What is a Bank Account? Basis of financial transactions
Bank account is the main portal through which any transactions between the customer and banking institution occur. The bank account has a balance which records the amount remaining. There are two types of accounts in the financial world.
The deposit account is opened when the customer opens it for crediting money into the account. This is used mostly as a savings account or for other financial transactions with third party. The loan account is opened in case of a customer availing debt from the bank like a loan. Business organizations perform a lot of transactions in a single day itself. They would require both credit and debit facilities. These accounts are called as checking accounts in Canada.
How to open a bank account? The procedure to open a bank account in Canada is fairly simple and does not require much effort. The proof of existence like company registration for organizations is needed for validation. Verification of all documents and facts is done. Any third party issues involved are sorted out if any. The owners and the main users of the account are identified. The nature of how the transactions will be carried out is also specified.
The average time to open an account is found to be nearly half hour only. The account will be activated once all checks are carried out. All information regarding banking procedures is available in the government website database. Most banks offer transactions to United States accounts but charge a fee for the service. In recent times most banks offer online banking. This service may be utilized to the fullest by customers and at the same time exercising care.
Is a Numbered account any different? Numbered accounts are no way different than ordinary bank accounts. They differ only in the fact that they have a number instead of an account holder name. The same procedures and rules apply for these accounts as well. They cannot be regarded as anonymous accounts but used as an account to deal with sensitive transactions. This accounts ensures that the identity of the account holder is known to limited number of people.
International Banking Banking institutions provide facility for the users for multi-country transactions. The procedure for opening a bank account in Canada for doing business can be done online. It is very essential to open a bank account in Canada for business. This offers the organization credibility for the customers. Since most transactions are done by banks, having an account will be hugely helpful. There are various options offered by major banks for international banking.
Banks utilize a special code for validating transactions between various banks like money transfer. It is called Bank Identification Number (BIN) and usually consists of the first six digits of the account number. The code consists of parts which are used to identify the type of account. Each bank has its own unique identification code and this is embedded in the second part of the BIN number. Bank accounts are the most essential component for any financial transaction and can be used by both individuals and business organizations in Canada.