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Opening a Bank Account

Why save in a Bank?

It offers high liquidity since you can withdraw your money anytime you want to.

Banks offer a number of useful services like debit card facility, cheque facility etc.

You can also choose a nominee who will claim the money after your death. Do you know that even the banks have their own bank who saves them in a financial crisis. Can you name it? It is RBI commonly called a bankers bank. 

Advantages of using a Bank account


It builds a habit of setting aside money. There are various types of bank accounts like fixed deposit, current deposit etc which a customer can choose based on his/her need.

A savings account can offer you a small profit on deposit for allowing a bank to use your money to make investments. In exchange, the bank will compensate you by paying you a small rate of interest.

In certain kinds of accounts, your money is placed in liquid money market funds, generating higher revenues. 


In simple language, Liquidity is how easily cash is accessible to you from your account. Eg: You want some cash from your account, simply go to a nearby ATM established by banks and withdraw the amount. This makes the bank a high liquidity entity.

It provides high liquidity especially when a person needs a ready pool of money for the emergency purpose. You can deposit or withdraw your money whenever you need and also send remittances through the bank.


It provides an identity which is recognized by various government institutions.


The bank transactions are very transparent in nature and you can keep a track of your transactions through your Passbook.


The money kept in a bank account is safe and is well regulated. Money that is kept safely in your home or on your person can be lost in a disaster, such as a fire or stolen. By contrast, up to a certain amount placed in a bank account is automatically insured against loss by the government. Even if the bank where you hold the account goes bankrupt or is robbed, your money is still safe.

Some Banking Jargons:

Deposit: Put money in bank

Withdrawal: Take money out of the bank

Balance: Money available in the account

Fees: Money charged for any service

Overdraft: Withdrawing more money than you have in your account

Which bank should I go to?

Your bank should meet your needs, so ask yourself:

  • What services does it offer?

  • Is it near my home?

  • Where are its ATMs (Automated Teller Machine)?

  • What are the fees for different accounts?

  • Is it insured by the RBI?

Steps to Open a Bank Account:

  • Choose your desired bank where you wish to have an account.

  • Visit the bank, and contact the customer service officer. (You can also apply for bank account through their app)

  • Submit account opening form where you give all your details.

  • Attach the required documents while submitting the form.

  • Bank officials will verify your details and documents.

  • Once your application is approved you’ll receive your debit card and internet banking credentials via post.

Let’s understand various bank job roles & their responsibilities in a Bank

Job Title

Roles & Responsibilities


Data entry, various paperwork.

Customer Service Officer

Look after all the customers’ issues, problems and provide banking services. 


Look after the money 

Relationship Officer

Look after the premium card holders.

Loan Officer

Helps to facilitate loan

Probationary Officer (PO)

Overall banking management

Branch Manager

The one who handles the operations of the bank. 

Note: Various banks have various counters and job roles. It may differ from bank to bank and branches as well. 

Savings vs Current Account

There may be times when you need to make multiple payments, receipts and other transactions, similar to traders and entrepreneurs. They need to access their accounts frequently and prefer using a Current Account for this. But what is a Current Account and how does it differ from a Savings Account? Here is a list to help you understand the difference between Current Account and saving account:




An individual

Usually an entity like a company, enterprise businesses & firms. 




Minimum Balance

Low minimum balance

High minimum balance

Overdraft facility




There is a limit

No Limit


Limited transaction

Unlimited Transaction  

  • Meaning 
    A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions.

  • Suitability
    A savings account is most suitable for people who are salaried employees or have a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently.

  • Interest
    Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account. A Current Account is actually a no interest-bearing deposit account.

  • Overdrawing
    When you withdraw more money from the account, than is actually there, then your account is said to be overdrawn. In the case of a savings account, banks neither offer nor allow overdraft facilities, whereas, this facility is provided with a Current Account.

  • Minimum balance
    The minimum balance required to maintain a savings account is usually low, but for a Current Account it is much higher in comparison.. This should clarify the differences in the purpose and function of Current Account and Savings Account.

  • Ownership

Mostly individuals make a savings account & companies, businesses make Current Account. E.g Ramesh will have a savings account(personal use) but his business Ramesh Hardware will have a current account.

Cash Deposit Slip:

(Note: Yes Bank’s format is being used only for reference purpose)

A cash deposit slip tells the bank the amount you wish to add in which account.

It is divided in two parts, one is kept by the bank and the other is a receipt given to you. 

You add simple details like Acc. Number, Cash Details, date, Denominations etc. and submit it along with the cash in deposit section at the Bank.


(Note: HDFC Bank’s format is being used only for reference purpose)

You get a Cheque book along with your debit card via post after successfully opening an account. Cheque is often used for payments, withdrawing cash or transferring amounts to another account. 

If someone issues you a cheque, you can deposit it in your bank and money will be credited in 2-3 working days.

You have to sign a cheque for it to be honored. But make sure your signature is the same as you did while opening a bank account. 

Understand the various parts of Cheque:

Understanding a Cheque

Theft & Protection

Banking is a process to ease our burden and financial transactions. But it is also backed with variety of scams and fraud

It is by the duty of the financial institutions to keep your personal details safe and it is mandated by Law. If there is any breach of security from the bank, they are liable for loss or compensation. 

Identity Theft: Identity theft is the crime where someone uses your personal & financial information to commit fraud. Eg. Like unauthorised transactions etc. 

Phishing: Fake emails of lottery or various new stories where they ask you for your personal information.

Pharming: Fake websites that look real and take your personal information. 

Few Things to remember: 

  • Never share your personal information.

  • If your aadhar card is linked to your bank, avoid sharing the aadhar number.  

  • Never share your account number with anyone except family members.

  • Keep your passbook and other essential documents safely.

  • Be cautious even in banks.


1) Who is a Nominee?

a) The person who will claim your bank account after your death.

b) The person who will claim your money in a bank account after your death.

c) The person who will pay your EMI after your death.

d) The person who will repay your debt after your death.

2) Who among the following is called a Bankers Bank?

a) SBI


c) Financial Institution

d) RBI

3) Which of the following is most likely to make a Current Account?

a) Anuj Realtor Pvt. Ltd. 

b) Radha

c) Aman

d) Gautam

4) Which of the following is not a benefit of Current Account?

a) Overdraft

b) No Withdrawal Limit

c) Limit on Deposit

d) Internet Banking

5) Which of the following is not a benefit of a savings account?

a) Availability for Kids

b) Interest Rate

c) Bill Payment

d) Unlimited Withdrawal