Buzz
Banking services encompass a comprehensive range of knowledge and information related to opening bank accounts, applying bank interest rates to savings or loans for business purposes, and more.
By mastering the basic concepts of banking services and knowing how to apply them correctly, you can fully benefit from engaging in transactions with banks.
Exploring the realm of banking services
1. What is a bank account?
- Understanding the concept of a bank account
A bank account serves as a unique identifier for any individual engaging in transactions with a financial institution, namely a bank. Typically designated by a specific numerical sequence depending on the bank, a bank account enables each institution to monitor and oversee user activities effectively. Each bank account is associated with the registered account holder's name and various related details.
Based on user needs, banks have established two main types of bank accounts: Transactional Accounts and Savings Accounts. Each type of account is further subdivided into various account types.
- Requirements for opening a bank account
Generally, there are numerous requirements for opening a bank account, varying from bank to bank. However, there are still certain conditions that are mandatory for all banks when offering accounts to users.
+ According to Circular No. 23/2014/TT-NHNN issued by the State Bank of Vietnam on the opening and use of bank accounts, individuals who are Vietnamese citizens or residing in Vietnam, aged 15-18 and above, possessing full civil capacity, and having sufficient personal assets are eligible.
+ Individuals under 15 years old or those with restricted civil capacity can open bank accounts through legal guardians or representatives.
- What is the maximum number of bank accounts one can open?
Correct. You can indeed open multiple bank accounts, but currently, there is no specific regulation on the maximum number of accounts users can open at banks.
Banks manage users through a customer identification number (CIF), which is linked to information on national identification cards, passports, land titles, etc., enabling you to open multiple bank accounts in different regions or with different currencies like USD, EUR. Of course, your bank accounts will always be meticulously tracked and monitored by the bank.
- Location for opening a bank account
To open a bank account, you can visit branches or outlets of Commercial Banks or State Banks to open an account and engage in transactions, payments, or savings.
2. What is an ATM card? How does the account number differ from the ATM card number?
- Concept of an ATM card
An ATM card is a type of card issued by banks or financial institutions to users for performing transactions and payments such as cash withdrawals, transfers, bill payments, etc., through ATMs (automated teller machines or at points of sale supporting card payments).
ATM cards include debit cards and credit cards and are produced in two forms: magnetic stripe cards and chip cards.
+ Debit card (domestic debit card): is a type of card that allows cash withdrawals based on debiting from your bank account. This means that when you withdraw money at ATMs, your bank account will automatically be debited by the amount you withdrew.
Requirements: Debit cards require the bank account to have available funds and can only be withdrawn within the limit of the available balance. Users will need to maintain a balance to keep the account active.
+ Credit card (domestic and international payment card): simply put, it's a type of card that allows you to borrow from the bank for personal expenses based on a global credit limit. Depending on the card tier, you'll be assigned a specific spending limit. This means you can even withdraw cash or make purchases while having no funds on the card. Importantly, credit cards do not require a bank account balance.
Requirements: Being able to demonstrate financial capacity and liquidity.
However, you'll need to repay any amount spent beyond the limit within 45 days. Beyond that period, you'll incur interest according to each bank's regulations.
- How to use an ATM card
To use an ATM card, you need to visit MBBank, Maritime Bank, HDBank, Vietcombank, etc., ATMs located throughout the country. Then, follow the instructions printed on the ATM usage guide provided when you receive your registered ATM card.
Note that the first time you transact at an ATM, you need to change the PIN for the ATM card for convenient ATM login and to prevent theft.
- ATM locations
ATM locations nationwide are distributed differently among banks, so depending on the bank you are transacting with, you can look it up through the bank's information portal or enter the following syntax on Google to search for a detailed list of ATM locations compiled by Mytour.
“ATM Location + (Bank Name: short name or full name) + Mytour”
Example: ATM Location VIB Mytour
3. Meaning of ATM card number and the difference between ATM card numbers
- What is an ATM card number?
The ATM card number is a lengthy identification number or code specific to the type of ATM card used to identify and manage a user's ATM card. They typically consist of 16 digits and carry the following special meanings:
+ The first digit (MII – Major Industry Identifier) denotes the card type
1&2 : issued by airlines
3: issued by travel or entertainment companies
4&5 : issued by banks and financial institutions
6 : issued by banks and merchants
7 : issued by oil companies
8 : issued by telecommunication companies
9 : issued by governments
>The first 6 digits of the card (including MII) are called the IIN (Issuer Identification Number) used to identify the issuer. For example:
American Express (AMEX): 34**** or 37****
Visa: 4*****
Diner’s Club International: 36****
Mastercard: 51**** to 55****
+ The group of digits from the 7th to the 15th digit (9 digits) is used to indicate the customer's account number. However, this group can be extended up to a maximum of 12 digits (totaling 19 digits)
+ The last digit (16th or 19th digit) is a special digit used to verify and confirm the accuracy of the card. To verify, the Luhn algorithm must be used.
- What is an account number?
An account number is a unique identifier for the account holder opened at banks. Thus, depending on the type of account, whether it's a checking or credit account, it is the number used to link with the ATM card for financial transactions or credit payments.
Account numbers at banks nowadays have very different structures. For more detailed information, you can call the advisory hotline of each bank or visit the bank's branches or outlets directly for explanations.
4. Can you open accounts at multiple different banks?
You can absolutely open accounts at multiple different banks simultaneously as each bank can clearly and thoroughly monitor you through the account number.
5. What is the purpose of opening a supplementary card?
- Concept of a supplementary card
A supplementary card is a card registered and issued by the main account holder for family members. This card is under the name of the main account holder who has the right to decide on deposits and withdrawals from the supplementary card's account. Each main cardholder can have a maximum of 2 supplementary cards.
- Benefits of a supplementary card
Setting up a supplementary card is simple, no income proof required, easily supporting financial services for individuals without the need to open a new bank account. Especially helps the main cardholder manage expenses better.
- Eligible applicants for a supplementary card
Citizens above 15 years old without the requirement for financial capability or income proof. When applying for a supplementary card, you will be given a specific credit limit and an annual fee.
Whether you are a newcomer to banking transactions or have experience opening bank accounts with Vietcombank, Techcombank, VPBank, VIB,..., the basic concepts of banking services mentioned here are the foundation for you to delve deeper and learn how to enrich yourself through engaging in transactions with this particular financial institution.
In the series of articles introduced by Mytour, we've provided detailed insights into opening accounts at Vietcombank, Techcombank, VPBank, VIB, as well as understanding the concept of bank interest rates and how to track interest rates at Techcombank, VIB, TPBank, DongA Bank,... to make informed and effective business decisions, we always emphasize the importance of users researching the banking services of the bank they intend to transact with before visiting and conducting transactions.
Regardless of which bank you use, make sure to schedule regular checks of your bank account. With the sophisticated schemes prevalent today, your account balance could be compromised at any time. Each bank has different methods of checking. If you bank with Vietcombank, checking your Vietcombank account is relatively simple.
We hope the information provided about banking services has been helpful to our readers. Wishing you all success!
