A reader wanted the HDFC penalty to be shared on my blog. While there’s nothing illegal with the charge and Banks are at liberty to charge this, it’s important to be aware of these things.
Moreover, if you happen to know the right guys and/or are able to make the right noise, I’ve seen that some of these charges can be waived. I especially have seen the waivers happening in case of prepayment charges which your loan company charges for paying early.
The reader writes:
Note: “As per the Terms & Conditions of Fixed Deposit Accounts of the bank, the penalty on premature closure of Fixed Deposits including sweep-in and partial closures has been fixed by the Bank at the rate of 1%.” This will be applicable with effect from 24th January 2011.”
Does this not sound a little weired and trust breaking. Probably bank does not want to increase the interest rate and at the same time do not want the fund to flow out hence, made a new rule starting Jan 24, 2011 and not even bothered to advertise this.
As I said, it’s normal for Banks to raise charges to keep their profit margin up and healthy. In India, it’s normal to consider the interests of the shareholders first and consider the interest of the customers last.
But things are changing. You are becoming more aware of your rights and responsibilities. You need to raise your voice. Raise your voice so that you become a priority for your Bank/Financial Institution.
After all, they need you as much as you need them.