What is a bank account and how to open it?

A bank account is an individual account for individuals or legal entities that allows you to perform various banking operations with non-cash funds, as well as store your finances in a bank. The client gets access to their account and can perform any operations with it.

Today, almost every citizen and organization has its own bank account, choosing a non-cash service, as it is more reliable.

The Bank can use the money held in your current account, and you have full guarantees of your right to manage your account. The bank may charge interest to your account for using your funds.

No one else will be able to debit any amount from your account. Only if your property is seized, a certain amount can be debited from your current account by a court decision.

A bank account is a guarantee that no one but you can get any information about it. The law allows exceptions when the banking structure can provide information on your current account to the courts, tax authorities, PFIs, etc.

Types of bank account

Existing types of accounts are regulated by law and are reflected in the relevant documents. To date, there is the following distribution::

• current accounts, which can be opened by individuals for normal cash flow operations.These accounts cannot be used for business purposes;
• current accounts can be opened by companies or sole proprietors for doing business;
• budget funds are available for low-cost enterprises and are used for various calculations;
• correspondent accounts are special types of accounts that are used in their activities by the banking structures themselves;
• trust management accounts are required for the trustee, are used in the course of its activities, and so on.

Any individual can have multiple accounts:

• current account – a regular account for performing various operations.It can be opened by any citizen who has reached the age of 18
• deposit – an account for deposits with interest;
• salary invoices are issued as part of salary projects between an enterprise and a banking organization.Employees receive a salary on them;
• a social security or pension account is an account where a person receives benefits or a pension;
• a savings account involves charging interest on the client’s cash balance;
• borrowed funds are credited to credit accounts for use by the client.

A legal entity can open a bank account for various purposes, hence the classification of accounts for companies and organizations:

• standard checking account used for accepting and transferring payments to counterparties;
• an organization can keep its free money in a deposit account and receive interest on it;
• a credit account is opened for crediting borrowed money;
• if the company’s activity involves accounting for foreign currency funds, a transit account is issued;
• a special account for purchases is available only in some authorized banks.

In addition, there are other types of bank accounts, and banks regularly offer their clients new options for banking support of their activities.

How do I open a bank account?

To open an account, a citizen should choose a bank, visit its office, provide the necessary documents (passport, TIN), write an application for opening a bank account, and sign an agreement.

Different banks have different requirements for opening an organization’s current account. Some financial institutions regularly hold special promotions aimed at attracting customers and offering to open an account with a minimum package of documents. Some banks may request a tax return if 3 months have already passed since the date of opening an individual entrepreneur.

A bank account offers special benefits

A current account in a bank structure is a stable and reliable company in the eyes of market participants. Having an account increases the status of the organization and increases the trust of investors, customers, and suppliers.

Cashless payments are a guarantee of security. In this case, you can be sure that no counterfeit money will fall into your hands and no unexpected cash situations will occur.

The presence of turnover on current accounts confirms the organization’s solvency for the bank. Having a current account with a bank, you can count on favorable credit conditions in this banking structure. In addition, there is no need to provide a set of documents for obtaining a loan.

Now you can perform all settlement operations online without visiting the bank. Deposits are made as quickly as possible, and if transactions take place in the same bank, then there is no commission at all.

Having a current account allows you to perform banking operations from anywhere in the world, the main condition is the availability of the Internet. You can also monitor your account status online, track and monitor all transactions.

As bonuses, banks offer their clients some additional services, for example, issuing bank cards for employees or making a salary project on favorable terms.

You need to choose a bank for opening a current account according to different criteria. First of all, it is recommended to determine the most important parameters for you. Almost every bank has its own nuances and pitfalls, so before signing the contract, you should check:

• reliability and guarantees of the banking structure;
• availability of acquiring services and SBP;
• pricing plans;
• customer experience level;
• efficiency and comfort of service;
• credit policy;
• options for working with cash and more.

A competent choice of a banking organization for further cooperation is a guarantee of your peace of mind and comfortable work.