In today’s times, having a bank account is one of the essential requirements. A bank account represents funds that an individual keeps with a financial institution with the explicit understanding that these can be withdrawn at any time. A customer can go to the bank at any time and withdraw cash from his account. A bank account also gives customers other services such as direct payments, depositing cheques and drafts to receive payments, drawing cheques to make payments among others.
A bank account can be opened both online and offline. The offline procedure is to personally visit a bank, collect the account opening form, complete the details, and submit the form with the required documents.
The online bank account opening procedure is a lot simpler. Most banks have online forms that have to be filled up, and the relevant documents can be uploaded online. Some banks deliver cheque books and a welcome kit to the customer’s residence in a few days. These days, it is not only private banks, but several public banks also have online bank account opening for new customers.
There are different types of bank accounts that can be opened depending upon the needs of the customer. It is best to find out the features of each account and pick the one that best serves the customer’s needs.
The types of bank accounts are:
This bank account is usually opened by individuals and hindu undivided families as a place to park their funds. Savings bank accounts earn a nominal rate of interest. These accounts offer fund withdrawal, debit cum ATM cards, cheque processing, and other facilities. Most banks offer net banking facility for savings bank accounts. Savings bank accounts have to maintain a minimum balance. If the minimum balance is not maintained, a certain charge is applied.
Companies open salary bank accounts for employees who may not have bank accounts. It is also possible to convert a regular savings account to a salary bank account. A salary account is similar to a savings account, except it has no minimum balance requirements. To make this account attractive for the employees, banks offer employees instant salary credits, phone banking, free internet banking, and other facilities. These facilities and benefits are not uniform and are offered depending on the company that opens salary accounts with the bank.
This is the most popular account for companies and businesses. This account does not restrict the number of transactions in a day. The charges for services on current accounts are lesser than savings account. No interest is paid on current accounts. Businesses can take overdraft facility to help with working capital needs.