A modern economy cannot grow with a proper and robust banking network. This fact alone is adequate to reflect the importance of banking in a country. However, a strong banking sector cannot function without the participation of the people. Therefore, this article will provide you information about local banking so that you can open a bank account without any hassle.
Opening a bank account is simple and easy and you can choose any local bank you want. However, it is important to obtain complete bank information before choosing your preferred bank. Your choice of local bank should depend on the services you want and the cost of those services. Moreover, it is equally important that you evaluate your needs and determine which type of bank account you want.
Here are all the details pertaining to opening a bank account:
Documents Required for Opening a Bank Account
If you want to open an account, you need to gather all the required documents. The documents required for opening a new bank account depend upon the type of bank account, which may vary from bank to bank. For a basic current account, you only need two documents including a copy of your CNIC and proof of your job/source of income. On the other hand, the documents required for opening a corporate account include all business-related documents such as articles of association, business license, NTN, a stamp of the company, etc. For opening a savings account, you only need a copy of your CNIC and proof of your source of income.
Types of Accounts
There are different types of bank accounts, which you can choose according to your requirements. The most popular bank account types are:
- Current Account
- Savings Account
- Business Savings Account
- Joint Investment Account
Current account is the preferred type of account for people who wish to transact frequently. The best current account is the one that offers its holders the freedom to regularly transact. With current account, you can deposit or withdraw the amount at any point of time without prior notice. Also, this account is suitable for making payments to creditors through cheques. This type of account comes with mobile and internet banking facilities.
Another popular type of bank account is savings account. With this type of account, you receive interest on the money deposited in the account. This type of account offers modest interest rates as compared to fixed/term deposits. With different types of savings accounts available, you can choose the one according to the interest rates and the minimum balance requirement. A flexible savings account helps you to save, as well as, spend. Different banks offer different interest rates and have varied minimum balance requirements. Based on the interest rates offered and the balance in your account, your profits are calculated.
Business Savings Account
Business savings account are not much popular in the local market. Businesses usually prefer business current account over business savings account, as it offers them much more freedom and offers features such as unlimited transactions (deposits and withdrawals) and no minimum balance requirement.
Joint Investment Account
With joint investment account, two people can operate one account. CNICs and signatures of both the individuals are submitted to the bank at the time of account opening.
In order to find the best savings account and the best current account, make sure you go through all the requirements of opening and maintaining the account prior to making a final decision.
When comparing savings accounts with current accounts, people prefer the latter. One of the main reasons behind this is that taking/accepting interest is ‘haram’ (prohibited) in Islam. Other reasons include freedom of use and no transaction limit.
Benefits of Current Account
A current account offers various benefits including:
- Faster and trouble-free access to cash.
- Electronic payment.
- Checkbook facility for non-cash payments.
- Management of usual payments like expenses and wages.
- Easy money management online.
- With current account overdraft facility, you can fulfill all your financial needs without any hassle.
How to Open a Current Account?
- You can open a current account by downloading the current account application form from the bank’s website.
- Fill the form and submit the required documents along with your online request.
- Once your application is approved, you will receive a debit card through which you can easily perform cashless transactions.
Benefits of Savings Account
A savings account offers the following benefits:
- With an individual savings account, you can actually earn interest on your savings.
- You can access your savings easily in case you need money.
- With a savings deposit account, you can earn interest on a periodic basis i.e. you will receive interest at the end of every month/quarter/six months (as agreed by you and the bank).
- Another savings account advantage is that you can open a child savings account as well.
- An education savings account can be set up to help you save money for your child’s education.
With accurate savings account information, you can choose an account that is suitable for your saving needs.
How to Open a Savings Account?
- You can also open a savings account by downloading the savings account application form from the bank’s website.
- Fill the form and submit the required documents along with your request to the bank.
- Once your application is approved you can start saving money.
Now that you have all the required information related to opening a local bank account, make sure that you make the right decision, and open an account that best suits your needs.