A bank account is an account maintained by a customer in a Bank or a financial institution, where he deposits or withdraws money, whenever possible. The account can be of different types namely Current Account, Savings Account, Joint account and Deposit account. The customers can also apply for different kinds of loan, when they have an account with the financial institution. The different types are loans are Personal loan, Car loan, Bike Loan and Housing Loan. These loans can be applied by an individual and the bank will approve the amount depending on the amount deposited by the individual and the monthly salary of an individual.
In this article, we are discussing about the step by step procedure for opening a bank account and how our bank accounts can be used.
Step by Step Procedure for Opening a Basic Bank Account:
- Step 1: We have to check our eligibility criteria and what kind of account can be opened. If we are opening an account for minor candidate, we have to provide Father’s or Mother’s or Guardians signature. Including this, when opening a bank account for minors, it will be a joint account with one of their parents.
- Step 2: Before Opening a bank account, we have to make clear decision on which bank we are going to deposit our money, by opening an account. This can be decided based on the features a bank is offering its customers. It can be a famous and a well reputed bank or a small bank.
- Step 3: One individual has to have a clear idea on how much he is going to deposit in his account initially and also should consult with the bank staff about the minimum amount required to open an account.
- Step 4: We have to decide on what kind of account we are willing to open. It may be a Checking account or Savings account or Deposit account or joint account.
- Step 5: There are various methods for opening a bank account like by visiting the nearby branch, through online or through voice call.
- Step 6: When you visit the bank, you have to ask in detail about the features available, documents required for opening a bank account, etc. And also you have to ask in detail about the following details:
- Minimum Balance to be Maintained
- Withdrawal Limit
- Interest rate for Savings Account
- Number of Transactions Allowed in an Account Per Month
- Step 7: Once you are clear about the account types, you have to decide on which account type to open and amount to be deposited.
- Step 8: When you decide the above factors, you have to get an application form from the nearest branch and fill in the details.
- Step 9: Including this, you have to submit the necessary documents, including your passport size photograph. We can submit any of the below documents to the bank:
- Driving License
- PAN card
- Ration Card
- Aadhaar Card
- Birth Certificate
- Step 10: Once you submit the application form, your account will be opened and a passbook for keeping track of your financial activities will be provided.
Uses of Having a Bank Account:
- Deposit and Withdrawal of money made easy through the debit card or Credit card
- We can apply for different types of loan including Educational Loan, Personal Loan, Car Loan and Bike Loan
Including this, we can also open tax saving deposits with good interest rates.