Discover Personal Banking: Types, Benefits & Tips

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03 JUNE, 2024

Personal banking, also known as retail banking, aims to offer individuals diverse banking services and financial products. As the name suggests, it simplifies access to on-demand services tailored to a customer's relationship with the bank.

Personal banking encompasses products such as savings accounts, current accounts, and debit cards. It also includes financial products like credit cards and loans, as well as investment banking and wealth management services.

This article will discuss personal banking in detail, including its types, benefits, and tips for using it wisely.

What is Personal Banking?

Personal banking refers to financial services a bank provides to individual customers for personal use rather than business purposes. When individuals open current or savings accounts, apply for personal loans or credit cards at a bank or use online and mobile banking features, they engage with the personal banking division of the bank.

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Benefits of Personal Banking

Properly leveraging personal banking services provides multiple practical and financial advantages. Let's explore a few key benefits:

Organising Your Finances

Maintaining your finances through proper banking tools gives you control over your money. You can effectively budget and meet important financial goals by gaining visibility into your spending, income, and savings. Using different accounts for different purposes prevents overspending and late payments.

Preparing for Life's Unexpected Events

No one can predict when unexpected home or car repairs, medical bills, or job losses may occur. Maintaining accessible savings gives peace of mind, knowing you have funds to draw on during tough times. Savings can prevent getting trapped in an expensive debt cycle when emergencies happen.

Earning Interest on Your Money

Depositing money in feature-rich bank accounts, such as a Kotak savings account with ActivMoney, allows your deposits to earn FD-like interest over time without any required effort. This gives account holders an advantage by allowing them to earn more on their savings without any lock-in period.

Benefits Beyond Interest

Some accounts provide rewards beyond interest income, such as loyalty points that can be redeemed for gift cards, account credits or even travel miles, depending on the financial institution. This offers customers extra perks when choosing certain accounts.

Common Personal Banking Products

Here are some major banking products you can leverage to manage your finances:

Bank Account
Debit and Credit Cards
Loans (Secured and Unsecured)
Fixed Deposits
Recurring Deposits

How to Get Instant Personal Loan in 30 Mins through Personal Banking?

To obtain an Instant Personal Loan through Personal Banking at Kotak Mahindra Bank, follow these steps:

Check eligibility: Ensure you meet the bank's criteria, including age, income, and credit score requirements.
Apply online: Log in to the Kotak website or mobile app. Check for pre-approved loans, or click 'apply now' to complete the application.
Provide Necessary Documents: Upload or submit your application with required documents such as a PAN Card, Aadhar Card, and three months bank statements or salary slips
Verification: The bank will verify your details and assess your creditworthiness.
Approval: The loan amount will be disbursed to your account upon approval within 30 mins.
Repayment: Repay the loan through EMIs over the agreed-upon tenure.

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Conclusion

Personal banking opens many doors to safely, efficiently and strategically le finances as needs change throughout life. Kotak Bank offers tailored account options to serve all individuals, from students to families to seniors. Harnessing the breadth of the services provided by a dedicated personal banker, such as Bank, yields financial and practical benefits.

Frequently Asked Questions (FAQs)

What comes under personal banking?

All the services banks create and provide for private, individual customers rather than companies are called personal banking. These services include credit and debit cards, current and savings accounts, and loans.

What are the five most important banking services?

The five most important banking services are current and savings accounts, loan and mortgage services, wealth management, credit and debit cards, and overdraft services.

How do you use personal banking?

Individuals use personal banking services to deposit funds safely through savings and current accounts, access cash via debit cards or online transfers, pay bills seamlessly through digital payment options, apply for loans or credit cards for large purchases or emergencies, and create savings goals through targeted account types.

What are private banking services?

Private banking is a service offered by banks and other financial institutions to high-net-worth individuals. Usually, it involves providing customised services like financial planning, asset management, and investment advice.

What are the risks of private banking?

Private banking risks in India include potential capital loss due to market fluctuations, regulatory changes, fraud, and inadequate risk management, which can impact wealth preservation and financial goals.