As a part of a club, society, or association, you may have a lot of financial transactions that need to be managed effectively. This could include membership fees, event expenses, and fundraising activities. To handle these financial matters in a structured manner, many banks in India now allow clubs, societies, and associations to open a savings account. 

As an organisation, having a savings account provides benefits such as earning interest on the account balance, facilitating easier transactions, maintaining accurate records of expenses and revenue, and online banking facilities.

Given its importance, here is the process of opening a bank account for a club, society, or association. Also learn various types of savings accounts available, the documents required, and any potential fees or charges you may incur. 

Step 1: Go to your bank’s website. Look for the “Apply for Savings Account” or “Open Savings Account” tab. 

Step 2: Banks offer different types of savings accounts, and you should choose one that fits your organisation’s needs. Look for useful features of savings accounts like reasonable maintenance fees, 24*7 access to your funds, ATM facilities, competitive interest rates, and online banking facilities.

You can use a savings account calculator offered by banks on their websites to estimate your earnings through interest. Just enter account balance and interest rate in the calculator and get a clear picture of the long-term benefits of keeping your funds in a savings account. This tool can help you compare different bank savings account interest rates and choose the one that offers the best returns on your deposit.

Step 3: Fill out an application form and provide your club, society, or association’s name and address, along with details of signatories who will have access to the account. Make sure to gather all necessary information and double check that it is accurately provided in the application form. Any inaccurate or incomplete details can delay the account opening process or lead to rejection of your application. 

Step 4: Upload KYC and official valid documents of the organisations and authorised signatories. Contact your bank beforehand to know the exact documents to open a bank account online to speed up the process.

Step 5: Submit your form online and wait for the bank to review and approve it. Officials can call you back for more documents, verification, or added formalities. Once approved, the bank will share your account details and other information with you to operate your account. Now you can manage your finances through this exclusive savings account. 

The bottom line

Opening a bank account for your clubs, societies, or association is a smart decision to manage and track finances effectively. Features like easy access to online statements, convenient fund transfers, automatic payments, and budgeting tools can help you track your organisation’s expenses, income, and transactions to maintain transparency and accountability. 

By separating your group’s money from personal finances, you can also prevent confusion and minimise errors. So, a savings account for your organisation is a small but wise investment that can bring significant benefits in the long run.