Nowadays almost everything related to money is connected with banks be it fund management, investment, transaction and loans. Bank systems and services have gone through a significant change with online payments and cashless transactions. Opening a bank account also has become relatively easy and simple. This has exempted customers from going through the hassle of visiting banks in person, standing in queues and long waiting hours. And if you are also wondering about opening a bank account and what do you need to open a bank account, continue reading the blog to find out!

Why Open a Bank Account?

The following are some integral reasons to open a bank account:

• We all work hard to earn money and thus, want it to be safe from any sort of mishappenings. Banks all across the world aim to keep your money safe from any disaster. 
• Keeping your money in a bank account protects it from fraud and scams. Banks have a high-tech security system that prevents any unauthorized access to the account 
• With the system of online bank accounts, you can get your money in no time and saves time for doing all the paperwork. Additionally, it does not cost any cashing fees as well
• Online bank accounts enable you to make easy and quick transactions. Using online banking at various platforms offers a number of discounts on transactions
• It keeps your transactions in check as they provide proof of payment on your monthly statements

Also Read: List of Banking Courses After 12th

Steps to Open a Bank Account

The process of opening a bank account may vary depending on the bank. There are approximately 12 public sector banks and more than 25 private banks in India. The following are the basic steps of opening any bank account: 

Select a Banking Partner

There are plenty of banks that one can choose for opening an account. And with the advent of technological advancements, opening a bank account has become simpler and easier and can be done online. To open a bank account, you must first do your research about the banks, check out their fees, interest rates offered and minimum balance requirements. 

Visit the Bank 

Once you are done selecting a banking partner you will next be required to pay an in-person visit to the nearest branch or just visit their website using their app. Opening an online bank account is fairly easy where you would be required to just navigate to “products” and click on the “open a bank account” option

Application Form 

Whether you are applying online or offline you will be required to fill out an application form to open a bank account. In the online application, you will be required to upload soft copies of the required documents and offline you would have to submit photocopies of the same

Documents Required 

The following points are the solution to the question of what do you need to open a bank account:

• Identity proof such as a PAN card, passport or driver’s license 
• Your address proof documents like passport, driver’s license or voter ID card
• If you do not have a PAN card you would be required to submit Form 16 
• Two recent passport-size photographs

KYC Process

The full form of KYC is Know Your Customer which is a mandatory bank procedure that one must complete before they are allowed to open a bank account. In this process, you are required to verify your identity so the authorities are ensured you are who you claim to be. Therefore, some banks prefer to complete the KYC process via video to meet the requirements. If your bank also follows this procedure, then a bank official will connect with you over a video call. In the process, you will have to attend the call and provide all the details they ask for identity verification purposes.

Adding Funds 

After your KYC is completed, the bank will send you the login credential using which you can log into your online bank account. This step could take a few hours or a few days depending on your banking partner. Once you get the credentials, you can log in, add funds, and start your other banking activities. 

Also Read: List of Nationalised bank in India

Types of Bank Accounts 

The following are some commonly preferred bank accounts:

• Savings account – it is one of the most common types of account that people prefer. This type of account enables you to put aside your savings and get interest on the amount when it is not being used.
• Checking account – this type of account is generally used for making and receiving payments
• Money market accounts – They sometimes earn more interest than a savings account and is used to keep debit and check writing options
• Certificates of deposit – They also earn more interest than savings accounts but, the condition is you would be required to lock up your funds for a certain period of time

Also Read: How to Build a Career in Investment Banking?

FAQs

This was all about what do you need to open a bank account. Visit Fly. Finance to know more about such topics.