If you are going to your bank to deposit your hard-earned money, then be cautious. These days, most bank employees are forced to mis-sell third-party products. Their seniors often launch different types of campaigns to boost sales of these products.
‘Third-party products’ refer to mutual funds, insurance, credit cards, etc. Banks earn a commission on each sale as their profit. Generally, banks remain tied up with different Joint Ventures (JVs), and these third-party products belong to these JVs. Up to this point, everything is fine as banks aim to increase their other income. However, situations worsen when these JVs offer holiday tours or hefty gifts to senior officials, sometimes in cash. For their illicit gain, senior officers pressurize their subordinates to sell these third-party products. Under pressure, bank officials often mis-sell these products.
Many customers visit branches for fixed deposits, but bank officials deceive them by investing their money in mutual funds or insurance products without assessing the suitability of these products. Therefore, whenever you go to deposit money and if your bank officials recommend products different from your choice, don’t make a decision in a hurry. Always take some time to research these products and seek advice from a trusted financial advisor.
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