How to Open a Bank Account

Topics: Deposit account, Banking, Bank Pages: 6 (1883 words) Published: February 11, 2012
Now-a-days, most of the people keep money in bank to make the money secure and as well as for profit motive through interest. For various kinds of people there are various kinds of bank account such as savings A/C, current A/C etc. Since our assignment is through savings A/C plan on Bank Asia Limited, so we are discussing below about it. Bank Asia Limited is a scheduled commercial bank in the private sector established under the Banking Company Act 1991 and incorporated in Bangladesh as a public limited company under the Companies Act 1994 to carry out banking business in Bangladesh. If we want to have a well-rounded savings plan, we will need to know how to open a savings account. Since there are several options, it might seem confusing regarding which one to select. However, the process itself is not complicated. This assignment includes the steps necessary to open a savings account in Bank Asia Limited. Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money (for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be callable immediately and therefore often does not incur a reserve requirement freeing up cash from the bank's vault to be lent out with interest. One of the most basic tools that we can use to help manage and further our savings goals is, of course, a savings account. Not only do savings accounts provide a safe, secure and convenient place for us to store the money you're putting into the account, they can also (in certain instances) help build our savings with interest. If we don't have a savings account, and we want one, it may be the perfect time to set one up. If we already have a savings account, keep reading to make sure that we have the right one to meet our needs. Many people are under the impression that savings accounts are offered by banks and only banks. This is not so. One prime example of an exception is a credit union. To do a little research on our own will help prepare us to go to our financial institution of choice and feel confident when we sit across the desk from the employee who will be helping us. We should not hesitate to ask questions. The personnel in charge of "new accounts" should not only answer all our questions, they should also let us know if they offer more than one "product." That is, more than one type of savings account. On the end, we have to be well prepared with some personal documentation (National ID Card, referee’s photographs as well as the A/C holders) and take it with us. What Is An Interest Rate?

The main benefit of a savings account is the interest that we can collect on the money we have in the account. The bank (or other) will calculate our balance on a consistent basis and add interest money to the account. People often wonder why they are willing to do this. Here's how it works. For the privilege of using our money to lend to others (while we are saving it but not using it), banks will pay us a percentage of interest on the money that we choose to keep with them. For instance, if our interest rate is 1% and we have $1,000 in your account, then we will earn $10 each year that we have our money in the account. This is based on the bank doing their calculations only once a year. It is usually more frequent - such as per annual quarter. We have to be sure to ask the employee questions regarding minimum balance requirements and the current interest rate they are offering on savings accounts. The interest rate that we receive will depend on the bank we choose which is Bank Asia Limited as well as the type of savings account we open. The interest rate of savings A/C of Bank Asia Limited:

Type| Interest Rate|
Interest Rate Savings Special Notice Deposit (SND)|  |
For Avg. balance below Tk. 1crore| 4.50%|
For Avg. balance below Tk. 1 crore...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • How to Open a Bank Account Essay
  • Bank Accounts Essay
  • Different Types of Bank Accounts Essay
  • How to Open Different Types of Bank Accounts Essay
  • Saving Account at Bank Rakyat Essay
  • How to Open a Savings Bank Account Essay
  • Essay about Type of Bank Accounts
  • How will technology impact Bank Essay

Become a StudyMode Member

Sign Up - It's Free