Facts You Should Know About Bank Accounts

Posted by Arjit Chalmela on December 2nd, 2020

Everyone owns different types of accounts. It is a place where you park your savings and withdraw them as and when needed. Such accounts pave the path for us to use these savings in a way that helps build our corpus. Banks also offer many complimentary services with the account.

If you are opening bank account online, here are some facts you should be aware of –

Opening of account

Many prefer opening their accounts the traditional way, i.e. offline. They fill the application form and submit documents like ID and address proofs for the same. You also need to get introduced to a specific bank by someone who already holds the account there. While most prefer opening their accounts the conventional way, mostly banking happens online nowadays. You go to the portal, fill the form thoroughly, upload the documents, and get instant access to the account.

Different types of accounts

Those who seek to open a bank account can choose from a wide range. While many know about the standard current and savings account, it is essential to understand you can choose from a wide range of these accounts. For instance, under savings account, you can open joint, women, senior citizens, minor, zero-balance, and other such accounts. NRIs have options like NRE, NRO, FCNR, and RFC.

Facilities

The services offered depend on the type of account you choose. Generally, all account holders receive necessary facilities such as ATM and debit cards, net, and mobile banking access. A few banks also offer Demat Account to their consumers, thus enabling them to invest in the share market instruments. The senior citizens and HNIs with more assets get door-step facilities, where the bank representative offers cheque collection and deposit service.

ATM, debit, and credit card services

Opening bank account online comes with a bank kit which includes net banking details and ATM or debit card. You can use them for withdrawing funds from the ATM of yours or other banks. If it a debit card, you can use it for paying online expenses and at retail stores too. While the bank offers ATM or debit card when you open the account, you need to apply for the credit card, if required. The bank evaluates the expenses and then decides whether to allow a credit card or no.

Other factors to check

As stated, most prefer visiting the bank closer to their vicinity when they want to open an account. But there are many things to consider, such as selecting the first option available. With so many banks undergoing a crisis, it is essential to consider the financial health of the bank. Check their debts and liabilities. Consider the number of ATMs and online services offered along with daily cash withdrawal limits.