ALL YOU NEED TO KNOW ABOUT PROCESS AND PROCEDURES TO OPEN BANK ACCOUNTS

Although Banks offer a wide variety of accounts but these accounts are mostly patronized and open by customers. Most Banks offer all of these types of accounts. Here is a brief description and requirement for opening them.

Savings account

These are intended to provide incentive for you to save money. You can make deposit and withdrawals but you can’t write Cheques. The Banks usually pay interest rate on these accounts. Savings account may be opened on request without taking references and must be operated strictly on cash basis. No Cheque payment order should be received into the account except approved by the bank’s Head of Operations.  Below are requirement to open different type of Savings account.

Requirement for opening of personal savings account

Applicant must be present in the banking premises with proper identification, and two recent passport size photographs.

Proper identification acceptable is;

·         International passport

·         National Driver license

·         National I.D card or voter’s card

·         Identity card of Blue chip company

Opening of joint savings account

This is where a savings account is to be opened for more than one person e.g. friends or husband and wife.

Requirements

·         Obtain account opening form which indicates in clear terms how withdrawals are to be made on account. E.g. ‘all to sign’ or ‘any two to sign’ or Mr. X to sign with one other’. E.tc.

·         Complete signature cards and ensure that all signatories sign the specimen signature card, make reference to the mandate on the card.

·         Obtain three passport size photographs each from all signatories.

Opening of other savings account

In opening a savings account for clubs, societies, unions, associations.e.tc, the procedure is basically the same as in operation for opening of individual savings account except for the fact that a proper mandate must taking before opening the account. The following conditions must be fulfilled in addition to the above:

1.      Obtain the constitution or its rules and regulations or a letter duly signed by the Chairman and the Secretary.

2.      Complete signature card and mark appropriately.

3.      Ensure that all signatories to the account are present to sign their specimen signature in the presence of bank officer.

4.      Obtain a letter authorizing the signatories to operate the account and also photographs of each signatory.

Opening savings account for minors

A savings account can safely be operated for a minor. Where the minor is 17 years old or less. The account will be opened and operated by an adult on behalf of the minor as a trust account.

Procedures

·         In this case, the opening of account signature card must be completed in the name of the adult.

·         As soon as the minor is 18 years of age, he should be properly introduced to the bank as an account holder in his own right,

·         Birth certificate or proof of age of the minor must be obtained before opening the account.

·         Passport photographs of both the account operator and the minor must be obtained.

Current Accounts;

This offer comprehensive set of services at cost. You are usually able to write an unlimited number of cheques. The interest rate on these accounts depends on how large the balance in the account is. It charges a monthly service fee if your balance falls below a pre-set level.  Types of current account and requirement to open them are hereby stated.

Opening of Current Account for Individual

Requirements:

·        Completion of account opening form

·        Proper Identification Cards (international passport, National or Voter’s card or valid driver’s license.

·        Two passport photographs

·        Two duly completed referee forms

 Limited Liability Company

Requirements:

·         Completion of account opening form

·         Photocopy of certificate of incorporation- original to be sighted and marked.

·         Photocopy of form CO7- original to be sighted and marked.

·         Copy certified memorandum and articles of association duly dated, sighted and witnessed.

·         Extract of the company Board’s Resolution authorizing opening of the account with the bank and signatories appointed- on the company letter headed paper.

·         Two duly completed referees forms, the names of the referees, signature, their banker/branch and account numbers must be clearly stated on the form.

·         Two passport size photographs of each of the signatories and copy of resident permit if foreigner.

·         Two duly completed signature cards on each signatory to the account.

Opening of current account for Partnership.

Procedure is as under individual account since all members of the partnership are regarded as having joint liability for the debits of the partnership. It is therefore important to note that for any action to be binding on all members, they should all sign any agreement including any debit authority. This is the position of the law, except stated otherwise by the partners in writing or clearly stated in their deed of partnership.

Requirement for opening account

·         Deed of partnership.

·         Completion mandate form C

·         Two duly completed referee forms on all signatories

·         Photocopy pages 1-5 of the applicants’ International passport or photocopy of driver’s license.

·         Two duly completed signature cards and letter committing the partners to joint and several liabilities should be obtained.

Opening account for clubs and associations

Where a club or association has not been duly registered the customer should be advised to open a join account in the name of their Trustees.

Requirements

·         Certificate of registration of club or association.

·         Extract of minute authorizing the opening of the account with the bank on their letter head paper, this extract should among other things state the club’s trustees and appointed signatories to the account and limit of their authority.

·         Completion of mandate form E.

·         Two duly completed referee forms of all signatories, the name of the referees, signature, their banker and account number must be clearly stated on the form.

·         Two passport photographs each of the signatories.

·         Photocopy pages 1-5 of the applicant international passport or photocopy of driver’s license.

·         Two duly completed signature cards.

·         Copy of constitution, rules and regulations, if there is none, a letter duly signed by the president and secretary to that effect and that when ready will be submitted to the bank.  

Fixed / Certificates of deposit:

 These are also known as TIME DEPOSIT, because the account holder has agreed to keep the money in the account for a specified period of time, from a month to six years. Because the money will be inaccessible, the account holder is rewarded with a higher interest rate. The rate increase as the duration increases. There is a substantial penalty for early withdrawals so don’t open this account if you think you may need the money before the maturity date. The basic requirement for opening this account is completion of authorization form and proper Identification.