How to open and use a bank account safely

As individuals begin to earn, save, and manage money, opening a bank account becomes an important step in developing financial responsibility. A bank account not only offers a safe place to store money but also provides access to a range of financial services that simplify day-to-day transactions and help build long-term financial habits. This blog outlines the importance of having a bank account, explains the process of opening one, especially for young individuals like you, and provides essential safety tips for operating a bank account responsibly.

Keeping money in a bank is significantly safer than storing it at home or carrying it in around in cash. Banks are regulated financial institutions and offer protection against any kind of theft, loss or damage. Most savings accounts offer interest on deposits. This means that the money kept in the account grows over time, encouraging the habit of saving. Bank accounts allow individuals to use a wide range of services such as online banking, mobile banking, UPI (Unified Payments Interface), debit cards, and automated bill payments. A bank account maintains a detailed record of all transactions. This helps individuals track their spending, prepare for taxes, and maintain financial discipline.

You may wonder if all bank accounts are of same type. In India, several banks offer special accounts tailored to students and minors (those below 18 years of age). These accounts typically require parental or guardian supervision and offer limited but sufficient features to encourage responsible usage. Let me share some kinds of bank accounts:

1). Savings account for minors - These accounts are designed for individuals below 18 years of age. Features may include a passbook, an ATM or debit card, and internet banking access with limitations.

2). Student accounts- Some banks provide accounts specifically for students aged 16 and above. These accounts often have relaxed requirements for maintaining minimum balances and provide essential banking tools. Examples of student/minor-friendly bank accounts in India include SBI Pehla Kadam / Pehli Udaan, ICICI Bank Young Stars Account, HDFC Kids Advantage Account, Kotak Junior Account

Once you have chosen which account type suits you best, you can then look at how to open a bank account. Opening a bank account is a straightforward process that can be completed either in-person at a bank branch or online through the bank’s official website or mobile application. First step is to choose the right bank. When selecting a bank, it is important to consider factors such as proximity to branches and ATMs, availability of zero-balance accounts, digital banking features, reputation and customer service

Next step is to collect required documents. The documents that are typically required are Aadhar Card (for identity and address proof), PAN Card (or Form 60 if unavailable), Birth certificate or school ID card (for age verification), Recent passport-sized photographs, Proof of address (e.g., utility bill, rent agreement) and Parent/guardian’s identification documents and consent (for minors).

Thereafter applicants must fill out the account opening form accurately, providing details such as name, date of birth, contact information, and the type of account being opened. The guardian’s information must also be included if applicable. Once the documents are verified and the application is approved, the bank will provide a passbook or account statement, an ATM/debit card and internet and/or mobile banking credentials (based on eligibility)

The account is now active and ready for use!

While banking systems are designed to be secure, account holders must also take personal responsibility to protect their information and avoid fraud. Account holders should never share their ATM/debit card PIN, net banking passwords, One-Time Passwords (OTPs) or CVV numbers or security codes. Banks will never ask for this information through phone calls, emails, or messages. Any such request should be treated as a scam. Online banking should only be accessed through official bank websites (look for “https://” and a padlock symbol) and verified mobile applications from trusted app stores. You must avoid clicking on links received through unsolicited messages or emails. These days, a lot of newspapers, magazines, radio stations, TV channels are involved in spreading awareness about cyber frauds.

In addition, it is advisable to activate SMS and email alerts for every transaction. These alerts help monitor account activity and detect unauthorized usage immediately. When using ATMs, ensure privacy while entering the PIN. Use ATMs located in well-lit, secure areas. And for online transactions, use secure internet connections and avoid public Wi-Fi. If the debit card is lost or stolen, you must immediately inform the bank, block the card using internet banking or the bank's customer service helpline and always monitor the account for any suspicious transactions.

To conclude, opening a bank account is not only about access. It is also about building lifelong habits that support financial well-being. Even small amounts saved consistently can build up over time. Consider setting monthly savings goals to encourage discipline. Opening a bank account is a significant milestone in a young person’s financial journey. It provides a secure way to manage money, fosters independence, and introduces essential financial tools and habits. However, with the growing use of digital banking, it is equally important to stay informed about safety measures.

By following the correct procedures to open an account and applying adequate safety tips, I am sure that we all can confidently manage our finances and protect ourselves from potential risks.