Procedures / Steps of Opening Bank Account.

Bank account

Bank account is a agreement between a bank and its customers allowing the customers to use bank services for a fee or an account maintained by a bank in which a deposits a depositors money is kept. If an individual wants to open a bank account, he is to obey a few continuous formalities. According to the types of bank account, there are a few distinguished  to open an account. This is why, a client is to decide on what type of bank account whether current, savings or fixed is to be opened by him.

Procedures of opening savings and current account.

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The following procedures of opening savings & current account are given below with detail :

1. Make sure you're eligible to open an account :

Before you go to the bank, its have to check whether you meet the majority of the criteria for opening an account. When in doubt, most banks will oblige the accompanying:

* You'll have to be a legitimate adult (over 18 in every nation ) to open a record all alone. Notwithstanding, in case you're more youthful, you can have a guardian or watchman co-make a record with you.

* You'll have to have substantial recognizable proof and be willing to impart fundamental data about yourself. In each nation, you'll generally require your Standardized savings number or National ID.

* You'll have to have in any event the least measure of cash for opening record. This can differ taking into account the bank and record you pick.

2. Choose the bank that's best for you : 

Not all banks are the same, actually regarding fundamental individual records. It can be extremely astute to contact the banks in your neighbourhood examine what precisely you'd get on the off chance that you opened a fundamental record. While all banks are diverse, they can by and large be lumped into two general classifications: expansive chain banks and littler neighbourhood ones.

Large chain banks: 

large banks ordinarily have branches in many towns and urban communities the nation over, which implies you'll have the capacity to get fundamentally the same administration regardless of where you go. This wide scope can help you stay away from expenses you'll need to pay for utilizing other banks' administrations (like ATM charges, and so forth.) Expansive banks likewise generally have the assets to offer administrations like 24-hour help lines for their clients. Furthermore, these banks have a tendency to have a steady, trusted notoriety — they are unrealistic to fall flat or present you with "amazement" challenges.

Smaller Local Banks: 

Small banks offer a more individual, human experience. They have a tendency to be friendlier than enormous banks in a few ways - not just will they be willing to offer more individual, one & only consideration, yet they'll frequently be willing to "work with you" when something happens (like you overdraft from your record). Littler banks likewise typically charge littler charges for utilizing their administrations. Then again, littler banks fall flat more much of the time than huge banks (this is still exceptionally uncommon, though)

3. Pick the type of account you want:

Most of the time, one someone opens his or her first bank account, it is a regular checking or savings account (or both). Both of these types of accounts allow you to safely store your money with the bank and withdraw it when you need it. However, each type of account is best for different tasks.

Checking:

A checking account is what most people use for day-to-day purchases. With a checking account, you'll get a chequebook and a debit card that you can use to pay for things with the money in your account. Money in a checking account doesn't change over time - if you want more money, you have to put it in yourself.

Savings: 

As its name suggests, a savings account is best for saving money long-term. Money in a savings account slowly gains interest  in other words, the bank will pay you a small amount for storing your money with it. The more money you have in the account and the longer you save it, the more interest you get. You can still withdraw money from a savings account at banks and ATMs, but you can't generally use it for checks and debit card payments. 

*If you have enough money to meet the minimum deposit for both, having both a checking and a savings account is usually best. You can use the checking account for your daily expenses and put extra money in your savings to make interest.

4. Visit your bank and ask to open an account :

Opening an account in person is usually the best option for first time account holders. One big advantage of opening an account in person is that you can ask the teller all of your questions and get immediate answers (as opposed to the waiting you'll have to do on-line or on the phone). Also, because you can sign the forms and receive your confirmation documents on the spot, the process of opening an account is also usually speedier in person.

* The rest of this section will assume you're opening an account in person. However, depending on your bank, you may also be able open an account over the phone or even on-line. These options vary from bank to bank  not all banks will let you open your account these ways.

5. Ask important questions before you finalize your account :

Now is an excellent time to ask for clarification on any issues regarding your account that you don't understand. Below are a few suggestions for questions you may want to ask, but don't be afraid to ask any others that occur to you.

* Is there a monthly fee for maintaining this account? If so, what is it?

* Is there a minimum balance that I must keep within this account? If so, what is it? What sorts of          fees apply if I go under that limit?

* What is the interest rate of my savings account? How often does interest generate?

* Is there a limit to the amount of transactions (deposits/withdrawals, check writing, ATM uses) I          have per month?

* Where can I withdraw cash without paying any fees? What is the fee for using an ATM machine        that doesn't belong to this bank?

* Is the account I'm applying for insured by a Deposit Guarantee Scheme (DGS)?

6. Collection of application form : 

He / she has to collect application form from the dutiful officer of the branch where he/she wants to  open his account.

7. Fill-up the application & specimen signature card:

In this stage, the agreed individual or organization is to perfectly fill-up the form. The name of applicant, parents & selected nominees,  permanent  & present address, occupation,  the amount of first deposit etc will be written on. An old account holder of that branch must sign on particular area of that form and on the back side of his/ her two copies passport sized photographs should be attached to the form. Moreover a signature card  also must be fill-up with it.

8. Enclosing  necessary information & documents : 

As noted above, opening a checking account requires a few basic pieces of personal information. You may or may not have to provide

documentation to prove this personal information. This depends on the exact bank you're opening an account with. In general, it's a good idea to have:

Proof that you are who you say you are: Have a government-issued ID with your photo on it with you (a driver's license or a passport are best), photocopy of trade licence, contract deed, article of association, registration,  account maintaining decision etc are to be placed.

Proof of address: 

A phone bill, driving license, or any other official document with your name and address will usually do.

Proof you are a registered citizen:

The bank will ask for your Social Security number, taxpayer identification number, or employer identification number to ensure that you are "on record" with the government. As long as you know this number, you don't generally need to have your Social Security card, etc. with it.

9. Submission of application form :

After filled up that form he has to submit it to bank and if authority is satisfied on him then they will give him or her a particular number to his/her name that is his account number.

10. Collection deposit receipt from bank & paying  primarily deposit to that number given by the bank authority.

11. Keep the account documents you receive secure. 

When you finish completing your account, you will receive documents that contain important information about your account. Keep these in a safe place, like a strongbox. Don't let people you don't trust access these documents they may be able to use them for malicious purposes. If you can, it's a wise idea to commit the following information to memory so that you don't need to rely on the documents in the future:

Your four-digit PIN number: 

You need this to use your debit card for purchases.

Your bank account number:

You need this for financial tasks like setting up direct deposits.

Your Social Security number: 

You need this for various tax and financial tasks in the future. If you believe your account information has fallen into the wrong hands, you can always contact your bank and request a "freeze" on your account to prevent unauthorized use.

Procedures of opening a fixed account.

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The following procedures of opening fixed account are given below :

1. Collection application form.

2. Fill-up the application form.

3. Paying  deposit.

4. Collected deposit receipt.