A bank account creates a link between the bank’s customer and the financial institution. It can be identified as a service provided for the customers for their savings, money transfers, and online payments and, therefore, it has made the lives of the people much easier. For business people, it provides various additional services for their convenience. In this article, the steps that need to be considered when opening a bank account it is outlined .
Steps in Opening a Bank Account
Before opening a bank account, it would be beneficial if the person can browse the internet to find the various benefits offered by each of the banks, especially the interest rates for the deposited cash, draws, loan facilities, etc.
In some countries, the customer needs to open a bank account in a bank which is close to his/her residence. Then he/she is required to select an account (Savings Account, Current Account etc.) that is suitable for his/her requirements. If a person is doing a business of his own, it is better to open a current account as he can get the additional benefits like Overdraft facility, issuing cheques for the suppliers, etc. After selecting the account type, it is required to provide the personal details of the individual. Then the bank asks the original documents that are required to prove the identity of the individual. After that it is required to deposit fixed amount in the account of the individual to create an account. Then a passbook and debit card is provided to the individual in order to provide the facility of withdrawing the money from an Automated Teller Machine (ATM) at any time of the day.
Benefits of Bank Accounts
Bank accounts can be helpful for the people in many ways. Through bank accounts, the customers can pay their bills using their debit card. Especially the utility bills like telephone bills, electricity bill, water bills can be paid using the bank account. At any time during the day, the customers also having the convenience of making withdrawals and deposits through their debit cards. In addition, if the customer is having a large sum deposited in his or her account, he or she can acquire a loan from the bank. The customer can place a Fixed Deposit with the money in his/her account and then a certain percentage can be taken as a loan for their personal usage.
For the businessmen, it is highly beneficial to maintain a bank account. They can transfer their money from one account to another when doing the payments. It is highly safe, save their valuable time and provide convenience for them. When there is not enough cash in their accounts the bank provides the Over Draft facility for the cheques without returning them. Therefore, when moving with the modern competitive business environment, maintaining bank account is essential as it is beneficial to the individuals in many ways.