The first question that arises in the minds of the salaried employees is what to do with the left-over cash from their first income. Should I invest them in the form of fixed deposits or mutual funds or the stock market? Should I deposit them in a bank account that is easily accessible? If you know you might require the funds at the time of emergency or for day-to-day usage; then bank accounts are the ideal option.
However, it is not just depositing money and withdrawing them. You have to prepare a bit and give it some thought. Banks in India offer different types of bank accounts such as savings, current and salary. There is also a bank account for various segments like women, children, senior citizens and NRIs.
The bank jargons are not as intimidating as they may seem to be. Following are the steps to open a bank account in India:
1) Eligibility: You have to fulfil specific bank terms and conditions before opening an account. Some of the criterions are:
- You must be an Indian citizen
- You must be 18 years old and might require your parent’s signatures as a consent
- You should have a minimum amount of money to invest in the account. The amount could vary from bank to bank
2) Banks: Not all banks follow the same principle when it comes to bank accounts. Ensure to seek information from your local bank to understand the type of account they offer, their features, etc. You could also know from your elders which bank follows a hassle-free application process. Banks are generally categorised as large chain banks and the local ones. The large chain banks are spread out in different cities and towns. The local ones are known to offer personal and human experience. They tend to be friendlier.
3) Bank account: Now, select the type of bank accounts you want to invest in. They could be either current or savings. Each of these accounts boasts of various characteristics. A current account is useful if you will need cash for daily purchases. A savings account comes handy during a medical emergency or for fulfilling your long-term goals. You can also check the aspects of such accounts online before approaching the bank.
4) Documents: You need to have your files in place if you want the application to get approved immediately. The essential ones are:
- PAN card, Aadhaar, passport, driving license, voter’s ID, ration card, etc. These are used as your ID and address proofs
- You also have to furnish your employment details like payslips, ITR papers, etc.
- Application form
- Recent photographs
5) Open the account: Visit the bank branch and open the account. Those who are opening an account for the first time should visit the bank and get it done. The advantage of doing so is that you can clarify your queries instantly. The bank representative also approves your application quickly. Depending on the type of bank, you can also open bank account online or over the phone. By opening the account online, you can scan and upload the documents. If you open it via phone, the bank representative collects the papers.
6) Account essentials: Once the bank approves your application, they will send you all the papers related to your bank account such as debit card PIN, your bank account number, etc as a part of the kit. If you find any error in any of the details, contact your bank representative right away.
Follow these 6 simple steps and streamline your finances today!
However, it is not just depositing money and withdrawing them. You have to prepare a bit and give it some thought. Banks in India offer different types of bank accounts such as savings, current and salary. There is also a bank account for various segments like women, children, senior citizens and NRIs.
The bank jargons are not as intimidating as they may seem to be. Following are the steps to open a bank account in India:
1) Eligibility: You have to fulfil specific bank terms and conditions before opening an account. Some of the criterions are:
- You must be an Indian citizen
- You must be 18 years old and might require your parent’s signatures as a consent
- You should have a minimum amount of money to invest in the account. The amount could vary from bank to bank
2) Banks: Not all banks follow the same principle when it comes to bank accounts. Ensure to seek information from your local bank to understand the type of account they offer, their features, etc. You could also know from your elders which bank follows a hassle-free application process. Banks are generally categorised as large chain banks and the local ones. The large chain banks are spread out in different cities and towns. The local ones are known to offer personal and human experience. They tend to be friendlier.
3) Bank account: Now, select the type of bank accounts you want to invest in. They could be either current or savings. Each of these accounts boasts of various characteristics. A current account is useful if you will need cash for daily purchases. A savings account comes handy during a medical emergency or for fulfilling your long-term goals. You can also check the aspects of such accounts online before approaching the bank.
4) Documents: You need to have your files in place if you want the application to get approved immediately. The essential ones are:
- PAN card, Aadhaar, passport, driving license, voter’s ID, ration card, etc. These are used as your ID and address proofs
- You also have to furnish your employment details like payslips, ITR papers, etc.
- Application form
- Recent photographs
5) Open the account: Visit the bank branch and open the account. Those who are opening an account for the first time should visit the bank and get it done. The advantage of doing so is that you can clarify your queries instantly. The bank representative also approves your application quickly. Depending on the type of bank, you can also open bank account online or over the phone. By opening the account online, you can scan and upload the documents. If you open it via phone, the bank representative collects the papers.
6) Account essentials: Once the bank approves your application, they will send you all the papers related to your bank account such as debit card PIN, your bank account number, etc as a part of the kit. If you find any error in any of the details, contact your bank representative right away.
Follow these 6 simple steps and streamline your finances today!
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