Managing your Money
If you have your money you need to learn how to manage it...
A bank account is where you can store your money. You will need one to receive salary, or just simply to keep your savings.
How do you open a bank account?
To open a bank account, you will need personal identification such as an Aadhar card,a voter id card, a pan card, your driver’s license or passport, or a combination of these. You may also be required to provide a document as proof of residence. In India, children above the age of 10 are allowed to open and operate a savings accounts. These accounts cannot be overdrawn and must always remain in credit.
You should keep all the information concerning your bank account together in a safe and dry place, including your monthly or quarterly statements.
Types of bank accounts
A current account is more suited for businesses.They allow for transactions which are more liquid in nature and are suited for day-to-day transactions. These are usually opened in the name of the firm or the company. These accounts don't earn any interest from the bank and the bank will typically charge some form of service taxes. on these accounts.
Savings accounts are normally used by individuals who don’t have day to day transactions. Interest is accumulated on the amount in these accounts on an annual annual or quarterly or monthly basis depending on the terms and conditions of the account. The Interest rates can be as low as 3% per annum to as high as 6%-7% per annum.
Recurring Deposit Account
Recurring Deposit Accounts are similar to a savings account, though they differ in terms of the amount that can be dposited each month and their duration. Recurring deposit accounts have a fixed amount that is to be paid into the account each month for a specific number of months. Normally banks set the minimum amount at 500 rupees per month. Banks will give compounded interest on these accounts.
Instead of putting some money into an account each month, a fixed deposit account lets you deposit a lump sum amount in the bank for a fixed duration, usually a number of months. These accounts collect interest towards the end of that duration. You can end your Fixed Deposit at any point in time, though your account will not receive tha total amount of interest promised when you set up your fixed deposit account. Fixed Deposits are very low on risk when compared to investments in Mutual Funds or shares.
A joint bank account is one that you have with someone else, usually your partner/parent/ family member. This account is owned by both of you and can be accessed by both of you. If one of you dies, the remaining account owner will then own the account.
If you and your partner have a joint account and you break up, you should close the account and ensure that your salary and other benefits are paid into your own personal account.
Bankcards and PINs
You are normally issued with a bankcard and PIN so that you can access your money by withdrawing it from ATMs or using EFT POS in shops. You should never write down your PIN anywhere near where you keep your card, or disclose your PIN number or provide your bankcard to another person. If you do, you risk them accessing your money without your permission or stealing it. The bank may not reimburse you for the stolen money if you have given the person permission to access your account by telling them the PIN.
If you lose your bankcard you should tell your bank immediately (dedicated lost card contact details are generally available on the bank’s website) and if you suspect it stolen, you should call the police immediately.
If you intend to travel overseas and use your bankcard you should notify your bank or financial institution in advance – they may suspect fraud if transactions appear from another country and you haven’t let them know you are travelling.
Tip: Emails that seem to be from your bank asking for your log in details are often scams. If you have any doubt at all, call your bank instead.