Monday, October 01, 2007

Banks | Partners In Franchise Business

Finding the right bank best suited for you is like getting married, either it is a match made in heaven or a match made in hell. The number of banks we have in our country that are competing for your business makes sure that we will never run out of choices. Choosing the right bank is important especially for businessmen who rely on banks for their daily transactions and should really consider banks as their partners in business rather than just a place to make payments, withdraw and deposit their funds. But what are the things we need to look for when choosing for the right bank? Here are the top three criteria I look for in choosing a bank for my franchise business.

1.) Accessibility and Geography - I consider this the most important criteria for me when choosing a bank. A bank can have the longest banking hours and the lowest maintaining balance or even the friendliest staff, but if they are located very far from where you live or do your business then especially if you have to go there everyday, all of the other criteria goes out the window.

2.) Banking Hours – Most of us has experienced needing to go to the bank for an important transaction only to arrive there 5 minutes late after the bank closed and the guards will not let you in, pretty frustrating isn't it? Most banks operate from 9 a.m to 3 p.m but some are open up to 7 in the evening. You should also take note on the cut off time for their check deposits. This varies not only from bank to bank but also from branch to branch. I may be a bit bias here but I found that Banco De Oro does a very good job keeping their bank hours longer and some of their branches are even open on Saturdays, particularly in malls.

3.) Maintaining Balance and Penalties- Depending on the size and scale of your franchise business operations, the amount of money you need to maintain an account without falling below the required maintaining balance is important. Depositors who fall below the minimum maintaining balance of their accounts are penalized between 100 to 200 pesos per month, That is more money than you will ever get from the interest of your savings account in a year. Some businessmen complain about the charges and claim they were never informed about them. But the banks terms and conditions in regards to penalties and other matters of concern are clearly indicated in the documents we are required to sign up upon opening of the account so we have no legal right to complain. Make it a habit to read all their terms and conditions prior to signing because once we sign, we are agreeing to their conditions. If you find their terms unacceptable then simply look for another bank whose conditions you are more comfortable with.


Anonymous said...

may i ask, if you know which bank here in the philippines gives the highest interests rates for its savings accounts?

cool_78 said...

Hi! Your best bet would be rural and thrift banks like First Country Financial and Bank of Makati. Both are offering twice the interest rate commercial and savings banks are offering. You might ask if it safe to invest in such banks? What if they go under? Well as long as they are PDIC insured, which means depositors are insured up to 250k php of their deposits, you have nothing to worry about as long as your deposits do not exceed the maximum insurance amount.