Because the bank has the right to dip into your savings and settle your credit card dues. An extract from HDFC Bank’s Most Important Terms & Conditions for Credit Cards (version 1.23) reads:
Right of Lien
The bank, at any time and without notice, will have lien and right to set-off all monies belonging to the Cardmember and/or add-on Cardmember standing to their credit in any account/custody of the bank, if upon demand by the bank, the balance amount on the card account is not repaid within the prescribed time.
Could be a sticky issue especially when you have any disputed and unresolved credit card transactions. To play it safe, it’s a good idea to avail a credit card from a bank where you don’t keep your other savings.
What do you think? What has been your experience in this matter?
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2 thoughts on “Tip Tuesdays: Why You Should Not Own a Credit Card From a Bank Where You Also Have Other Deposits”
Hey- dropping in after a long time and as usual the- still tech unsavvy me is unable to make sense out of a lot of your posts. Still in Bangalore?
This is an important information, I’ve already had unpleasant experiences with Canara bank dipping into my life savings and appropriating it with loan amount..It always turns out to be a killer and when we are in need for urgent money we find that there’s none left in our savings amount and the banks have no qualms about doing such things.