Over yesterday’s discussion, my friend Sachin raised a very genuine point:
Never apply for credit card from the bank in which you hold your savings account.
It looked odd to me at first glance, but he explained.
Suppose your accounts are with the same bank. Then, in case of a dispute/hidden charges/wrong billing, the bank in spite of all your protests and oppositions would first automatically debit the credit card dues and then offer you a chance to put your case and claim the refund of the balance.
However if the 2 banks are different, then its the onus of the bank to convince you the genuineness of the charges and if nothing works out, you could always threaten to close the account and sever all relationships.
7 replies on “Credit Card and Savings Account”
Ankur, I guess the company can debit from ur savings account only if you given in writing or applied online for it (activated auto-debit)
Its advisable not to activate it. I dont think they can auto-debit without ur consent.
My cc company and savings account are the same and they will auto-debit only the min amount due.
I can cancel that if i want.
try cancelling it…. the bank will give you infinite trouble in the process
Ankur, this post came as a prophecy to me. It was just today that I was thinking if there is any advantage in having a credit card with the same bank in which you have your saving account and this was my exact fear too. I guess I was justified in having that fear. Thanks to you and to Sachin as well.
maybe we just read your mind 🙂
valid points
nyways credit cards r best avoided
Ah, in today’s world, where the trend it toward fewer banks (mergers, consolidations) and not more banks, even having a credit card from a different bank will work only as long as the two banks do not decide to merge.
yups 🙂
luckily i do not see the PSU banks being bought over by FIIs so there would be atleast 2 conflicting groups