I haven’t operated my savings bank account for five years. How do I re-activate it?
Rahat Sinha asked:

If you have not operated your account for over five years then, in all likelihood, the bank would have declared your account as dormant. If no transactions have taken place in a savings account for a considerable period (12-24 months) or 6-12 months in case of a current account, the account would be declared dormant or inoperative. However, during this period the bank will make every effort to inform the depositor of any charges applicable on the account. In order to re-activate your account, you will have to give an application in writing, addressed to the branch manager of the bank and provide a photo identity proof. The bank will verify your signature and, in some cases, may also charge a small fee for reactivating your account. Some banks have waived these fees.

I have both credit and debit cards. I am planning to travel abroad, and have been told to use either cards or traveller’s cheques instead of cash. Will traveller’s cheques be a better option?
Aarushi Singh, email

The maximum amount of foreign exchange that you can buy for your leisure or tourism purposes abroad for one or more trips is $10,000, or its equivalent, in one calendar year. The most convenient for you would be to keep $2,000, or its equivalent, in the form of currency and carry the rest either in the form of a traveller’s cheque or a travel card. A travel card is a pre-paid card, into which you can put money to be used abroad.
Travel cards are a much better option if you want to make your trip hassle-free and convenient as far as managing money is concerned. These cards can be used abroad to withdraw cash in the local currency from over 1 million VISA ATMs. These are valid at over 14 million merchant establishments accepting VISA Flag Cards. Some of the leading financial institutions that provide travel cards are HDFC Bank, ICICI Bank and State Bank of India.

The cards are valid for seven currencies: US dollar, euro, pound sterling, Swiss francs, Australian dollar, Canadian dollar and Japanese yen. According to RBI, you can have a maximum of $10,000, or its equivalent, in your card in one calendar year. The minimum amount is, however, 200 units of any currency. These cards also give insurance benefits.

The covers range from personal accident, missing connecting flights and loss of travel documents, to hijacking and delay in flight. The policy gets activated once you buy the card. The claim, however, is applicable only if the travel card is active on the date of the accident and has some balance left in it.

How do I connect my savings bank account with my fixed deposit account? What is the process and what are the benefits?
Anil Reghunathan, email

This is a good way of earning higher interest on your money. You can link your savings account with your fixed deposit in the same bank by opting for a sweep-in facility. You can link your savings bank account with multiple FDs in the same bank. Any deficit in your savings or current account will be met by a withdrawal of an exact value from your FD. Since deposits are broken down in units of Re 1, you will lose interest only on the actual amount withdrawn from the FD. You will have to give a request in writing to the bank. Almost all leading banks in the country offer such a facility.

How important is it to have a clean credit history? How can I ensure that my credit history is clean?
Chirag, email

It is very important for you to have a clean credit history. In case your credit history is bad, it will become very difficult for you to get a new line of credit in future. It’s fairly easy to maintain a clean credit history. First, you will need to pay all your credit card bills on time. Further, ensure that you do not default on any of the loans that you are currently servicing. Once you have paid a loan in full, insist on a letter from the institution stating that you have paid the loan in full and there is no amount outstanding.

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