A Bank Account is a term given to a record maintained by the bank or other financial institution that records the financial transactions between the bank and the customer. Each financial institution sets up the terms and conditions of such accounts.
There are different types of accounts-
- Deposit accounts
- Current accounts
- Savings accounts
- Loan accounts
Customers can have more than one account. Most banks now provide zero-balance accounts, meaning customers will not face any form of financial penalty even if their account balance is zero. This feature is offered in the corporate salary account. Some banks want customers to maintain a certain minimum balance in their accounts. If the account balance exceeds that, they enforce a penalty on the customer.
Opening a bank is also very easy. Applicants must fill out the application form, provide documents (for Indian banks) like Pan Card, identity proof, and address proof, and then have to make an initial deposit to get their account started. Banks tend to offer multiple features to customer post opening an account. Banks provide cheques, ATM cards, and net banking features to customers post the report’s opening.
On this account, all the financial transactions get recorded in the bank. Customers can view the transactions in the bank passbook. The Current Account is usually used for business owners, traders, and entrepreneurs. They hold more liquid transactions, limit the number of transactions allowed per daily account, and provide an overdraft facility, meaning customers can withdraw more money than the amount left in the report.
But these are zero-interest accounts, and customers have to maintain a minimum balance in these accounts.
Featured Image Credit: Fisdom
