Money Magazine - Tips for those opening a Bank account for the first time

Bank account is engrossed in everyone life. Bank acts as a guard to your money which instead of charging some amount provides an interest on money deposited. Moreover, it facilitates various other services for daily requirements such as making payment on your behalf, keeping your valuables safe in the locker, etc. 

Opening a bank account for the first time requires few facts to be considered as preliminary steps:

Type of Account

Various types of accounts are available with various functions. A Current Account works differently from a Saving Account. Similarly, each account addresses different requirements and owns different conditions.

In India, there are typically four types of deposit accounts:

Saving Accounts - for general public and most popular one.
Current Accounts - for business purposes.
Recurring Deposits Accounts - kind of term deposit.
Fixed Deposits Accounts - term deposit.

The foremost step is to understand your requirements and deciding on the type of account you wish to open. E.g., for a businessman a current account is more suitable.

Minimum Deposit Requirement

Check for the minimum requirements for an amount to be kept in the account. Different banks with different minimum deposit requirements. Some have Rs.1000, some Rs.10000 and some offer zero balance account under special offer. Usually public sector banks hold less minimum balance as compared to private sector banks.  Furthermore, inquire about the fee that will be charged if the bank balance goes below the minimum requirement. 

Look for the Facilities and Fees

Check for the various fees charged by a banks such as ATM fee, charges for issuing extra cheque book, locker fee, etc. Also, look for the services available and at what cost. Actually, most banks offer similar kind of facilities but at different costs. So cost is the determining factor.  Visiting the banks’ websites could help a lot.
Few Facilities offered along with a bank account:

Electronic deposit of funds and printing of passbook.
Debit and Credit Cards.
RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer).
Over Draft and Cash Credit.
Online banking, Mobile banking, Home banking.
Payment of utility and other bills.
Advancing of various kinds of loan.
Credit instruments’ collections and payments.
Exchange of foreign currency.
Locker Facility.

The list is very long and you have to select the services as per your requirements and check out for their relevant costs.

Few handy tips:

Keep the account balance low in the beginning. Just for few days until a welcome letter from the bank is received.

Ensure that all the details mention in the bank statement are correct.

Documents required are identity proof, age proof, address proof, two recent passport size photographs, PAN Card (if any). Requirements for current account are more.

Take the original documents with you for verification of photocopies.

Double checkto ensure that all the required details are provided correctly.

Read all the terms and conditions carefully before signing.

At last,for opening a bank account… congratulate yourself!