What is Personal Banking and Its Essential Services Explained

Personal banking is a vital part of our financial lives, allowing us to manage our money, make transactions, and achieve our financial goals. It's a service provided by banks and other financial institutions that cater to an individual's banking needs.

A personal bank account is the foundation of personal banking, providing a safe and secure place to store our money. We can deposit, withdraw, and transfer funds as needed, using various payment methods like checks, debit cards, and online banking.

To access these services, we can visit a bank branch, use online banking, or mobile banking apps, which are convenient and time-saving. According to the article, online banking allows us to check our account balances, pay bills, and transfer funds 24/7 from the comfort of our own homes.

Personal banking services also include lending options, such as personal loans and credit cards, which help us cover unexpected expenses or make large purchases. We can borrow money from the bank, repay it with interest, and enjoy the benefits of credit cards like rewards and cashback programs.

Personal banking is a broad term that can be unclear, but essentially it refers to a type of banking that focuses on individual financial needs and goals.

The term can be overwhelming, but understanding its basics can help you make informed decisions about your finances.

Personal banking typically involves managing personal financial accounts, such as checking and savings accounts, credit cards, and loans.

It's a crucial aspect of our financial lives, and being aware of its impact on our financial wellness is essential.

In today's automated banking world, personal banking has become more complex, but also more accessible and convenient.

By understanding what personal banking entails, you can take control of your finances and make the most of your money.

Personal banking services can be accessed through various channels, including online banking and phone banking. You can open a savings account or a current account through online banking, and even close an account or withdraw money if needed.

Some banks also offer chequebook services, where you can request a new chequebook online or in-person, and it will be delivered to your doorstep within 3-4 business days.

You can also use personal banking services to transfer funds, whether within the bank or to another bank, using services like IMPS, NEFT, and RTGS. Additionally, you can check your transaction history and download your lifetime transaction history for a clear view of your financial activities.

Here are some key services offered through personal banking:

These services make personal banking more convenient and accessible, allowing you to manage your finances on the go.

Debit cards are linked to your bank account and funds are debited in real-time when you swipe or use them.

Before the rise of UPI transactions, debit cards were the go-to option for online transactions or in-store purchases.

Credit cards, powered by Visa or MasterCard, offer ease of use and benefits like air miles, cash back, and reward points.

In fact, credit card offers like air miles, cash back, and reward points proved to be immensely beneficial to many consumers.

Convenience is a huge factor with credit cards, as they enable you to purchase an item and pay the amount via EMIs.

Banks and fintech players realised there's a huge scope in the credit card segment and introduced different credit card variants serving different purposes.

Prepaid cards, commercial cards, Unifare Metro Cards, travel cards, and other types of cards are also available in the market.

Loans are a crucial aspect of banking, and banks offer a variety of loan options to cater to different needs.

Most banks offer home loans, personal loans, two-wheeler loans, vehicle loans, and loans against property. Each of these loans has its own unique features.

The interest rates for loans vary as per the type of loan, so it's essential to compare and choose the one that suits your needs best.

Banks often offer loans with different tenures, allowing borrowers to choose a repayment period that works for them.

Mutual funds are a great option for investors who want to diversify their portfolios. Several banks have their own Asset Management Company (AMC) that allows investors to handpick their choice of mutual funds to invest in based on their financial goals.

Personal banking services are designed to make your financial life easier. You can open various types of accounts, such as fixed deposits, savings accounts, and current accounts, through a bank's personal banking services.

To manage your accounts, you can use online banking or visit a bank in person. For example, you can request a new cheque book via online banking, and it will be delivered to your doorstep within 3-4 business days. Alternatively, you can walk into a bank to obtain a new cheque book.

You can also pay bills and recharge services through personal banking, including electricity bills, telephone and mobile bills, and prepaid DTH/mobile connection/data card recharge. Additionally, you can transfer funds using services like IMPS, NEFT, and RTGS.

Here are some common personal banking services:

A bank account is a fundamental tool for managing your finances. Banks offer various types of personal banking products, including savings and current accounts.

Savings accounts allow you to save your money more efficiently and earn interest on your deposits. The interest rate on a savings account typically ranges from 2.5% to 5% per annum, depending on the amount deposited.

You can open various types of accounts, such as fixed deposits, recurring deposits, and savings accounts, through a bank's personal banking services. These services also enable you to close an account or withdraw money from an account.

Some popular types of bank accounts include salary accounts, child education plans, and pension accounts. Each of these accounts serves a specific purpose and varies from bank to bank.

Here are some key benefits of having a savings account:

You can also use personal banking services to pay bills, manage accounts, invest, and get loans, all on the go via net banking services.

Insurance is an important aspect of banking services that many people overlook. Most banks have a separate insurance arm, similar to mutual funds.

You can sign up for a policy based on your individual requirements, providing you with tailored coverage.

In fact, having insurance through your bank can be a convenient and hassle-free experience, as it's often integrated with your existing banking services.