Skip to main content

Renting a Bank Locker

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

The cheapest – the size of a pigeon hole — comes with an additional fixed deposit of 25,000. The most expensive entails a 4 lakh fixed deposit. She says she doesn't mind the fixed deposit per se, provided there is perpetual tenure for the locker.

But one banker clearly told her that the day she breaks the deposit, she will lose the locker.

A leading private bank even tried to sell her an insurance policy with a premium of 5 lakh to be paid in 10 installments over 10 years. The document the bank gave showed it as a recurring deposit. But the riders in the scheme clearly indicated it was an insurance- cum- investment plan.

And bankers are not cagey about it. If the customer agrees to making a deposit over a savings bank account, the deposit amount should be at least 3 lakh. Otherwise, it does not make business sense to the bank.

The Reserve Bank of India (RBI) guidelines do not deny locker facility to those who are not a customer.

But, a bank asks such customers to open a savings account.

This is because opening a savings account helps complete the know your customer ( KYC) norm. Also, a savings account at the branch makes it easy ( for the bank) to collect annual charges. However, even if you agree to the bank's conditions, you may still not be able to find a desirable locker. This is because getting a bank locker has become difficult, especially in the metros. Public sector banks, which hold the majority of lockers, have exhausted a large part of it. Space has become another issue, hence the availability of locker across branches vary. Banks don't have too many lockers in their South Mumbai branches.

And there is no space to provide new ones. But branches in suburbs have higher number of lockers and so do those in smaller cities.

Suburbs in metros may not always be of help as metros are spreading fast and there are space constraints. The space issue has also contributed to higher rentals for lockers.

According to experts, in the past year, locker charges have increased between 25 and 70 per cent, depending on size and location.

Private lockers

The other option could be private sector banks. But there is a wide disparity in locker fees between public and private sector banks. For instance, the rental prices for a mediumsized locker in a public sector bank can be 2,500- 3,000 a year. In Typically, banks ask for a caution deposit worth three years of locker rent. Banks also charge service (when the bank has to break open the locker if you lose the key). Bankers suggest becoming a high- end or preferred customer, if you can.

But such customers are charged a bomb for facilities such as 24x7 access, 5- 10 times the price of regular lockers. This facility is available in select branches and can cost 15,00045,000, depending on the size. Although you would prefer lockers in branches in and around your house, it is advisable to instead look for new bank branches. Because, in order to get footfalls, these branches may not only provide a locker immediately but also waive off the security deposit (sometimes up to 50 per cent). Or, you could pay locker rental in advance for 10- 15 per cent lower rent or security deposit.

It would be difficult to gauge the cost of lockers before zeroing down on a bank. Bank representatives or call centre executive never part with this information till you visit the branch.

Then, there are alternatives to bank deposit lockers. Examples are private companies such as India Safety Vaults ( present in Mumbai and Pune) and Navketan Lockers (Hyderabad and Mumbai).

According to an India Safety Vaults' executive, the company provides lockers in nine different sizes, A- type to L- type. You will be charged 21,796 for three years for an A- type locker and 59,000 a year for an L- type.

Navketan Lockers' charges for A to L- type can either be paid for one year, three years or five years. The annual charges for A- type lockers is 6,545 inclusive of service tax and caution deposit, while for the L- type locker it would be 29,467 inclusive of service tax and caution deposit (source: company website).

Locker business runs on trust, which is more for banks than private companies. That's why private companies have not been an instant success. Importantly, private company lockers cost more than that of private banks." Private companies also do not insure the lockers, which banks do.

According to RBI guidelines, demanding a deposit or levying insurance charges to rent out a locker is a restrictive trade practice. And new customers (only new ones) can complain to the apex bank and the head office of the bank where one applied for a locker.

The regulator also says banks should maintain a wait list of applicants for lockers, give them a number and ensure complete transparency in the allotment of lockers. However, experts say while banks will try and squash the charges, RBI's redressal system can be frustratingly slow.

Scarcity of space, high rentals and slow redressal procedures are all issues

|New customers open account with |Existing customer may also need 1 lakh in savings account or a deposit of 75,000 |High risk customers may have to pay up to 1 lakh for insurance cover of the locker |Existing customer may be preferred over a new one, NRI chosen over existing customer |Preferred customers may be waived off up to 50% of the rent or caution deposit |Or, get up to 8- 10% discount for paying rent in advance |Lockers from private companies more expensive than those from private banks

WHAT CAN YOU DO?

|RBI guidelines say banks cannot demand a deposit or insurance charges for a locker |Banks should maintain applicants waitlist for lockers, give a waitlist number |New customers can complain to the apex bank |Redressal may be slow

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

How Tax Deducted at Source (TDS) works?

    THE tax season is here. And if you are an employee you can't blame your employer for deducting large chunks of money from your salary towards tax deducted at source ( TDS ), which he is legally obliged to do. Your bank will also deduct some percentage from your FD interest of Rs 10,000 or more towards TDS! So what is this TDS all about? How is it computed? Are there any changes this year? Read on... What is TDS? TDS reduces your taxable income and could even provide tax relief! The TDS collections account for 40 percent of the total taxes collected in the country. As the name suggests TDS is the amount of tax that is deducted at source in certain types of income . The TDS thus collected is deposited in the Government treasury within a specified time. How is it computed? Some of the types of income where TDS is applicable include salary, interest, rental fee, interest on securities, insurance commission, dividends from shares and UTI/Mutual Funds, commission and brokerage

Modern day balanced mutual fund approach

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   In reality, most balanced funds have a strong tilt towards equity instead of a mix of equity and debt THERE are various types of mutual funds available to investors with specific features. Often investors have a particular idea about a specific type of funds in terms of their features and risks, but that is not what is actually available. Therefore, it is necessary for an investor to understand the actual position before picking up a fund. This requires some work on the part of the investor. One example can be the situation with balanced funds. Name is not representative: One of the first things that an investor has to understand is that the name of the fund is often not representative of its investment pattern. The name often represents only the aim of the fund, and not what it actually is.

ELSS Tax Saver

ELSS Stands for Equity Linked Savings Scheme.   ELSS Fund are mutual funds with 3 years of lock in period and offer income tax benefit under section 80C. They are open ended to purchase. Not all Mutual fund Investments are eligible for tax exception. List of Tax Saving Mutual Funds   Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.   Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   These Application Forms can be used for buying regular mutual funds also   Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) HDFC TaxSaver ICICI Prudential Tax Plan DSP BlackRock Tax Saver Fund Birla Sun Life Tax Relief '96 Reliance Tax Saver (ELSS) Fund IDF

Should you invest in tax-free infra bonds?

THOSE looking to save tax should take note of the latest buzz in the debt markets. Power Finance Corporation ( PFC ) and Housing Urban Development Corporation (Hudco) have launched bonds that will help you save more tax than your regular infrastructure bonds. Soon, IRFC and NHAI are likely to follow suit with similar bonds. KP Jeewan, general manager, debt markets, Karvy Stock Broking, says: "The coupon in these bonds are completely tax-free and those in the highest tax bracket can expect an effective yield of 10.75 per cent, compared to the 9.5 per cent a 10-year public sector bond would offer." The PFC and Hudco offerings are of 10- and 15-year tenures, with coupon rates of 7.5 and 7.75 per cent, respectively. Unlike other regular tax-free infra bonds, the tax benefits in these bonds are not capped at ` 20,000. Even besides these tax free bonds, those in the highest tax bracket have had plenty of opportunities to invest in tax saving infrastructure bonds under 80 CCF i
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now