Define Bank Account –
A bank account basically a terms which is given to a record maintained by the bank or other financial institution which has the record of the financial transactions between the bank and the customer. The terms and condition of such accounts are set up each financial institution as per them.
There are different types of accounts- Deposit accounts, current account, savings account, loan accounts are the some of the types of the account. Customer can have more than one account. Majority of the banks now provided zero balance accounts which means customer will not face any form of financial penalty even if their account balance comes to zero. This feature is basically provided in corporate salary account. Some banks wants customer to maintain certain minimum balance in their accounts. If the account balance goes lesser than that, then they enforce penalty on the customer.
How to open a Bank Account?
Opening a bank is also very easy. Applicant needs to fill the application form and provide documents like pan card, identity proof, address proof and then has to make initial deposit to get their account started. Banks tend to provide multiple features to customer post opening the account. Banks do provide cheque bank, ATM card, and debit card, net banking feature to customer post the opening of the account.
Once the account all the financial transactions get recorded in the bank account. Customer can view the transactions in the bank passbook. Current account is usually used for business owners, traders and entrepreneurs. They hold more liquid transaction with no limit on the number of transactions allowed per day. This account provides overdraft facility meaning customer can withdraw more money than the amount left in the account. But these are zero interest accounts and customers has to maintain minimum balance in these accounts.