Opening a bank account is the first step to be able to save money and make use of banking services such as ATMs, cards, Internet Banking, and Mobile Banking, for example.
Opening a bank account can involve the following three steps:
STEP 1. Before opening a bank account
You are encouraged to shop around and consider the various types of bank accounts provided by banks, notably by browsing through their websites or, if you prefer, by visiting some of the bank branches in your locality for more information.
STEP 2. Identifying the type of bank account you need
There are three types of bank accounts which are commonly offered: current, savings and deposit.
- Current account
A current account is a bank account that allows you easy access to your money. Also called a transactional account, it is the account that people may use to transact, for instance bills payment. It does not usually carry interest. Can have a debit card linked to it.
- Savings account
Having a savings account is a good way to keep your money if you do not plan to spend immediately. Your money is available to be withdrawn whenever you need them. It can also be a means of setting aside your savings to reach longer-term goals. For instance: financing your children’s future education or traveling. It can have a debit card or a credit card linked to it. Usually bears interest.
- Deposit account
A deposit account requires you to keep your money untouched for a set period of time. The longer you agree to leave your money, the more interest it will earn. You cannot add funds to the deposit during this time. You cannot withdraw the funds on the deposit account without prior notice. (This would be likely to be subject to a fee if you are removing funds before the maturity of the deposit).
STEP 3. Completing the Know Your Customer (KYC) procedure
Finally, before opening a bank account, you will be asked for documents that prove your identity and also prove your address. These are also commonly known as the Know Your Customer (KYC) procedure of banks.
It is very important for you to provide for the KYC information requested by your bank so that your account is opened as quickly as you would wish. The KYC process is mandatory for all banks to follow.