Open a New Bank Account Checklist: Everything You Need to Know

Open a new bank account For most individuals, a savings account is the primary mode of transaction with a financial institution or bank. It is a primary avenue to keep money safe and secure. However, the reason for opening a new bank account may differ from person to person. 

A few people open savings account to save money for the future, and some think about it as a different investment option. Whatever your reason, you can open a new account with any bank you choose. However, here we will discuss a few things you must check before opening an account. 

What Do You Need to Open a Bank Account?

The process of opening a bank account is quick and straightforward. After you visit your bank, they will give you an application form to fill in the necessary details. Also, you must carry the documents needed to open a bank account, like address proof and identity proof. All these documents are called KYC or Know Your Customer documents. 

List of Required Documents for Opening a Savings Bank Account

As mentioned, individuals must submit proof of residential address and identity when opening an account. Here, we list the documents you can submit as your KYC documents. 

Identity Proof

Before you open an account, you must know what documents you can submit to your bank as identity proof. So, here is the list:

• Aadhaar Card
• Passport
• Voter ID Card
• Driving licence (must be issued by RTA or Regional Transport Authority)
• Employee ID
• Photo ID proofs issued by the state or central government

Address Proof

Apart from the identity proof, you must submit the address proof so that banks can connect with you whenever needed. Also, you must submit the documents within three months after opening an account. Here is the list of documents you can submit as address proof.

• Utility bill (gas, electricity, telephone, water)
• Municipal or property tax bill
• Licence and leave agreement
• Recent bank statements
• Address verification certificate with the sign of gazetted officer

So, these are the documents needed to open a bank account. However, you do not need to submit all of them as you can select any of the above. Along with the documents, you must submit your latest photograph, KYC form, and application form. The best part is that many financial institutions or banks now allow their customers to submit all these documents via mobile app to offer more convenience to simplify the process. 

Things You Must Know Before Opening an Account

Before opening a bank account with any bank, you must check a few things to know whether you should proceed further or not. You must research before submitting any document to any bank or financial institution. So, let’s look at what you must check while opening an account. 

Interest Rate

The savings account offers lower interest rates than other investment options. It is so because people only choose it for its high-security features. Top and well-reputable banks generally provide 3% to 4% interest rates on savings accounts. But, many financial institutions offer even 6% or above. Though, there are other specific factors that you must take into account in this case. But, anyway, you should check the interest rate beforehand to calculate everything.

Minimum Deposit

The average balance requirement mainly refers to the average of every closing balance in your account every month. The requirement for one bank to another differs. Do keep yourself informed about it.

Know about the Credit Facilities

People find it simpler to take bank loans from the specific bank where they have their savings account. When you take loans from a bank, they go through your banking history. Therefore, a long-term and satisfactory banking relationship is an additional point when taking loans. 

Now, many banks even offer pre-approved and pre-qualified loans to select customers with excellent credit history. The loan application process also has become more straightforward, with less paperwork. Therefore, you must check whether the bank offers this facility to their customers in case you need a loan. 

Other Charges and Fees

Even though you may get excellent facilities and yearly interest after opening a savings account with a bank, you also need to pay for some services. Generally, every bank charges a specific amount when customers use a non-network ATM several times. Furthermore, there are many additional charges for deposit fees, transactional SMS, excessive checks above the limit, cash withdrawals, etc.

You must also pay an annual fee for credit cards, debit cards, lockers, etc. But, the charges vary depending on the banks. So, before you open a new bank account, you must check how much the bank charges for each thing mentioned above. It will help you save money. 

Customer Service

Checking the bank’s customer service is equally important because when you encounter any bank-related issues or need assistance related to your account, you get the service as soon as possible. So, choose a bank that offers customer care support that is prompt and helpful. Otherwise, there is no point in choosing a bank that does not provide the right service at the right time. 

Conclusion

Making the right choice when selecting a bank to open your savings account is crucial. It will help individuals to meet their financial goals without much hassle. If you are opening an account for the first time, consider keeping the points mentioned above in mind to make a sound decision.