Introduction to Bank Accounts
A bank account is a financial account maintained by a bank or financial institution for a customer, allowing them to deposit and withdraw money, and conduct other financial transactions.
Bank accounts are essential for:
- Saving money safely
- Receiving salary or government subsidies
- Online shopping and transactions
- Getting debit/credit cards and loans
Types of Bank Accounts
a) Savings Account
- For saving money
- Earns interest
- Limited free transactions
b) Current Account
- For businesses
- Unlimited transactions
- No interest (usually)
c) Fixed Deposit (FD) Account
- Money locked for a fixed time
- Higher interest than savings
d) Recurring Deposit (RD) Account
- Fixed monthly deposit
- Returns with interest after tenure
e) Salary Account
- Special savings account for salaried employees
- Auto-conversion to savings if salary is not credited
f) NRI Account (NRE/NRO)
- For Non-Resident Indians
- Allows easy money transfer between India and abroad
Importance of Having a Bank Account
- Ensures financial security
- Helps in savings and investments
- Useful for online transactions
- Enables loan eligibility
- Required for government schemes
Documents Required to Open a Bank Account
- Aadhaar Card (Proof of Identity)
- PAN Card (Tax ID)
- Passport-size photographs
- Address Proof (Electricity Bill, Passport, Voter ID)
- Signature
Note: For minors, guardian details are also required.
How to Open a Bank Account
a) Offline Method
- Visit the nearest bank branch
- Fill the account opening form
- Submit KYC documents
- Deposit minimum balance (if required)
- Account gets activated
b) Online Method
- Visit the bank’s official website
- Choose “Open Savings Account”
- Fill the form with Aadhaar, PAN, mobile number
- Complete KYC via video or Aadhaar OTP
- Account is opened in a few minutes
Popular Banks in India
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Canara Bank
- Bank of Baroda
- Axis Bank
- Union Bank of India
- Kotak Mahindra Bank
Services Offered with Bank Accounts
- Debit/ATM Card
- Internet Banking
- Mobile Banking
- Cheque Book
- SMS Alerts
- UPI (Unified Payments Interface)
- Passbook
- Credit Card (based on account usage)
How to Use a Bank Account
a) Deposit Money
- Through ATM, branch, UPI or online transfer
b) Withdraw Money
- Using ATM, cheque, or withdrawal slip
c) Transfer Money
- UPI, NEFT, RTGS, IMPS, Cheques
Internet and Mobile Banking
a) Internet Banking
- Access through bank website
- Services: Balance check, transfers, bill payments
b) Mobile Banking
- Use apps like SBI Yono, HDFC Mobile Banking
- Fast, secure access to your bank account
How to Check Bank Account Balance
- SMS Banking
- ATM
- Missed Call Service
- Mobile App
- Internet Banking
- UPI Apps (like PhonePe, Google Pay)
Safety Tips for Using Bank Accounts
- Never share ATM PIN or OTP
- Avoid public Wi-Fi for banking
- Always logout after online banking
- Enable two-factor authentication
- Use strong passwords
Minimum Balance Requirement
Different banks have different minimum balance rules:
- SBI: ₹1000 to ₹3000 (based on location)
- HDFC: ₹5000
- Axis Bank: ₹10,000
Zero balance accounts are also available (e.g., Jan Dhan Yojana)
Bank Charges and Fees
- SMS alert charges
- Minimum balance penalty
- Cheque book charges
- ATM card charges
- NEFT/RTGS transaction fees (mostly free now)
Jan Dhan Yojana – Zero Balance Account
- Government scheme to promote financial inclusion
- Benefits:
- No minimum balance required
- Free RuPay Debit Card
- Accidental insurance
- Overdraft up to ₹10,000
- Direct benefit transfer (DBT) enabled
Savings vs Current Account
| Feature | Savings Account | Current Account |
|---|---|---|
| Purpose | For individuals to save | For businesses |
| Interest | Yes | Usually No |
| Transactions | Limited | Unlimited |
| Minimum Balance | Low | High |
Joint Accounts and Minor Accounts
- Joint Account: Two or more people operate together (e.g., spouses)
- Minor Account: For children below 18, operated by parents
FD and RD Accounts
- FD gives higher returns but money is locked
- RD allows you to save monthly with interest
Dormant and Inactive Accounts
- If no activity for 12 months = Inactive
- 24 months = Dormant
- Can be reactivated by submitting KYC documents
How to Close a Bank Account
- Visit branch
- Submit closure form with ID proof
- Return cheque book, ATM card
- Get final balance as cash/DD
Frequently Asked Questions (FAQs)
Q1: Can I open a bank account online without going to the branch?
Yes, most banks now support full digital KYC.
Q2: What is the best bank for a savings account?
Depends on location, features; SBI, HDFC, and ICICI are widely used.
Q3: Can I have multiple bank accounts?
Yes, you can open multiple accounts in the same or different banks.
Q4: What happens if I don’t use my account for years?
It becomes dormant. You must reactivate it with KYC.
Q5: What is CIF number in banking?
Customer Information File – it holds all your banking details.
Conclusion
Bank accounts have become an essential part of modern financial life. Whether you’re a student, employee, business owner, or homemaker — a bank account empowers you to manage, grow, and protect your money easily.
Choosing the right bank, understanding its services, maintaining security, and utilizing digital tools can help you make the most of your bank account in 2025 and beyond
