Balancing household accounts, juggling salary and expenses, buying grocery and gadgets, paying children's school fees and picking gifts for parents-these are just some of the financial responsibilities that women have been shouldering for years. Over the past decade, financial institutions have begun to take note of women's increasing hold over the family's purse strings and their specific financial needs. This has prompted them to launch a slew of products geared specifically to women's needs. But are these products unique and beneficial or are they standard offerings window-dressed to lure new customers? We run a quality check on some such products to reveal their true worth.
Savings account
Banks are wooing women through savings accounts that require a lower average minimum balance compared with that in standard accounts, or by including add-ons, such as free insurance. Currently, private banks, including Axis Bank and ICICI Bank , as well as public sector ones, such as State Bank of Travancore and South Indian Bank , offer women-oriented accounts.
ICICI Bank's Advantage savings account has a zero balance facility, while State Bank of Travancore's Pratibha savings account can be opened with as less as Rs 250. In case of the Mahila savings account with the South Indian Bank, you can avail of free travel (household) insurance up to Rs 50,000 and an accidental death insurance of Rs 1 lakh for a year. Corporation Bank has recently launched Corp Mahila Power, a 3-in-1 account for working women. It needs a low quarterly average balance of Rs 2,500 and offers a personal accident cover of Rs 1 lakh for as long as the account functions. You can also take a personal loan of Rs 1 lakh at 12.5% a year (usually the rate ranges from 16-30%) provided your annual income is more than Rs 1.5 lakh.
Catch
Before opening a woman's account, go through the terms and conditions. In most cases, the low minimum balance facility is available only when you open a recurring deposit account with the bank. If not, you will have to maintain the same limit as in a normal savings account. Also, sometimes, the free add-ons are applicable for only a year. "Most of the add-ons, such as personal accident cover, that are being doled out with women-specific accounts are cheap even if taken on a standalone basis. So, all freebies may not be justified," says Charul Shah, a Mumbai-based financial planner.
Cards
The plastic world is also flooded with women-specific products that offer a variety of additional features. For instance, Easy Shop Woman's Advantage debit card from HDFC Bank offers Rs 1 as cash back on a purchase of Rs 200 for a year. Besides this, it offers a 50% discount on locker fee for one year, special rates on purchase of gold bars, a free bill payment service (a facility that is usually charged by banks), and a personal accident insurance cover of Rs 2 lakh. Similarly, Axis Bank offers a special debit card, which insures your jewellery for up to Rs 50,000, offers protection for products that you purchase through the card and an enhanced personal accident insurance of up to Rs 3 lakh.
Catch
These cards do not come for free and usually have issuance and maintenance charges. In some cases, the cards are available if you hold a woman's savings account with the same bank, others specify the average quarterly balance that you need to maintain. Also, if you want to avail of the insurance covers, you need to use the card at least once a year.
Source: Economic Times
Thanks and Regards,
Sanchari Sinha,
Intern at DENIP Consultants Pvt. Ltd.
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