The day when individuals could physically see all of their savings and money stashed away in their homes or lockers is long past. As the bulk of transactions now occur online and all financial affairs are handled digitally, having a bank account has become a necessity in people’s life. People can safeguard their hard-earned money in bank accounts and invest it for returns. Opening a bank account is a simple process, whether done online or in person. Nevertheless, choosing the best bank and kind of account requires the most time since many factors must be taken into consideration before opening a new bank account.
Let’s look at the steps to follow to open a bank account
1. Choose The right banking partner
To open a bank account, the first step is to select the best banking partner for your requirements and preferences. One must ensure that a few factors are taken into consideration while shortlisting the banks. You’ll want to maximise the interest earned on your account balance if you’re intending to open a savings account. For this, keep an eye out for banks with higher interest rates that will enable you to make greater profits.
The minimum balance requirements established by particular banks are yet another significant factor to take into account. Certain bank accounts could have a minimum balance requirement, while others might have a zero balance requirement.
Banks will charge you a penalty if you don’t maintain the minimum balance required by the terms and conditions. Moreover, banks also impose charges on a variety of items, including overdraft fees, normal service costs, and ATM fees. You must consider all of these aspects before choosing the right bank.
2. Visit the Bank or go to their Website/ App
Once you’ve chosen your banking partner, visit their branch or go to their website. If visiting in person, navigate yourself to the counter and ask for the form and process of opening a new account. If doing so online, go to the relevant section and click on the option to open an account.
3. Fill out the Application Form
Here is where you provide your basic information, which will include your name, date of birth, email address, phone number, and so on. Complete the form accurately, then submit it.
4. Submit the Necessary Paperwork
You must attach copies of the necessary documents after duly completing the application form. This list may vary somewhat from one bank to another. You might have to self-attest the copies of your documents before submitting them according to the requirements of certain banks. Here are some of the mandatory documents that must be included in the necessary paperwork:
1. Aadhaar card
2. Proof of identity and address – PAN card, driver’s licence and passport
3. Form 16 (required only if the individual does not have a PAN card)
4. Most recent passport-size photographs
Some banks may require you to self-attest your documents before submitting them online.
5. Complete KYC Process
Know Your Customer (KYC) must be completed online through a video call in the event the account was opened online. One will need to confirm their identity and make sure they are who they say they are to proceed.
6. Make an initial deposit
The customer must physically visit the bank and make an initial deposit following the bank’s regulations once the account is opened. After the verification procedure, a passbook and chequebook will be provided.
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