5 tips on banking

Wednesday, 27 May 2015 00:00 - - {{hitsCtrl.values.hits}}

Personal Savings Accounts Types of Savings Accounts

Today banks offer a variety of Savings Accounts. The features, benefits, rate of interest, the basis of calculation of interest are some of the factors that customers should carefully study before deciding on which type of savings account is most suited for their needs.

Opening an Account

To open a savings account banks will require their mandate form duly completed, specimen signature card with a clear specimen of your signature, personal information form duly completed in order to meet the ‘Know Your Customer’ regulations imposed by the Central Bank of Sri Lanka and documentary proof of your address in the form of a utility bill or other document.

In addition you will be required to produce your National Identity Card with a photocopy thereof. If the account is to be opened jointly with another person or more persons, then the details of each person together with instructions as to whether the account is to be operated by any one of the account holders or jointly by all account holders must be given to the bank.

Depositing Cheques

Deposit of cheques to savings accounts is not allowed unless special arrangements are made or the cheque is issued in favour of your bank and branch for your account. For example; the Payee of the cheque should read as follows:

‘ABC Bank, CDE Branch for the credit of F.A.G. Silva account no. 1234 5678 9000’.

Deposit and Withdrawal of Cash

Cash deposits which are considered normal depending on your profile is freely allowed. However, any large cash deposit needs to be substantiated with the source of funds along with documentary proof thereof, if requested by the bank. Cash withdrawals can be made by the customer calling over at the bank or by using an ATM card. Cash withdrawals shall be only by the account holder and not by third parties and usually the Passbook must be produced.

Interest Payable

Customers are attracted by higher rates of interest advertised by banks. However, it must be noted that the basis of calculation of the interest is as important as the rate of interest payable. For example, the interest may be calculated on the balance in the account at the end of each day and credited at the end of each month or quarter, or the interest may be calculated on the minimum balance during the month and credited to the account at the end of the month or quarter. Therefore, the best offer needs to be evaluated.

(Please note that this is based on current practices and may vary from bank to bank)