What is a bank account
Bank account is a service provided by your bank that allows you to deposit and manage your money.
You can usually deposit and withdraw funds but also use the payment methods associated with your bank account.
You can open a bank account at:
- A traditional bank
- An online bank
- A mobile bank or "neobank"
Your right to account
Any adult person has the "right to account".
That is to say that if she does not have a deposit bank account, she has the right to open such an account with access to basic services in the establishment of her choice.
Bank account categories
There are different categories of bank account depending on the nature of the account or the number of holders.
Categories according to the nature of the account
The current account
The current account is the most common account.
It allows you to perform basic banking operations:
- Payment collections and salaries
- Debits
- Transfers
You can withdraw some or all of your deposited funds at any time.
It is very often associated with means of payment such as the bank card or the check book. You can also sometimes benefit from an authorized overdraft.
The current account does not generate any interest.
The current account is also called a “deposit account”, “checking account” or even “current account”.
The savings account
The funds you deposit in your savings account are remunerated according to an interest rate.
You have regulated and tax-exempt passbooks - Livret A, LDDS or LEP for example - and tax-free passbooks.
You cannot benefit from payment methods or associated authorized overdraft.
The savings account is also called a “passbook account”.
The term account
The money you deposit in your term account is locked in and not accessible for a defined period (between one month and ten years).
The funds are remunerated according to the interest rate defined in the contract.
You can withdraw your funds before the scheduled date, but you will have penalties.
The securities account
The securities account allows the purchase and the deposit of transferable securities (stock market shares, units of investment funds and SICAVs or bonds). Dividends and capital gains received are subject to specific taxation.
Categories according to the number of holders
The individual account
The individual account is the most common account.
Only one natural person is the holder and is authorized to carry out transactions there. However, you can sign a power of attorney in favor of a third party or have a guardian.
The joint account
The joint account is most often opened by married, civil partnership or cohabiting couples. It is opened jointly by two people.
Each joint holder can carry out transactions on this account alone and any debts generated will be jointly and severally binding on the two joint holders.
The joint account
The joint account requires the signature of each of the joint account holders for a transaction to be carried out, unless a joint representative has been appointed.
To note
In this article, we will focus on the most common bank account: the individual current account.
How to open a bank account
1. Conditions for opening an account
Here are the conditions for opening an individual current account:
- You must be of legal age (or at least 16 years old and in the presence of a legal representative standing surety)
2. Documents to provide
To open an account, you will usually need to provide the following documents:
- A valid identity document (national identity card, passport, etc.)
- Proof of address of less than 3 months (rent receipt, water bill, etc.)
- A signature deposit (so she can verify checks)
To know
The bank has the right to ask you for other supporting documents such as your last 3 bank statements in order to know your profile or your last 3 payslips if it is about opening a premium account.
3. Procedure for opening an account
Opening a bank account is usually fairly straightforward.
You have to :
- Apply to the bank of your choice
- Provide the necessary documents
- Sign the contract
4. Acceptance or refusal of the bank
The bank is free to accept or refuse your request to open an account without giving reasons.
However, it must inform you of your possibility to contact the Bank to exercise your right to the account.
Checks on your banking history
Note that after verifying your identity, the bank conducts research on your banking past.
In particular, it will query the central check file (FCC) to find out if you are banned from banking, and the personal loan repayment incidents file (FICP) to find out if you are in over-indebtedness.
If you choose a mobile bank (or neobank), it will not verify your banking history.
How a bank account works
When you open a current account with a bank, the latter will inform you of all the conditions of use and management but also of all the banking services associated with them.
In addition, depending on the bank and the account opened, you will have access to associated banking services.
A current account allows you to:
- Deposit funds in the bank
- Receive money from third parties
- Make payments
All the information related to your current account (services, fees, conditions, etc.) are available in the account agreement which will be given to you when you open your account.
Banking services from a current account
Here are the most common banking services you will be entitled to if you open a checking account:
- Holding a RIB (bank identity statement)
- Deposits, withdrawals and transfers
- Means of payment associated with the account such as a checkbook or bank card . Obtaining a bank card may require the payment of an additional contribution depending on the model chosen.
- Consult and manage your account remotely (online customer area)
- Monthly bank statement
- Give power of attorney to another person
- Possibility of obtaining an authorized overdraft
How much does a bank account cost
Just like the services associated with your account, bank charges vary from bank to bank and from account to account.
Online banks generally have lower fees than traditional banks.
Mobile banks generally offer a free version with current account and free card.
