Never Believe Citi Bank executives or the offers they make!

The Tie clad gentleman introduced himself as an executive of Citi Bank and added that he is an Engineering graduate from the IIT and an MBA from Calcutta IIM.  Surely, I thought this lad must be knowledgeable and fit to handle my life savings which I thought of parking with CITI with an expectation that they have brilliant managers for the funds that the clients park?  Along with this gentleman came a neatly attired, English speaking lady who also introduced herself as an Executive from the same bank. It is only at a later stage that I understood the purpose of bringing well dressed and well spoken ladies along to canvass business!!  Both the persons rattled all Banking Mantras and the existing market and the probable outlook that Citi fund Managers hold for my investment to double or may be triple within a short span of 3 years!  The few doubts that I had to clarify were held back as I did not want too much ignorance to be exhibited specially in front of the lady executive who was much younger in age and experience in Banking Industry.

The officer asked me if I have inclination to retire at 65 and suggested an Insurance policy of Birla sun Life with a premium paying period of 10 years and insurance covered for 21 years.  he also spread a work sheet in front of me stating the huge gains that would accrue at the end of 3/5/7/10 years which was quite fascinating for anyone to get lured into investing with them!!  The insurance was unit linked policy and was subject to market conditions and this was never explained to me.  I paid insurance premium for 7 years for myself and my wife and whenever I enquired about the surrender value, it would be at least 25% less than the paid of value of the premium that I have been paying for 7 years. I was quite furious and wanted to know what exactly is being done by the Birla Sun Life Insurance Managers or is it that they are dumb idiots who are unable to extract benefits from the market?  I wrote a strong letter meaning business to the Birla sun Life who deputed 2 of their executives to explain and assuage my feelings about the company.  what shocked me further was when the executives told me  the fact that Birla Sun Life Insurance paid nearly 35% of the premium that I paid towards my insurance policies to CITI Bank as commission for bringing them this business!!! what a circle of fraud and malicious dealings enacted by the Insurance company engaging a Bank as its agent  to bring in gulliable  customers!! Instead, the Bank through their executives lure customers by showing fake charts of gains and rewards by  investing with the Birla sun Life Insurance and gain profits for themselves? This is surely not ethical banking!  When you confront the bank, they simply say that the markets are down and not looking up and once the markets bounce back, I would see profits!!!

Not satisfied with Citi Bank explanations or the Birla Sun Life Insurance explanations, I decided to close both my bank account as well as the Insurance which I surrendered.  I got much less than the paid up premium value although I stayed invested for 7 years without any yield or profits. Obviously, the Insurance company has kept the value of the product low so as to cover the commission paid to Citi Bank all these years!!  Citi Bank is practising unethical banking and instead of being fund managers to their clients, they are turning otherwise.  It is time, RBI comes down heavily on such Banks and restrict their business field to pure Banking where customers are rewarded by way of interest and profits and the bank makes profit by ethical lending to needy borrowers or industries.  There is no point in marketing Insurance policies for private players for the sake of commission and entangling customers in difficult modes of investments.  The term banking should bring in respect and attract customers as it used to be in earlier years.  I have lost a considerable chunk of money through investment in Citi Bank who in turn invested them in various Mutual funds and insurance policies of private players such as Birla sun Life for achieving short term gains for themselves but lost a customer who should have been otherwise happy?

My advice to all those wanting to invest their precious money is not to get lured by the Bank executives who promise Moon but deliver only an ice ball which also melts! Beware of such people and be careful in your investments.  It is always better to invest in Nationalised banks and like products where the returns may be low but the capital is safe and some reasonable returns are assured!