You may be wondering how to manage your money well? The question is more than legitimate! You have all heard of the bank current account , and you probably use it daily for personal reasons. It’s a way to pay and receive money while tracking your own consumption. So how do you get a checking account ? What are its features and functions? What is the difference with the savings account? Dougs is looking into the subject today, in order to answer all your questions as best as possible.
For the record, the term is inherited from the Italian “conto corrente”. Today, we also speak of “ current account ”, “ CAV ”, “ checking account ” or “ deposit account ”. In general, the current account is a type of bank account that is used for all commercial or financial transactions between two parties.
How to open a current bank account?
A current account can be opened with a so-called traditional bank, an online bank or a neo-bank. There are now even possible accounts to be opened directly in a tobacconist. To open a bank current account , the customer signs an account opening agreement, established between him and the organization that hosts the deposited funds.
When opening his current account , the user will be given the corresponding means of payment (bank card, checkbook) as well as a bank account statement or RIB.
Nothing could be simpler, especially since the arrival of banking mobility assistance. You just have to go physically or online to a bank and apply for it.
When opening this current account , you may or may not sign a bank mobility mandate. This authorizes the new bank to contact your old bank in order to obtain all the information necessary for your transfer. As for the RIB, you don’t need to do anything: the new bank takes care of everything!
In all cases, the bank has the legal obligation to respect a notice period of 1 to 2 months. This deadline is shorter when the customer has major solvency problems.
Debit and credit bank current account
A current account is debited when outgoing flows are greater than incoming flows. Conversely, a bank current account is in credit when the outgoing flows are less important than the incoming flows.
Borrowed from the Latin debitor , derived from dēbēre for “duty”, debtor means that you are indebted for the trust someone has given you. So you owe him money. We commonly talk about bank overdraft. As for the term creditor, it comes from the Latin reditor , “creditor”, from credere , “to lend”. In this case, you trusted someone by lending them money. He is therefore indebted to you!
Good to know: if the debit amount (therefore the bank overdraft) is greater than that authorized, the account holder will have to pay the dreaded agios. Otherwise, there will be no charge, but the customer will still be asked to rectify the situation quickly by depositing money on the debit current account .
Who can have a checking account?
In France, anyone with a bank account has a current account . This is also the case for a company and for any professional. It must be said that obtaining a current account is a legal obligation within the framework of a remunerated activity subject to the opening of a bank account . It is thanks to this that you can buy, sell and monitor your consumption.
When you want to open a bank account , it makes sense to ask yourself this question. And yes, current account and savings account are not the same thing! But it is good to know that in some cases they may have similarities. Come on, we explain everything to you so that you can know which of the two would suit you the most!
What about the savings account?
The savings account has many similarities with the current bank account when it comes to basic unblocked savings. Note that accounts cannot be joined. However, you can make power of attorney, advised in case you are unable or unable to withdraw your money. An ATM withdrawal card can be assigned for most non-blocked savings accounts, but no payment card.
What if no bank wants to open a current account for you ?
A bank has the right to refuse to open a bank account for you . In this case, you can contact the Banque de France to benefit from the procedure for the right to an account. The Banque de France then appoints a bank, close to your home or the place of your choice, which must open an account for you with basic banking services.
If you have problems with your bank, other alternatives exist for your current bank account . Indeed, for a few years now, banking services have been developing around online banks and neo-banks. They have their own peculiarities.
However, online banking and neo-banking allow you to save a lot of money. They are free or inexpensive, are quick to carry out your operations, are much more available, with lower payment incident costs. Finally, many features are emerging to allow a complete banking experience.
Is it compulsory to have a checking account ?
There is no legal obligation to hold a current account or a bank account in France. However, it is really advisable to hold one insofar as it allows you to have control and ease over your money management, and at the present time, to manage daily life, it is almost impossible to do without. Whether you are a private individual or an entrepreneur, think about it, the Dougs experts strongly advise you