Keep a track on the bank’s performance:

There are a few parameters which can bring out the actual financial status of the bank and can distinguish the recent performance of the bank in which a customer has deposited the money.

The ratio of net non-performing assets and restructured accounts are the parameters through which bank stability can be measured.

In simple, the ratio of net non-performing assets are the interests that the bank has been receiving on the given loans. If the customer who has received the loan fails to pay the interest within 90 days, then the given loan is considered to be non-performing asset.’

Restructured accounts are when a firm is under debts and fails to pay the interest on time and the bank extends the loan amount by merging the balance loan amount. Further bank can also reduce the interest rate on the outstanding loan balance.

These points can affect the bank’s growth since it is dependent on the Interests for its income.

Ladder your deposit:

As most of us don't know, interest move to multi year cycle and low interests are expected if the deposit is matured. In order to avoid this hassle laddering your deposit is recommended. If customer is planning to deposit 4 lackh, it is advised to deposit 1 lackh in every successive, so that the recent deposit earns more than the matured deposit.

Also Read: Tata Trusts To Develop 264 Villages In AP

PM Modi Takes To Twitter To Hail BJP Win In Bengaluru Municipal Elections