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).

 

[dvader]

Ulip selling & lic insurance linked with sum return
Was classic case to understand the bad impact of gov controlling things & people dependent on gov for jobs ..
Lic agent got kickback by looting own friend , family & near ones wrong plan which was never good ..

LIC made a butt load of money for the Government. It was like an indirect income tax for Indian middle class who weren't in the tax bracket. People bought LIC to save for their daughter's marriage.....education and what not. And there was always that one goddamm vampire in the family who would sit down for months to explain why your father should buy LIC to fund your higher education.

One saving grace is Indian women buying Gold over generations, and Damn that was the best invetment even if it was unintentional. My Grandmother couldn't write (though she could read a bit) and while my grandfather invested in LIC, she would only buy silver and gold with whatever surplus she ever had, married two of my aunts with it. The irony of how fked up our education system is.

Or may be.....we would have done the same thing in their shoes. hindsight is always 20/20

 

[amitr29]

ULIP and Endowment Plans pulled back an entire generation of Indian middle class. Things have changed in last 15 years and for the better, and anytime I see someone trying to bring up ULIP, I feel happy that the majority isn't buying the BS.

And mixing credit cards and investment (apart from some superficial rotation and I wouldn't even recommend that) is almost always a bad Idea. Save some money, get some cashback and discount, redeem those airmiles and live ur life.

Agree, I remember in 2008 Birla Sun Life plans having 65% first year charges and 40% in the second year. And bank channels were allowed to source only particular high commission policies. There were international trips and parties at 5 stars for achieving Insurance nos. All of this was paid from hard earned money of middle class. ULIP still rules and is a highest incentive product for RM's. Ideally ULIP has so low life cover part, that it should not be called a Insurance product.

If one invest 2 lacs into MF for 10 years and term plan premium of 30-35k/year, one gets 1 crore cover. In case of death one will get both MF maturity value plus1 CR death benefit. In ULIP one gets either fund value or death benefit.

People cry about devaluations, but they don't understand that ULIP for card is a bad idea. Credit cards can be devalued any day or there can be a better card offered by other Bank.

 

[dvader]

Agree, I remember in 2008 Birla Sun Life plans having 65% first year charges and 40% in the second year. And bank channels were allowed to source only particular high commission policies. There were international trips and parties at 5 stars for achieving Insurance nos. All of this was paid from hard earned money of middle class. Insurance still rules and is a highest incentive product for RM's. Ideally ULIP has so low life cover part, that it should not be called a Insurance product.

If one invest 2 lacs into MF for 10 years and term plan premium of 30-35k/year, one gets 1 crore cover. In case of death one will get both MF maturity value plus1 CR death benefit. In ULIP one gets either fund value or death benefit.

People cry about devaluations, but they don't understand that ULIP for card is a bad idea. Credit cards can be devalued any day or there can be a better card offered by other Bank.

On Point. I have always said, you wanna pay for cards, go for it. I paid 15k for pinnacle (with GV ofc). Get CCs like Amex Platinum and other paid cards but never let your financial well being be affected by something like a Credit Card. It's a financial product/tool, use it like one.

 

[lightwaves]

Agree, I remember in 2008 Birla Sun Life plans having 65% first year charges and 40% in the second year. And bank channels were allowed to source only particular high commission policies. There were international trips and parties at 5 stars for achieving Insurance nos. All of this was paid from hard earned money of middle class. ULIP still rules and is a highest incentive product for RM's. Ideally ULIP has so low life cover part, that it should not be called a Insurance product.

If one invest 2 lacs into MF for 10 years and term plan premium of 30-35k/year, one gets 1 crore cover. In case of death one will get both MF maturity value plus1 CR death benefit. In ULIP one gets either fund value or death benefit.

People cry about devaluations, but they don't understand that ULIP for card is a bad idea. Credit cards can be devalued any day or there can be a better card offered by other Bank.

Totally agree with this. If you really want a card and have the know-how of utilizing it to the fullest, then you shouldn't even think of trading an ULIP for the card. It simply doesn't make sense. ULIPs are skewed in favor of the institution/banks. Invest in MFs/Stocks if you can and don't bother about ULIPs. Only the agent and the RM/BM get rich.

 

[Vasuki]

Totally agree with this. If you really want a card and have the know-how of utilizing it to the fullest, then you shouldn't even think of trading an ULIP for the card. It simply doesn't make sense. ULIPs are skewed in favor of the institution/banks. Invest in MFs/Stocks if you can and don't bother about ULIPs. Only the agent and the RM/BM get rich.

Sbi gave 5 l insurance ulip linked at 50k yearly
I got my mother 50 lakh term insurance at 7k yearly

😂

 

[varun__goel_]

Sbi gave 5 l insurance ulip linked at 50k yearly
I got my mother 50 lakh term insurance at 7k yearly

😂

Insurer ? ?

 

[Vasuki]

Insurer ? ?

B a j a j

There was Pnb too but without medical verification ..
Went with bajaj bcz they did medical checkup & then reduced monthly payment
By 100 rs +
From 810 to 670

 

[lightwaves]

Sbi gave 5 l insurance ulip linked at 50k yearly
I got my mother 50 lakh term insurance at 7k yearly

😂

Exactly. Its bare minimum for earning members to have a Term insurance.

 

[amitr29]

Sbi gave 5 l insurance ulip linked at 50k yearly
I got my mother 50 lakh term insurance at 7k yearly

😂

Read this in Mint. To me this is a good insurance cover and planning with SIP

 

[its_karan]

Sbi gave 5 l insurance ulip linked at 50k yearly
I got my mother 50 lakh term insurance at 7k yearly