How to Open A Bank Account in India Step by Step

In How to  |  Last Updated on Tue, 16 Feb 2021

A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded. A customer may have more than one account.



 

Banks in India have four types of deposit accounts

 

Current Accounts

A Current account can be opened in most commercial banks. A current account being a zero-account, is generally associated with huge transactions on a regular basis.

Saving Banking Accounts

Savings accounts offered by most banks, credit unions, and other financial institutions are FDIC insured and typically pay interest on your deposits. There are 3 different types of saving accounts the deposit account, the money market account, and the certificate of deposit.

Recurring Deposits

A recurring deposit is a special kind of term deposit offered by banks that help people with regular incomes to deposit a fixed amount every month 

Fixed Deposits

A fixed deposit is a financial instrument that provided banks a higher rate of interest than a regular savings account.

 

How to Open A Bank Account Step by Step

Step 1: Choose your bank you want to open your bank account.

Step 2: Visit the bank branch or website- after choosing your bank then visit the bank branch or their website properly
 
Step 3: Decide what kind of account you need
 
Choose a savings account if you’re looking for a place to save money over a short period of time, but still, keep it readily accessible. Choose a chequing account to keep money that you plan to use for day-to-day spending or to pay bills over the short term. You’ll earn less interest than with a savings account.
 
Step 4: Look for an account with the services you’ll use most
In particular, think about how you’re likely to put money in and take it out:
 
Branch: Make deposits and withdrawals using a teller or ATM.

Debit Card: Buy something or get cash at a store.

Cheques: Pay bills.

Direct Debit: Pay bills automatically from your account each month.

Direct Deposit: Have your pay put into your account.

Internet or telephone banking: For a range of transactions.
 
Step 5: Shop around to compare rates and fees
 
Understand the service fees you can be charged before you open an account. Look for accounts that charge the lowest fees for the services you need. And compare interest rates. They will vary across financial institutions.
 
Step 6: Choose a financial institution and location
 
Choose one that has branches or bank machines located close to where you live or work.
 
Step 7: Open your account
 
You’ll have to give personal information such as your address, date of birth, social insurance number, job title, and phone numbers when you complete the account application. You’ll also need to show 2 pieces of acceptable identification. One of them must be from the government. Then make your first deposit.
 
 

Documents Required for Opening Bank Account

• A filled-up application form.
• Identity and address proof such as valid passport, Voter ID card, PAN card, permanent driving license, Aadhar card.
• Employment Proof.
• Latest passport size photographs.