How to Make Money from Banks?
Today we are going to talk about how to make money from banks. Yes from your bank. If you have current account and you have money in that you can earn laces from your current account. Yes it is possible I am not cracking any joke.
Before telling you how to make money from your banks. We will talk about how to select your bank.
Steps to select a right bank
If your business is small you can select a bank which is close to your office or your house. But your business is big then your bank definitely close to your office. I totally agree with your thought that in today’s time everything is digitalized but still I suggest you to choose a bank near to your office or home. This is the first step to select a right bank.
Next step is which bank we should choose. Is it nationalised bank, private bank or international bank. There are lots of nationalise banks like SBI, Canara Bank, UCO bank, PNB, etc. Private banks are HDFC bank, ICICI bank, Kotak Mahindra Bank, Axis Bank, etc. And now International banks like HSBC bank, American Express, Citi Bank, Standard Chartered bank, etc.
Now let’s talk about which bank is correct for you to make money from banks.
First we talk about nationalised banks. There are lots of nationalised bank as we told earlier. Which bank is good in nationalised banks? SBI is a good option. Why? SBI is doing very well have many positive verticals. SBI has everything in house. Technically it is advanced in all nationalised banks. But still for small works like cash deposit or cash withdrawal, DD related services these types of work take too much time. Why? Because of less manpower.
One more benefit of nationalised banks are they have lots of branches. They have their branches in all cities, towns and villages.
Next is Canara bank it is also good. See you have to choose a bank which is upgrade itself digitally. As a owner you don’t have to go to bank of every single work. It is wastage of your time to go bank for every single work. In today’s time mobile banking is very safer and easier. If you are not using mobile banking then you are really wasting your time. Start form today.
But we all know nationalised banks are very poor in services. They were poor, they are poor and they will be poor in terms of services. The drawback of SBI is they have very less manpower. If you want some work done manually in SBI it take lots of your time. But the question hits your mind can we make money from SBI bank. So answer is no you can’t make lakhs from SBI bank.
Secondly about private banks. As we already told you leading private banks. So in terms of technology private banks upgrade their systems very well. In nationalised banks till the time cash deposit, passbook entries, cash withdrawal is too much. But in private banks, there is no passbook system.
Now if we talk about international banks. They always work with elite class only. If you have export-import business. You have more international business then only choose an international bank. International banks have highly qualified staffs. Technically are much upgraded. You don’t need to go to bank. Their response time is very quick.
How do banks earn?
First you have to know how do bank earns. Whatever money you deposit to your bank they will give you interests up to 7%. How they will give you these interests. Banks give money on interest on other banks, institutions at higher rate of interest where they are take 8%, 11% or 14%.
Second they earn from your withdrawal. And whenever you deposit cash to banks. Mobile services, statement, cheque leafs, etc. many other services are chargeable in banks. Read terms and conditions before opening an account.
Third they earn from stock exchange. Whenever you invest in shares from your bank they charge their commission. See their commission before invest in stock exchanges. Check all banks commission rates first.
Now we are talking about how to make money from banks. How you can multiply your money.
You gave to get maximum interest on money in your bank account. Whenever you are going to take loan from bank make sure you pay minimum interest on that. Car loan, home loan they are the most secured loans so you can take these loans on 8.50%. Always negotiate with your banks about you loan interests. Yes all the banks negotiate about interests of loans.
Now we all know all nationalised and private banks give you annual interest on your saving bank account money.
How to make money from banks?
If you have current account and have money in that account is above 50,000 then you only two banks in India who offer auto sweep facility. Now you are thinking what auto sweep is.
What is Auto Sweep?
Auto sweep is whenever you have money above then INR 50,000 in your current account it is automatically convert in a FD. We all know about FD (fixed deposit). If we want to do any FD in our bank we have to go to bank and sign documents. But in auto sweep you don’t have to go anywhere and no need to sign any papers your money automatically converts into auto sweep.
It is an automatic service. Whenever you withdraw your money or transfer money from one bank to other it is automatically comes out from FD to your account. And when you deposit any money it converts in FD. You will get FD interest on your money. Example your money in FD for 30 days it will give you 30 days interest of FD.
So if you have already a current account go check with your bank about auto sweep service and you are going to open a current account then make sure your bank has auto sweep service. A bank that offer auto sweep service is Kotak Mahindra bank you can check in any kotak Mahindra branch about this service and start multiplying your money. Happy earnings.
I hope this article is help you to make money from your bank. Looking forward to your views on that. If you want to grow your business online and want to learn how to make website you can read our other blog. Thanks