Documents required to open a bank account

Ever heard of someone without a bank account? Unlikely right? Generally, most individuals have a bank account - whether you’re a working professional, a student, or someone working in the unorganised sector. Banks are considered one of the safest places to store one’s hard earned money.

Opening a bank account is the first and the most important step in planning and securing a safe future for yourself. There are mainly three types of accounts, i.e. savings, current and fixed deposit. These accounts can be opened either online or offline by visiting the nearest bank branch.

Some features of bank accounts are -

• Save money: Banks offer good interest rates and this can help grow your funds over time. Some banks also offer to create automatic fixed deposits if the balance exceeds a certain limit.
• Convenience: With digitisation, banks provide a host of services that can simplify life considerably. Online transfers, UPI transfers, net banking, cheque pay, bill pay have now made money transactions much easier.
• Safety: Bank money is insured and well-protected by theft or natural calamities. It is the safest option than to stack in the corners of your house.
• Cheaper alternative: Most banks now charge no money to open an account. However, even if they do, it is much cheaper than any other alternatives to save money. And not just that, they offer a lot of convenience to the customer at a minimal fee.
• Offer credit: A bank account can lead to access credit service like home loan, car loan, student loan. Banks prefer existing customers and offer loans at decent rates, compared to external moneylenders that can turn out to be expensive.

Before you open an account, it is important to be aware what type of an account you’d like to open. Choose from -

• Current Account - a deposit account where an individual needs to carry out a high number of transactions with the bank regularly.
• Savings Account - a deposit account where an individual needs to carry out a limited number of transactions with the bank.
• Fixed Deposit Account - this is a deposit account where the bank provides a fixed rate of interest until a maturity date.

With digital technology and better integration across branches, opening a new account in a bank has become a one-day job. It's streamlined and easier now than ever before. If you plan to open a bank account today, you must have a handy checklist of documents required, follow the simple and easy steps and voilà, you are on your way to the first step of securing your future.

So, what do you need to open up a bank account? Listed below are the documents required for bank account. Most banks require these documents, over and above any specific requirements.

List of documents required for Bank Account

Two kinds of documents are required to open a bank account - identity proof and address proof. Since the bank’s home branch is where all your transactions will be directed from, the proofs serve to identify your age and residential address. Listed below are the types of documents that serve as identification and address proof, and any one of these can be submitted while opening a bank account.

Proof of age and identity:

1. PAN card - this is a card issued by the government with your unique PAN number and is unaffected by any change of address. Ensure that PAN and Aadhaar are linked. Last date to link Aadhaar card with PAN card is 31st March 2022.
2. Aadhaar card - This is now the single most offline /online identity verification across the country. Visit UI DAI to know more about the Aadhaar process.
3. Voter ID - This is also an identification document issued by the Election Commission of India to adult citizens of the country.
4. Passport - This too is an authoritative document issued by the national Government to citizens that require identity proof while traveling abroad.
5. Driving license - this is an important government issued document in India that provides citizens with the permission to drive as well serves as an identity proof.
6. Employee ID - The employing company’s ID also serves as an identification proof for submitting in the bank.
7. Any photo ID card- this is issued by the Central/State government and this could include a birth certificate or identity certificate issued by the government for stateless people etc.
8. NREGA job card - this card allows individuals from rural homes to apply for paid work with their local Gram Panchayat.

Residential proof

In simple terms, residential proof is a proof of where you live. The criteria for a valid address proof are:

• It should be issued in your name and correspond to your government-issued ID.
• Your current residential address must be included in the proof of address.
• A recognised authority must send the paperwork, which must include their logo, name, and contact information.
• It is necessary for your proof of address to be properly dated. Banks often want documents to be dated within the last three months. However, this regulation can vary based on the bank and the sort of document you're presenting.

1. Voter ID - This is also an identification document issued by the Election Commission of India to adult citizens of the country.
2. Utility bill (electricity, gas, water, telephone) - bills from 3 months ago with your current valid address can be served as a valid address proof.
3. Bank account statement or passbook of the bank - Account statement from 3 months ago or a copy of the bank passbook of another bank account can serve as a valid residential proof.
4. Ration card - this card contains all details of family members and can be served as an address proof.
5. LIC policy receipt - As an alternative to the above documents, the LIC receipt is a government recognised document that contains your identity and address proof. This too can be used in case any of the above documents are unavailable.
6. A letter stamped/signed/recognised from a gazetted officer or public authority to verify the address details of the applicant - The local MLA can provide a letter validating your address at the said location. This is in case any of the above documents are not issued yet or are still being processed.

Additional Documents For Opening A Bank Account

1. Passport size photograph - Two recent passport size photographs standardised for bank submission are required while opening a bank account.
2. A duly filled form of the bank account opening(online/ offline) - Most bank account opening forms are available online to download and print and alternatively can be collected at the bank. This needs to be duly filled with your details accurately along with the valid documents mentioned above.
3. KYC form as provided by the bank - This is now a mandatory form required by all banks and needs to be filled in during the opening of a new account. These, too, are available online / offline at the bank’s branch.

The process of opening a bank account is fairly simple and with the correct documents it can be done within a day.

Once these documents are submitted, the bank then verifies and validates the customer's eligibility, along with the veracity of the documents submitted. Post this verification, the bank account is opened with all functionalities ready to use.

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FAQs

Q. What is the average rate of interests available in banks?

Ans. Average rate of interest available in most banks ranges from 3.5 % - 6% per annum.

Q. What is a zero balance saving account?

Ans. A zero balance account does not require you to maintain a minimum balance. In a regular account a certain minimum balance needs to be maintained else there are charges levied by the bank. A zero balance account is much hassle-free in comparison.

Q. What are the benefits of a student account?

Ans. Student accounts are easy to maintain and come with a bunch of offers like free debit card, net banking and phone banking options. Some of the best banks for students is ICICI bank, HDFC DigiSave, Axis bank etc.

Q. How to open a PPF account ?

Ans. SBI, ICICI offer to open PPF accounts online. You need a PPF opening form, ID proof, Address proof, pay in slip for minimum amount to be deposited and a birth certificate in case of a minor applicant.

Q. Is it possible to open an FD account without having a savings account in the bank?

Ans. Yes it is possible to open an FD account without having a savings account in the bank. You need to submit the KYC form and submit all documents as directed by the bank.