What banks offer at the retail level: A write-up on a few banks in Bangalore; Hongkong Bank, Bangalore

Abstract

Regarding Hongkong Bank itself, the products are similar to those offered by other banks but the initial deposit is rather high. However, what differentiates it from other banks is the Smart Money Account (SMA). For a minimum deposit of Rs.20,000, one earns interest as one would on a fixed deposit and the account holder can also withdraw up to 75 % of the deposit amount by paying 2.5 % more interest than what he is earning. The minimum period of deposit is one year and additions to the initial deposit can be made with a minimum of Rs.10,000. The customer also gets a cheque book and an ATM card which means he is earning the high interest rate of a fixed deposit and also getting the flexibility of a savings account. “ATM cards allow withdrawals of Rs.3,000 every 24 hours any time of the day from a Hongkong Bank ATM in India. Moreover, customers can use ATMs to make deposits, transfer funds from one account to another, post letters to the Bank and ask for statements regarding their respective deposits.