What is a Bank Account?

A bank account is a financial account with a banking company, recording the financialtransactions between the customer and the bank and the resulting financial position of thecustomer with the bank. It is an arrangement whereby you may place your deposit under thesafekeeping of your bank or deposit taking financial institutions. The bank as financialintermediary channelize these funds in productive resources and banks may pay remunerationout of profit they earn on your deposits. Bank accounts can help you manage your everydaymoney.

Types of Bank Accounts Banking institutions may offer a broad range of bank account types. By learning differentaccount categories, you can work out the choices that suit your personal needs.  Basic Banking Account (BBA)  In order to broaden the access of financial services to under privileged and to facilitate andprovide basic banking facilities to the low income people in Pakistan, all commercial banksoffer Basic Banking Accounts (BBA) facility. The main features of this account are:

1: The minimum initial deposit is Rs 1000 and there is no fee for maintaining BBA. It is a non‐remunerative account with no limit on minimum balance.   In cases, where balance in BBA remains ‘nil’ for a continuous six‐month period, suchaccount is liable to be closed. Maximum two deposit transactions and two chequing withdrawals are allowed, free ofcharge, through cash/clearing per month. Unlimited, free of charge, ATM withdrawals from the banks’ own ATMs. In case ofwithdrawal from BBA through the ATM machines of other banks, the respective/otherbank may recover charges for such transactions. Existing bank account holder can convert to BBA from regular full service bankingaccount. The banks can add more services, if they wish and also charge, as per their existingpolicy, for any service/transaction over and above the minimum set of services of a BBA,if they