What you need to open a bank account:

You can open a bank account online or at a branch, if the bank has
brick-and-mortar locations. You'll need to provide the same
information whether you're opening a savings account or other
deposit account. The minimum information that banks are required
to get from account applicants are name, address, date of birth and
an ID number.
Here’s a more detailed list of what you’ll need in order to open your
new bank account:
1. A valid, government-issued photo ID, such as a driver’s license or
a passport. Nondrivers can get a state ID card at the Department of
Motor Vehicles office.
2. Other basic information, such as your birthdate, Social Security
number or taxpayer identification number, or phone number.
3. An initial deposit is required by some banks, but other banks let
you open an account without a deposit. Skip ahead to learn more
about account funding.
Depending on your circumstances, you might need a few other items,
too.
4. Identification details for other applicants, if you’re opening a joint
account. Because the account will be owned by multiple people, the
bank will want all owners’ identification and personal information.
5. A co-owner if you’re not yet 18. Ask a parent or legal guardian to
sign legal documents with the bank.
If you’re undocumented (and don’t have a Social Security number,
for example), banks typically require your permanent (foreign) and
local addresses and individual tax identification number (ITIN), and
one or two of the following documents:
.One or two forms of photo identification such as an unexpired
passport (including foreign passports), a government-issued driver's
license (including foreign licenses), a citizenship card or a consular ID.
ID from your school or place of work or a Visa or Mastercard credit
card or debit card may sometimes be accepted.
.Proof of residency such as a current rental agreement, utility bill or
paystub showing your name and U.S. address.

What Types of Bank Accounts Are There?

When you're figuring out where to keep your money, you'll come
across several types of bank accounts. The four basic types are
checking account, savings account, certificate of deposit and money
market account.
Each kind of account serves a different purpose. For instance, a
checking account is geared toward covering everyday expenses,
while a savings account is designed to help achieve short-term
financial goals.
Checking Account:
A checking account enables you to safely store money for everyday
expenses like rent, groceries and utility bills. Typically, a checking
account lets you make payments with a check or through a website
or app. In addition, an account holder usually gets a debit card to
make in-person or online purchases, and to deposit or withdraw
money at ATMs and other places
Savings Account:
A savings account, which earns interest, primarily serves two
purposes:
.Setting aside money for short-term financial goals, such as a vacation
or a down payment on a car.
.Creating an emergency fund.
A savings account generally doesn't let you write checks and doesn't
offer debit cards. Savings accounts normally offer ATM cards, though.
An ATM card allows an account holder to withdraw money at an
ATM.
Some financial institutions might limit the number of savings
withdrawals or transfers you can make each month.

Certificate of Deposit:
A certificate of deposit, or CD, is a type of savings account.
Unlike traditional savings accounts, the APY and withdrawal date for
a CD are fixed. The average rate for a one-year CD was 1.72% as of
July 2023, according to the FDIC.
Generally, CDs provide higher APYs than high-yield savings accounts.
Withdrawing money from a CD before the agreed-to period ends may
result in an interest penalty. You typically can't make additional
deposits after the initial deposit.
Money Market Account:
A money market account is an account that earns interest and is
similar to a savings account. MMAs can help you meet short-term or
long-term financial goals.
What sets MMAs apart from savings accounts and checking accounts
is that they typically offer higher interest rates, require higher
minimum balances and opening deposits, and restrict certain
withdrawals and transfers.
As of July 2023, the average interest rate for an MMA was 0.63%,
according to the FDIC. However, some MMAs were paying APYs
above 5% in August 2023.

What’s the Difference Between Business and Personal

Accounts?
business and personal accounts aren’t that different. You withdraw
and deposit money in business checking and savings accounts the
same way you do with personal accounts, and a business credit card
won’t let you do any transactions you couldn’t do with a personal
credit card.
However, there are some fundamental differences, and knowing
what those differences are can be a tremendous help if and when
you decide to start your own business.
Business Accounts Require More Documentation:
The first difference between a business account and a personal
account is the documentation you’ll need to open a business
account. In addition to needing a valid government-issued ID and
social security number for anyone who wants to do business on
behalf of the company, you’ll also need:
.The business’s Employer Identification Number (EIN) or Federal Tax
ID number
.Legal documentation that proves when the company was formed
and filed with the secretary of state
In addition, you might need additional documentation that depends
on whether your business is
Business Accounts can Have Multiple Authorized Users:
This is one of the biggest ways a business account differs from a
personal account. While a joint account might have two people that
use the account to conduct transactions, several more people can
use a business account.
Business Accounts Have More Fees:
While no one likes to pay fees, having fees on a business account is
understandable. Businesses deal with more money and more types of
transactions than individuals do, and as a result they take up more of
a financial institution’s resources. The increased fees reflect that.

Difference between Islamic Banking and Conventional

Banking
Islamic Banking
Profit on trade of goods or
charging on providing service is
the basis for earning the profit
Conventional Banking
Time value is the basis for
charging interest on capital

Islamic Banking operates on the Interest is charged even in case if

basis of profit and loss sharing. the organization suffers a loss.
In case, the business has Therefore, it is not based on
suffered losses, the Bank will profit and loss sharing.
share these losses based on the
mode of finance (Mudarbaha
and Musahrakah).
Islamic Banking tends to link Conventional Banks use money
with the real sectors of the as a commodity which leads to
economic system by using trade inflation.
related activities. Since the
money is linked with the real
assets, therefore, it contributes
directly in the economic
development.