Secret to Financial Freedom: Uncovering the Mysteries of Bank Account Opening

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A current account allows you not only to keep monetary means on it, but also to pay for purchases and services from it, to make transfers to people and organizations, as well as between firms. When an entrepreneur or private person takes out a loan, the bank also opens an account, into which funds will then be deposited to pay off the debt. To work effectively with non-cash mutual settlements in the course of commercial activities, organizations and individual entrepreneurs also require a special tool. It acts as a checking account. Running a full-fledged business-project without this tool will not work. The essence of the current account is the appointment of payments.

Our company has been working in the field of establishment and licensing of commercial structures for many years. We are also ready to provide you with highly qualified professional assistance in opening merchant accounts and connecting payment systems for business-activities.


What you need to open a banking account

You can start opening an account at any time after registering a legal entity or individual entrepreneur. It’s more convenient to open it when the business-structure has already earned and stabilized. Since, in essence, the account is not tied to the place of business-project or to the address of registration, it can be opened at any institution. The procedure itself is quite simple and does not require much time to implement. There are a few things you need to do:

- choose the right bank;

- carefully study the conditions and cost of services, the rights and obligations of the parties;

- prepare a package of necessary documents;

- complete and submit an application for opening an account;

- sign an agreement.

Most financial institutions provide the client with account details after the application has been submitted, or the contract has been signed. The entrepreneur may also be asked for documents to identify the identity of the applicant.

You can also open an account remotely through the following options and options:

- through your personal account or mobile application, if you are already a client of this banking establishment;

- through a single system of remote identification using biometric data;

- through the marketplace: this is an online platform where you can choose a suitable financial product and conclude an agreement.

It is not necessary to immediately deposit money into a current or savings account. They can remain empty for a long time. If funds do not appear for them for a long time, the banking institution has the right to close them. In advance, the institution must notify you of its intention. To open a deposit and metal accounts, you need to immediately deposit funds into them.


Choose a banking facility or credit union

To decide on a credit institution, you first need to understand the specifics of the business and what exactly the current account will be needed for. Entrepreneurs should find out and understand whether they will need to work with the cash register or will only pay by transfers. In addition, the question remains whether payments will be accepted via the Internet and terminals. It is very necessary, among other things, to determine whether the business-structure implies the opening of corporate and salary cards.

Then you can conduct a comparative analysis. In doing so, you need to pay attention to the following criteria:

- the price-rates of opening and connecting acquiring;

- the amount of the service fee;

- speed and cost of order processing;

- daily limits on withdrawals and transfers of cash.

It is also worth reading the calls about the selected banking institution and clarifying the list of supported devices for working with mobile applications. In the case of a limited amount of time to search, you can narrow the circle to specialized institutions designed specifically for business.


Choosing an account

So, it is imperative to decide what type of account an entrepreneur or individual needs. Let’s consider them in more detail.


1. Deposit account.

It’s needed in order to open a banking account. Some institutions offer multi-currency deposits. This means that within the framework of one deposit agreement, the client has several accounts opened in different currencies and he can transfer monetary means from one account to another.

You cannot pay for purchases, withdraw money or make transfers to other people from a deposit account. If such conditions are confirmed in the agreement, the accrued interest or part of the deposit amount can be transferred from the deposit account. When closing the account, the entrepreneur can withdraw all the funds, however, the accumulated interest will be lost.


2. Savings account.

Banks charge interest on the funds that are in the savings account. In some cases, they may even exceed the interest on the deposit. As a rule, it is impossible to pay for purchases directly from a savings account. First, the money must be transferred to a current account. From a savings account, the banking establishment, as a rule, allows you to transfer monetary means without restrictions. You can withdraw interest or part of the principal amount from the deposit.


3. Metal account.

This option is suitable for those who intend to invest in precious metals, in particular, gold, silver or platinum. But not all banks have depersonalized metal accounts.


Opening an account and starting using the account

In order to open an account, legal entities will need to prepare the Statute in the latest edition and the Amendment Sheets, if any, a decision/protocol on the appointment to the position of the head, an extract from the register of shareholders, an identity document of the head and documents provided in order to comply with the requirements of the law on combating illegal turnover of funds. If necessary, additional data may be requested.

An enterprise or an entrepreneur can start using the account when carrying out the first operations with its help. When accounts exist, the following points should be taken into account.

1. Monetary means on accounts in some institutions are insured and are paid to the beneficiary when the bank’s license is revoked.

2. When the account is closed, the monetary means are either paid to the beneficiary or transferred to another nominal account opened in his/her favor.

3. Responsibility for the information provided to the banking facility lies with the account holder, including information relating to the beneficiary.

Entrepreneurs who intend to use a personal account as a business-tool should take into account possible risks. Difficulties may arise with banks, contractors and tax authorities.


How much money do you need to open an account?

The cost of opening an account in most cases is not quoted, that is, it is absolutely free. However, each institution establishes its own terms and conditions, which must first be carefully read.


How long does it take to open an account?

In most cases, this process takes 1-3 days after receiving all the papers from the client. However, it is worth mentioning that each case is considered individually at the conclusion of the contract.

Our specialists are fully prepared to provide you with highly professional assistance and assistance in this procedure. We are focused only on high-quality and effective results.

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