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How much commission do bank employees make in FDs?

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Asteroid

Asteroid

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Whenever I go to the bank, I get hounded by the bank employees to make an FD. The Standing balance in Savings just drives them crazy, sometimes they will just call you up in the middle of office hours just to ask you to make an FD since you're losing out on potential interest by leaving money in savings account.


This leads me to believe that bank employees make some good commission on FDs. It's not just HDFC bank, Same happens with ICICI and Axis Bank to my family members who hold accounts there.

How much %age or flat commission do they make on FDs?
 
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Do they get commission on getting FD booked or its term completion? Like what if a user closes the FD sometime after booking.
 
I don't think they get commission. My mum's in a regional bank as a manager, they have targets that are needed to be met and get bonuses based on that. Plus, what banks most desire is cash surplus, the more cash they hold the more they can lend.

I don't know about other banks, but in my mum's bank, each branch acts as it's separate entity, in a sense that their salary, loan, everything is calculated from that branch's funds and profit. If the branch makes 50l in net salws in a year, then out of those 50l, they will set aside their salaries, etc.
 
Asteroid said:
Whenever I go to the bank, I get hounded by the bank employees to make an FD. The Standing balance in Savings just drives them crazy, sometimes they will just call you up in the middle of office hours just to ask you to make an FD since you're losing out on potential interest by leaving money in savings account.


This leads me to believe that bank employees make some good commission on FDs. It's not just HDFC bank, Same happens with ICICI and Axis Bank to my family members who hold accounts there.

How much %age or flat commission do they make on FDs?
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No commission at all. It's basically part of the scorecard and incentives are paid basis scorecard achivement. Scorecard has other parameters like Life Insurance, General Insurance, MF, Sip, Balances , NTB etc.

There are huge FD targets on Branch managers and these targets are divided into yearly, quarterly, monthly and weekly.

If branch has enough huge casa balances, they push client for FD. Deposits helps banks to have a more stable lending book
 
No direct commission for each FD...It is slab based for private bank employees based on monthly targets...If category A BM has target of 5 CR..If she achieves, she gets incentive of 1 lakh...If same target is achieved by Category B then incentive is double i.e. 2 Lakh
 
The commission is for agents. The branch officials have tie ups with the agents or make their friends or family members an agent, and whenever you go to a branch, they put the Agent's ID and the commission goes to the agent and they get the amount from the agent.

Technically the employees only have targets. But I told what generally happens.

It is for this commission some startups like Stable Money, SuperFD, etc are running.
 
Piyush_Jaiswal said:
The commission is for agents. The branch officials have tie ups with the agents or make their friends or family members an agent, and whenever you go to a branch, they put the Agent's ID and the commission goes to the agent and they get the amount from the agent.

Technically the employees only have targets. But I told what generally happens.

It is for this commission some startups like Stable Money, SuperFD, etc are running.
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Not in private banks for sure. This is true in case of FD offered by Rated companies
 
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