Basic Banking: Opening a Bank Account

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hello everyone in module 2 of basic

banking we are going to learn how to

open a bank account but before we start

let's look at some important words for

this module debit when you take money

out of a bank account or money is old

credit when you put money into a bank

account or when you pay for goods or

services later deposit when you put

money into your bank account transaction

when you exchange goods or money before

you open an account you need to choose

which bank you are going to use to help

you make a decision you should ask the

following questions does the bank have a

branch that is close to where you live

or work it is important to have a bank

near you if you need to ask questions or

do your banking what are the monthly

fees banks charge a monthly amount

called fees for having an account they

also charge small amounts for each

transaction you make it's best to go to

the information desk at the banks you

like and ask them what their costs and

interest rates are then choose a bank

that gives you low costs and good

interests on your savings when the time

comes to open an account you will be

asked to give the bank your personal

details like a copy of your ID and show

proof of your address you will also be

asked what kind of account you want

there are many different types of

accounts but let's look at the two main

types a transaction account and a

savings account a transaction account is

for any kind of action that you carry

out with money it's very useful for

day-to-day banking needs like depositing

and withdrawing money paying bills and

receiving a salary but because you don't

earn much interest in a transaction

account they are not the best account to

use if you want to save money for this a

savings account would be better they pay

higher interest than transaction

accounts so your money grows while it is

there some savings accounts pay even

more interest but only on the condition

that you tell them a month in advance if

you want to take out your money once

you've opened an account the bank will

give you a plastic card call a debit

card you will then have to choose a

secret number called a pin code which

you should not share with anyone from

now on whenever you use the card you

will have to enter your pin code with

your debit card you can withdraw cash at

an ATM when you go to an ATM machine

will ask you to enter your PIN and which

account you want to draw money from it

will also ask how much money you want to

draw if you have money in that account

the Machine will give you the money as

an ATM you can also do other things like

check your account balance this shows

you how much money you have in your

account pay bills send money to someone

deposit money or buy airtime you can

also use a debit card to buy things at

shops instead of paying cash

if PETA is shopping at a grocery store

it doesn't have to pay in cash you can

just give the teller his card the teller

swipes it through the Machine and asks

him to enter his pin the amount he owes

will be taken from his account and be

paid into the shops account it is

cheaper doing it this way rather than

withdrawing money from the ATM first and

then paying with cash this means you

don't have to keep going to the ATM to

draw money to buy things but while debit

cards are better than cash you must

always be careful when using your debit

card don't let strangers try to help you

when withdrawing money from an ATM and

don't share your PIN number with anyone

so now you know how easy it can be to

buy what you need and manage your money

if you have a bank account that's it for

today we hope you found this training

module helpful