Bank Account is the next urgent requirement for the business. We need to put in money and… well – spend it 🙂
So, these are the times of comparing the current accounts being offered by different banks. To begin with, here are the options various banks provide
- SBI – There are four options for minimum balances ranging from Rs 1000 to Rs. 500,000.
- Axis Bank – Five options for minimum balances ranging from Rs. 10,000 To Rs. 1,00,000. There are separate options for NGOs/Trusts, Banks and Government Organizations – none of which is applicable to us.
- ICICI – 6 options for minimum balances ranging from Rs. 10,000 to Rs. 500,000
- Citibank (The link is a pdf file) – Could not find the details of different types of accounts elsewhere, but in the linked pdf file, which is “Schedule of Charges”, they have mentioned three types of accounts for the minimum balances of Less than 100,000, from 100,000-1,500,000 and Above 1,500,000
- HSBC – Effective March 2008, HSBC has two types of account with minimum balances to Rs. 100,000 and Rs. 1,000,000. For some reason, they are discontinuing their earlier current account, which had the minimum balance of Rs. 25,000
To be honest, at this stage we are not even sure of what our requirements from a current account are. My only experiences are with personal savings account in which ICICI and Citibank have fared well, while SBI has been a total disappointment. Same has been the case with Abhaya. But these three are the banks we are most familiar with. So, we started off by considering them. However, two of our acquaintances warned us against ICICI. So, we dropped the idea. I left my contact at Citibank’s website and their representative even contacted me. But he did not turn up for his appointment. When I called him up, he said he had called me up to confirm, but I did not pick up. I hadn’t missed any calls that day. Anyway, I gave him another time and he neither called, nor turned up. I decided to drop it at that. Axis Bank came into picture when a friend told me that he is shifting his current account to Axis Bank from ING Vysya and the experience till now has been pretty good. I have left my contact at their website just now. Let’s see, how that turns out. HSBC came into picture, when I got a call from their representative. He also missed his appointment, but promptly called later in the day apologizing that he missed due to an important internal meeting. He agreed to come immediately when I told him I could still meet him and honoured his appointment. I have the forms with me now and I am supposed to call him back after I have all the documents. But the fact that there is no option for an account with minimum balance requirement below 100,000 makes me a little nervous right now. If expenses go exactly as planned, we should be fine, but who has ever seen expenses going just as planned! Ideal situation would be to start with an account with lower minimum balance requirements and upgrade later, if it suits us. After a while we’d be more clear about our requirements too. We have no idea as to what all to look for in a current account. One friend has recommended SBI over private banks, but after my nightmarish experience with savings account, I am very hesitant. Another friend dismissed the option as they are “too sarkari”. If the Axis Bank thing goes smoothly, they may be a good option. But of course, no other bank can give us the kind of reach SBI could. And given the nature of our business, that may be important in future. But we’d figure that out with time.
If you have a recommendation, do let us know. Or any advice in terms of what features to look for in the accounts.
Meanwhile, I have arranged for a part time job for some cash to keep coming in – so that my bills get paid and I don’t deplete the limited capital we have on my expenses.