFC Bank savings account if closing before 1 year”
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LikeDislike@Radhey Sharma, So what’s the final verdict? Are banks going to follow RBI instructions or they will keep on charging these ridiculous charges?
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LikeDislike@Vivek K, They will keep charging.
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