Imagine a life without a bank account! It will be so tough to manage your money and keep it safe. Also, you may not be able to save them or keep track of your expenses.
Thus, having a bank account these days is a must and is one of the best ways to ensure the security of your money. Also, you can earn interest on your deposits, which is a great way to grow your money over time.
Due to the boost of cashless and digital banking in India, having a bank account has become a must. You can open a bank account at any number of banks. Your needs and bank account features should guide your choice.
This post will discuss in detail everything you need to know while opening your bank account.
How to open a bank account in India?
In India, users need to meet specific criteria to open a savings account.
- You must be an Indian citizen.
- You must be at least 18 years old.
- For a minor, both parents or guardians must give consent.
- You must have ID proof.
- You must deposit money into the bank account.
These documents are needed by all Indian banks when opening a bank account:
- An ID proof (passport, driver’s licence, etc.)
- An address proof.
- Two recent images in passport size.
Reasons to open a bank account
Bank accounts help you collect and save your money. It keeps your money safe, and you can use it anytime. These days, bank accounts offer several perks and features to the account holders, like net banking, mobile banking, ATMs, and credit card perks, making them more popular among people. It is a vital and useful way of saving money and keeping track of the same.
Different Types Of Banks In India
There are various types of banks made for multiple classes of people in India, giving huge perks to them. These banks try to meet the needs of people from all walks of life in India so that they can use banking services easily and comfortably. Bank customers in India can choose where they wish to have an account as per their needs and the perks offered by the bank. This section briefly discusses the types of banks in India.
- Central Bank
- Co-operative Bank
- Commercial Banka. Tier 1 (State Level): State Co-operative Banksb. Tier 2 (District Level): Central or District Co-operative Banks c. Tier 3 (Village Level): Primary Agriculture Co-operative Banks
- Public sector banks
- Private sector banks
- Foreign Banks
- Local area banks
- Payments Banks
Different Types of Bank Accounts in India
The six types of bank accounts are given below:
- Savings Account
The most widely used bank account in India is a savings account, which lets you deposit funds and usually earns a moderate interest rate. It is one of the safest ways to keep your money in a bank and make more money. The easiest way to earn interest on money lying in banks without being used is through savings accounts. You can deposit, transfer, take loans, or fix your money from a savings bank account.
- Current Account
A current account is a business bank account that transfers funds across several business bank accounts. These accounts are best suited for the day-to-day operations of businesses and their owners. You can overdraw your account with one of these types of accounts.
- Salary Account
Companies with a large staff often request this service from banks so they may pay their workers online. Each worker can quickly get a salary account where their employer deposits their monthly salary.
Anyone who has a job can apply for a salary account. It works just like a savings account, and you can receive funds in this account from other sources as well. Also, you can transfer money to other accounts, like a savings account.
- NRI Account
Non-resident Indians who wish to have a bank account here can do so by getting one of these accounts. The three types of NRI accounts are as follows:
(A) Non-Residential Ordinary Account (NRO)
(B) Non-Residential External Account (NRE)
(C) Foreign Currency Non-Residential Account (FCNR)
- Recurring Deposit (RD) Accounts
Users who want a safe place to deposit funds and earn interest use these accounts. These accounts are a very simple method to grow your wealth beyond what a savings account will provide. One can easily open an RD and deposit money there for six months to 10 years, during which the money will earn interest.
- Fixed Deposit (FD) Accounts
Deposits can collect interest in these accounts until they reach maturity. A fixed deposit is one of the most secure methods to save money and earn interest.
FDs are safe investments with above-average returns. Most banks in India offer a higher interest rate on fixed deposits than savings accounts and recurring deposits (RDs) because of the fixed duration benefit the bank obtains in the case of FDs.
You should first decide what type of bank account (savings, checking, recurring deposit, or fixed deposit) you want to open before moving further with the bank account opening process. A bank account can be opened in two main ways: online or in person. To open a new bank account, one can either visit a local branch and submit an application in person with all the required documents or go to the bank’s website and start the process there. Piramal Finance is an online platform that allows you to learn everything you need to know about bank accounts. For other facts about personal loans, credit cards, and financial management, check out more blogs on their website!