By John Schofield
The knowledge that people have about bank account is still quite backward compared to what is should be. Some people do not maintain their own bank records because they feel that it serves so good for them; others maintain one as a secure wallet of some sort, but not everyone really has a full grasp of it and this article aims to bridge the gap.
Why do people need bank accounts?
Handling your own cash is not exactly an easy thing to do. It is not safe to hold your own case because it will always be prone to theft and it can easily be lost in transit. It is also important to keep you money in the bank because maintaining a cheque has a number of advantages. Cheques are the most important requirements when you are trying to make transactions. Maintaining a saving account alos offer a convenient way to make cash transactions; so you do not have to physically handle a bug sum of money at any time. Keeping your own account, checking or savings is important because many establishments now require one to finalise transactions. In fact, there are certain transactions that you cannot pay in fully in cash; it is often required for people to pay their tuition fees, insurance premiums and other transactions via their banks.
There are also other uses for bank accounts other than to hold your cash. Nowadays, most companies forward income in form of cheques and not cash anymore. Most banks would require that you have an account with them in order to avail of the cheque facilities; therefore it is always useful to maintain your own bank account, just in case.
How do you open a bank account?
You can have two types of accounts: a savings or a current account. A savings account is good for anybody and a current account is best for business owners who make transactions right and left. You will have to present in the bank to open an account, and you need to fill out the countless forms. You will need to submit some proof of identification: a driver’s license, college identification card, passport or voter’s identification card; and you also need to bring a proof of residence in form a ration card or an electricity bill. Some bank require for the applicant to make a minimum initial deposit, so do ask if your bank of choice has this kind of requirement first so you are prepared.
What should you know about maintaining an account?
— Mode of holding. This is a decision that you need to make right from the start. Do you wish to maintain a personal account, just for yourself or is a joint account? You can also opt for an either/or account that can be controlled by two individuals.
— Types of accounts. Beginners are usually best to start with a ‘no frills’ account; but there are so many other types of accounts that you can explore in the future.
— Nominaton. In case of emergency, you fill out this portion to facilitate easy transfer of your money to your family members.
— Minimum balance or AQB Requirement. This is a balance that you need to maintain.
— Charges
— Choice of bank
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Source:
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