Best is to use credit card from a bank where you dont own an account. Else your deposit will do the vanishing trick with all the renewals, late payment charges, surcharges & levies
It's a smart way to lure customers' into getting their hard earned money eroded steadily by bank. We usually have FDs for future security; exceptional or emergency expense or simply as retirement corpus. However as i had experience, its really hard to get your FD encashed if you have a credit card. Firstly you will have to clear all your outstanding against card then close the card and then have your FD amt back. Kinda hassle. Credit cards are usually notorious in tempting one to spend more than required so betting avoid this trap at all cost! Never mix investments(FD) with expenses(Cards)
Why would a customer go for an option of credit if he has fixed deposits....many customers are using credit cards as there is a repayment time of 45 days and very useful for salaried people as they have liabilities in terms of emi's and household expenditure but less money available at the banks..the business is done on trust and relationship is made after verifying the obligation and intention and of course stability........why credit cards on FD's ?
that are opened against FDs offer a nominal interest (If I remember right - it is about 1.5%). That will be the best option for anyone to spend against a FD. Credit cards are inherently risky and you are prone for a debt trap.
Is there any bank that encourages SAVING. The whole idea is to force the F/D holder to spent upto 90% and take him for a ride till he becomes bancarupt. What an idea to screw depositors? Please do not fall in this trap as it will wipe out your hard earned saving( unless it is with any SWISS BANK)Looting has a diffrent name and method now - via the bankers. Sivaproactive
Re: Re: Credit cards
by nand lal on Sep 14, 2009 01:55 PM
I agree with your opinion. No banks are charitable. Their primary motive is to multiply their bussiness and the profit. They invent new ideas and modalities to trap the innocent people. Falling in their traps should be avoided at any cost and means. Any way borrowing for non-capital formation purposes is very bad and need to be not reosorted to.
Re: Re: Re: Credit cards
by Jay Singh on Sep 14, 2009 02:00 PM
These cards are good for senior citizen & Women who otherwise will not get any credit card.
If you want a credit card, book a FD & take it.
Banks also insure your outstanding wioth insurance company. Only incase of willful deliberate default, will the bank break your FD.
Please know facts before you make a generalistic statement.
Re: Re: Re: Re: Credit cards
by Atul Neogi on Sep 14, 2009 02:06 PM
I am yet to find a Sr Citizen "Needing" a credit card. Sr Citizens watch their money like hawkes and will bring you to court for matter of 1000 - 5000 Rupees (Thanks to their friends whose sons are lawyers)
Re: Re: Re: Credit cards
by Atul Neogi on Sep 14, 2009 02:03 PM
Banks use your money to make money for themselves with the services offered can best be termed as a Glorified account keeper. What else can you expect from them. This they have to accomodate reservations in promotions, special enforcement laws among their backward caste, strikes etc. Thus, staying alive and making 30 percent profit with all the constraints mentioned, in itself will merit a Padma shree award.
Re: Credit cards
by Shripad Jathar on Sep 14, 2009 02:20 PM
Honestly the best is not to use any credit card. Spend when you have "CASH" in your hand. OR USE DEBIT CARD so you do not have to carry big amount in your pocket.
