The 4thchapter of our Banking learning course is “Bank Account”. In this article, we’ll learn the 25 most important bank account questions and their answers.
It will help you understand the important bank account terms and their explanations quickly.
You can read the previous three chapters of our Banking learning course here if you missed them.
- 30 Important Primary Concepts of Banking Questions and Answers [With PDF]
- 30 Important Central Bank Questions and Answers [With PDF]
- 25 Important Commercial Bank Questions and Answers [With PDF]
By reading this post, you may quickly prepare for banking courses and for any competitive tests such as school and college exams, viva’s, job interviews, and so on.
So let get started…
Bank Account Questions and Answers
The 25 important bank account questions and answers are as follows:
Question 01: What is Bank Account?
Answer: A bank account is an account that is opened in the name of a customer and allows the customer to conduct transactions and receive banking services.
Question 02: What is the Importance of Opening a Bank account?
Answer: The importance of opening a bank account is as follows:
- Money safety preservation
- Development of a saving attitude
- Provision of risk-free income
- Establishment of the national capital
- Economic growth
- Obtaining banking services
Question 03: What is the Procedure of Opening Current or Savings Bank Account?
Answer: The procedure of opening a current or savings bank account is as follows:
- Collection of application form
- Fill-up application form
- Introduction
- Enclosing necessary documents (Pic, NID, TIN, Passport, Trade License, etc.) with the application form
- Submission of application form
- Fill up the specimen signature card
- Collecting deposit slips and depositing primary deposit
- Receiving checkbook and Debit card
Question 04: What is the Procedure of Fixed Account?
Answer: The procedure of opening a fixed bank account is as follows:
- Collection of application form
- Fill-up and submission of application form
- Depositing money and collecting fixed deposit
Question 05: What are the Rules of Closing a Bank Account?
Answer: If a customer wants to close his current or savings account, he has to go to the bank and apply for closing the account by handing over the passbooks and unused check forms.
The bank authorities then refund the remaining amount to the customer by deducting the cost of closing the account from the customer’s account. Immediately after the refund, the account holder’s name is deducted from the bank’s ledger and the word ‘closed account’ is written next to his name.
Question 06: What are the Types of Bank account?
Answer: The types of a bank account are as follows:
- Current account
- Savings account
- Fixed account
- Special account:
- Pension account
- Insurance savings account
- Recurring account
- Loan account
- Non-resident foreign account
- Foreign currency non-resident account
Question 07: What is a Current Account?
Answer: A current account is an account where you can deposit and withdraw money as many times as you want in a day and the bank does not pay interest on this account.
Question 08: What is Special Current Account?
Answer: A special current account is a type of current account in which money can be deposited and withdrawn at any time and the bank only pays a small amount of interest or profit.
Question 09: What are the Advantages of a Current Account?
Answer: The three important advantages of a current account are as follows:
- In this type of account, the customer can deposit and withdraw money as many times as he wants in a day.
- The customer of this account gets the benefit of a bank overdraft without collateral.
- Such accountants get additional benefits in case of transfer of money, collection of checks, and payment of various bills.
Question 10: What is Savings Account?
Answer: A savings account is one in which there is an obligation to withdraw money no matter how many times you deposit in a day and the bank pays interest or profit to the customer.
Question 11: What are the Advantages of a Savings Account?
Answer: The main advantages of a savings account are as follows:
- This account can be opened by depositing a small amount of money so that anyone can open such an account.
- This type of account increases the savings tendency.
- Such accounts increase the savings tendency among the people of the country which helps in capital formation.
- By opening such an account a customer gets a banking facility as well as satisfactory interest or profit on the accumulated deposit.
- Even an ordinary person can get a banking facility by opening such an account
Question 12: What is Pension or Special Savings Account?
Answer: A pension or special savings account is one in which the customer deposits money every month for a set period of time, and at the end of the term, the bank usually pays a large sum of money all at once.
Question 13: What is an Insurance savings Account?
Answer: The insurance savings account is the account in which the depositor receives the benefits of both a savings account and an insurance benefit.
Question 14: What is a Fixed Account?
Answer: A fixed account is one in which money is deposited for a set period of time in order to earn interest or profit and the bank does not provide a checkbook in exchange.
Question 15: What are the Advantages of Fixed Account?
Answer: The three important advantages of a fixed account are as follows:
- Customers of this account receive higher interest or profit from the bank.
- Customers of this account gets a certain amount of loan facility against his deposit.
- This types of accounts play an important role in generating capital.
Question 16: What is Recurring Account?
Answer: A recurring account is an account in which the depositor can deposit money repeatedly within a certain period of time and withdraw money in a single term or in installments.
Question 17: What is Specimen Signature Card?
Answer: The depositor’s specimen signature card is called a specimen signature card because it is used to determine whether the check’s signature is correct.
Question 18: What is Bank Pass Book?
Answer: A bank pass-book is a small book that a bank gives to a savings account customer to provide information about his transaction.
Question 19: What is a Bank Statement?
Answer: A bank statement is a computer print statement or PDF file that a bank provides to its customers to inform them of transaction information.
Question 20: What is Deposit Receipt Book?
Answer: The deposit receipt book is the receipt book printed by the bank for the customer to use when depositing money as a bank.
Question 21: What is a Check-Book?
Answer: A checkbook is a book that the bank provides to its customers for withdrawing money from their accounts.
Question 22: What is KYC Form?
Answer: The KYC form is a form that the account holder is required to fill out with the applicant’s various information at the time of opening the bank account, along with the application form, and the bank authorities must verify and sign the information provided by the account holder.
Question 23: What are the Considerable Factors for Selecting Bank Account?
Answer: The considerable factors for selecting a bank account are as follows:
- Nature of client
- Nature and quantity of transaction
- Banking services
- Interest or profit
- Loan facilities
- Idle and surplus money
- Safe custody
Question 24: Which Type of Bank Account is Best for a Businessman and why?
Answer: It is best for a businessman to open a current account.
A current account is an account through which the bank allows its customers to deposit and withdraw money as many times as they wish during the working day.
A businessman has to make regular financial transactions and needs various types of banking assistance in addition to loans, cash loans, overdrafts. Which is not available as others. So businessmen open current accounts.
Question 25: Which Account is Best for a Service-Holder and Why?
Answer: It is best for a service-holder to open a savings account.
The account that the customer opens in the bank for the purpose of savings and transactions through a bank is called a savings account.
A service-holder receives a fixed salary at the end of the month, deposits it in the bank, and spends it when needed. It saves money. On which the customer gets some interest and gets various banking benefits. So a service-holder opens such an account.
I hope that by the end of this post, you have a good understanding of the “Bank Account” chapter.
You will gain a better understanding of the “Bank Account” chapter if you read these 25 important bank account questions and answers on a regular basis.
