Personal Financial Services, Personal Banking Services

In a sphere of faster growing financial market activities, the personal financial services have become easier and faster. Both private sector as well as public sector banks and financial organizations have stepped forward in a direction to develop the process involved in personal financial services.

Mainly banks such as HDFC, Wachovia provide personal financial services. The services include the following:

Creating accounts and deposits
Advancement of loans
Promoting investment and insurance services
Providing forex and trade services
Providing payment services

Each of the above mentioned services can be discussed in detail under the following heads

Creating accounts and deposits: There are three kinds of accounts. They are the savings account, the current account and fixed deposits.
Savings account aim at encouraging savings for future purposes. Irrespective of the salary scale of a person, he may open a savings account in his name.

Current Account: These are not interest bearing accounts. Here the account holder can deposit and withdraw any amount of money at his disposal, as long as there is money in his account.

Fixed Deposits: Long-term investments are something, which is dreamt of by almost everyone. This is a good alternative to applying for loans. The account holder can borrow from his own account and also earn interest for the money deposited.

Loans: This is one of the most important personal financial services that are provided by banks. Personal loans are given for a variety of purposes in different banking institutions. They are given for the purchase of houses, two wheelers, new cars, used cars, overdraft against cars. Other loans are express loans, gold loan, and loans against securities and loans against property. Express loans are borrowing Rs 10,000 to 75,000 for any purpose. Gold loan facilitates the advancement of loans against gold jewelry and ornaments. Loans against securities like equity shares, mutual funds, LIC policies and other bonds are advanced. Loan against residential or commercial property can be obtained. There is choice between EMI based and commercial loans.

Cards: To increase financial liquidity banks have introduced credit, debit and prepaid cards.

Credit cards: Credit cards not only provide an unparalleled spending spree to the holder but provide other facilities also. One of them is the option of earning while spending. One can earn points for each expenditure met through the credit card and use them for future purchases.

Debit cards: Debit cards help in the instant access of the current account of the respective bank. It is like carrying the current account without the risks attached to carrying cash.

Prepaid cards: The prepaid account is designed to meet travel and gifting needs.

Investments and insurance: This is another important personal financial service that is provided by banks. It helps individuals to invest along profitable lines. Some of the investments that they encourage are discussed under the following heads:

Investment in Mutual funds:These are funds that attract the money of different investors to invest in equity or debit markets.

Investment in different insurance plans

For financial security of our loved ones investment in life insurance policies are essential. Insurance policies are also available for houses, cars etc.

Investment in bonds

This is the most secure investment path that gives stable returns accompanied with tax benefits.

To facilitate transactions in foreign exchange and remitting money banks provide traveler’s cheques, foreign currency cash, and foreign currency drafts, cheque deposits. Banks also help in remitting money through cheque box or telegraphic transfer.

Payment services: These services help to avoid queues and paper work. By the use of cards and debit cards also, payments can be made easy.