Opening a bank account has become relatively simple and easy with hassle-free online and offline banking services provided. The bank accounts for students allow them to make financial decisions and gain financial freedom. This also helps international students make wire transfers easily, manage money and use other banking services to their benefit.
However, you must submit various documents to the bank to open a bank account. In this blog, we will cover all the details about what you need to open a bank account, steps to open an account and various types of accounts.
Table of contents
Documents Required to Open a Bank Account
To open a bank account for students or an adult in India, the applicant is required to submit various documents. They must provide valid proof of identity and address. Here’s the list of documents you must keep ready while opening a bank account with any financial institution in India-
- Valid Passport
- Aadhaar
- Valid Permanent Driving License
- Voter ID Card
- Job card issued by NREGA duly signed by an officer of the State Government 6.
- Letter issued by the National Population Register containing details of name and address.
- Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
To open a student bank account in abroad country, you require the following documents and things-
- Valid Passport
- Proof of Address (on-campus/ off-campus agreement)
- Social Security Number
- Valid Phone Number
Why Open a Bank Account?
Opening a bank account not only keeps your money safe but also allows you to manage finances properly. It allows students to make financial decisions and achieve financial freedom. The following are some integral reasons to open a bank account:
- We all work hard to earn money and thus, want it to be safe from any sort of mishappenings. Banks all across the world aim to keep your money safe from any disaster.
- Keeping your money in a bank account protects it from fraud and scams. Banks have a high-tech security system that prevents any unauthorized access to the account
- With the system of online bank accounts, you can get your money in no time and save time for doing all the paperwork. Additionally, it does not cost any cashing fees as well
- Online bank accounts enable you to make easy and quick transactions. Using online banking at various platforms offers a number of discounts on transactions
- It keeps your transactions in check as they provide proof of payment on your monthly statements
Also Read: Comparing education loan interest rates is one of the best practices before applying for a loan with any lender. Compare the education loan interest rates of leading banks and NBFCs to find the best-suited lender.
Steps to Open a Bank Account
The process of opening a bank account may vary depending on the bank. There are approximately 12 public sector banks and more than 25 private banks in India. The following are the basic steps of opening any bank account:
Select a Banking Partner
There are plenty of banks that one can choose for opening an account. And with the advent of technological advancements, opening a bank account has become simpler and easier and can be done online. To open a bank account, you must first do your research about the banks, check out their fees, interest rates offered and minimum balance requirements.
Visit the Bank
Once you are done selecting a banking partner you will next be required to pay an in-person visit to the nearest branch or just visit their website using their app. Opening an online bank account is fairly easy where you would be required to just navigate to “products” and click on the “open a bank account” option
Application Form
Whether you are applying online or offline you will be required to fill out an application form to open a bank account. In the online application, you will be required to upload soft copies of the required documents and offline you would have to submit photocopies of the same
Documents Required
The following points are the solution to the question of what do you need to open a bank account:
- Identity proof such as a PAN card, passport or driver’s license
- Your address proof documents like passport, driver’s license or voter ID card
- If you do not have a PAN card you would be required to submit Form 16
- Two recent passport-size photographs
KYC Process
The full form of KYC is Know Your Customer which is a mandatory bank procedure that one must complete before they are allowed to open a bank account. In this process, you are required to verify your identity so the authorities are ensured you are who you claim to be. Therefore, some banks prefer to complete the KYC process via video to meet the requirements. If your bank also follows this procedure, then a bank official will connect with you over a video call. In the process, you will have to attend the call and provide all the details they ask for identity verification purposes.
Adding Funds
After your KYC is completed, the bank will send you the login credentials using which you can log into your online bank account. This step could take a few hours or a few days depending on your banking partner. Once you get the credentials, you can log in, add funds, and start your other banking activities.
Also Read: Check out the List of Nationalised banks in India, their details and how they work.
Types of Bank Accounts
There are different kinds of bank accounts with different features and benefits. It is important to know about the types to understand what suits the individual’s needs and requirements so that they can avail maximum benefits out of it. The following are some commonly preferred bank accounts:
- Savings account – it is one of the most common types of account that people prefer. This type of account enables you to put aside your savings and get interest on the amount when it is not being used.
- Checking account – this type of account is generally used for making and receiving payments
- Money market accounts – They sometimes earn more interest than a savings account and is used to keep debit and check writing options
- Certificates of deposit – They also earn more interest than savings accounts but, the condition is you would be required to lock up your funds for a certain period of time
AAlso Read: Having a gap after higher studies for entrance preparations or career building? Check out the details about obtaining a gap certificate for an education loan.
FAQs
The applicant required documents related to Identity proof such as a PAN card, passport or driver’s license. address proof documents like a passport, driver’s license or voter ID card, Form 16 (in case of no PAN card) and two recent passport-size photographs.
Some of the best banks for students are the Axis Bank Future Stars Savings Account, PNB Vidyarthi Savings Account, SBI’s Pehli Udaan Pehla Kadam, and Kotak Mahindra Bank’s Junior Savings Account.
The top government banks in India are the Central Bank of India, Indian Overseas Bank, UCO Bank, State Bank of India, Canara Bank, and Punjab National Bank.
It usually doesn’t take long. Bank accounts are opened in 30 minutes to 1 hour. However, the customer is required to make a visit to the bank branch in person (in case of opening a bank account online) which requires 2-3 working days in total for the banks to verify your details and open the bank account.
Different lenders have different amounts required to open a bank account with them. Some don’t ask for an immediate deposit while most of them ask somewhere between USD 25 to USD 100 to open a bank account. The requirement to maintain a minimum balance is also different for different institutions. It is best to visit their website and check for the details.
This was all about what you need to open a bank account. To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
