HDFC Downgrade from Preferred to Standard.

[its_karan]

A little help is needed, friends.
I have four savings accounts under family banking with HDFC so 40k is struck, currently all in Preferred, each maintaining a balance of 10k with no extra funds, as all my money is invested in mutual funds.

Although I used to be a preferred customer, the bank recently sent me a mail notifying that they will downgrade all my accounts. I assume it to a standard category.

Right now no charges were being deducted as all accounts were Preferred category customer.

Now, they will downgrade so I have some Qs.

Purpose: Want to pay minimum to maintain these accounts in charges. I don't need anything from the Bank but hate unnecessary charges. Will be keeping 10k in each account.

1. What all charges will start applying after downgrade to Standard Account, other than Insta Alerts and AMB non-fulfilment, i'll close the account which is not essential?
2. If I opt for the popular EasyShop Visa Platinum Debit card or Millenia Debit card now, should I issue it now as the charges are reversed from Preferred Category and save the the annual fee, which is around 850/600 something for 1 year, or will they charge no matter what? Right now have a Easyshop Rupay card(The 200 one).

 

[CardSeeker]

No Charges For Downgrading the programme

 

[SSV]

If I opt for the popular EasyShop Visa Platinum Debit card, should I issue it now as the charges are reversed from Preferred Category and save the the annual fee, which is around 850 something for 1 year, or will they charge no matter what? Right now have a Easyshop Rupay card(The 200 one).

Platinum DC will be chargeable unless it is Savings Max account type for a non HNI program account..

 

[Bugs Bunny]

Wtf? I got the same email. I thought my BM did it deliberately as I had some altercation with him.

 

[Bugs Bunny]

I think they are doing this looking at ICICI.

This indirectly gave me another benefit of having ulip, with 0 mab, I can maintain my imperia

I got mail from icici too but my account isn't downgraded. @S S V in case hdfc downgrades the account what should be the recourse? I'm not at all having money to maintain for their banking programs and thirdly how come ULIP got you imperia?

 

[SSV]

case hdfc downgrades the account what should be the recourse? I'm not at all having money to maintain for their banking programs

Just downgrade / upgrade to savings max and keep 25k, you will be fine

 

[Bugs Bunny]

With ULIP as surrogate, I got
1) Infinia Metal ( soon to be LTF) and
2) Imperia program

Interesting. You've got maximum from your ULIP. Commendable

 

[Bugs Bunny]

Just downgrade / upgrade to as savings max and keep 25k, you will be fine

I see. Hope they won't downgrade. Fingers crossed.

 

[Bugs Bunny]

Thank you ..
as my fund is doing well because of market, I have already recovered 1/3 of HDFC fee on my first ulip..

If I list down all the benefits compared to the opportunity costs, I will be way way ahead of getting the Infinia in traditional way

Hope this reaches more people and they realise ULIP isn't that bad if you can procure these benefits.

 

[cryoengine]

If you already got the hdfc cc you want, then their premium accounts are worthless compared to 25k mab. I am also a preferred customer but no downgrade warning email yet.

 

[SSV]

If you already got the hdfc cc you want, then their premium accounts are worthless compared to 25k mab. I am also a preferred customer but no downgrade warning email yet.

This is correct

 

[Bugs Bunny]

See the thing is , we have to do apple to apple comparison to see this benefit..

1) ULIP is really a bad choice if we compare this to some other form for Investment choice

2) ULIP is great when we want to reap the benefits of cc spending via hdfc Infinia from the word go when compared to a typical and traditional way of getting the Infinia

People running behind infinia should definitely explore the latter option

 

[its_karan]

@SSV
Thanks for the response

Just downgrade / upgrade to as savings max and keep 25k, you will be fine

1. What advantage does a Savings Max has over normal Standard account in terms of charges other than Non-maintenance of AMB and instalerts.
2. Suppose I take the Millenia Debit card now and make them reverse the charges as currently Preferred. Will they impose it back once it is downgraded or will they check 1 year from today to levy it.

 

[Bugs Bunny]

The sooner the better this option from age perspective.
Say if someone is mid to late 20’s , they take this option , benefits are multi fold
1) all their cc spends on the word go are on infinia
2) they can have hni program from very early age
3) they can keep ulip for the full term 25 years and have very good returns, that too all of it tax free

Excellent learnings as usual, sir

 

[SSV]

What advantage does a Savings Max has over normal Standard account in terms of charges other than Non-maintenance of AMB and instalerts.

Mainly DCs like Plat DC are free.

Suppose I take the Millenia Debit card now and make them reverse the charges as currently Preferred. Will they impose it back once it is downgraded or will they check 1 year from today to levy it.

It depends on when they charge DC fee ( year beginnig or year end) ..
I think HDFC charges DC fee at the commencement of the year. Going by this logic, you will be charged for your Millenia DC as soon as you lose HNI program status.

 

[shashankrt]

Hope this reaches more people and they realise ULIP isn't that bad if you can procure these benefits.

Please avoid spreading mis information. ULIP is a bad investment. Period. Compare returns from ULIP with any Index linked Mutual funds (the safest type of funds as they directly follow the index) and you will know. Dont base your opinion on absolute returns as they mean nothing for comparison.

 

[varun__goel_]

I have also recd the same for Classic🙂

 

[shashankrt]

The sooner the better from age perspective.
Say if someone is mid to late 20’s , they take this option , benefits are multi fold
1) all their cc spends on the word go are on infinia
2) they can have hni program from very early age
3) they can keep ulip for the full term 25 years and have very good returns, that too all of it tax free

Depends on how much investment in ULIP is required. If its 10k or 20k then its ok - else its a waste as compounding effect over 25 years will give much better returns than all combined savings done on infinia.

 

[Bugs Bunny]

Please avoid spreading mis information. ULIP is a bad investment. Period. Compare returns from ULIP with any Index linked Mutual funds (the safest type of funds as they directly follow the index) and you will know. Dont base your opinion on absolute returns as they mean nothing for comparison.

Mis information what ? Seeing benefits @S S V received it is definitely good investment provided you are following the same route.

 

[SSV]

Depends on how much investment in ULIP is required. If its 10k or 20k then its ok - else its a waste as compounding effect over 25 years will give much better returns than all combined savings done on infinia.

The savings depends on how much your going to spend on Infinia as well ..
Its not one dimesnional , a multi dimensional ..