Banks offer numerous types of accounts to meet the diverse needs of individuals, companies, corporations, and more. Among these account types is the current account, designed to meet the needs of those who frequently transact. This generally caters to business owners.
There are various features and benefits that make a current account a popular choice. Read on to learn more about its features, benefits, and more.
Banks offer current accounts to those who need to transact frequently and regularly. As such, the account becomes an ideal and popular option for business owners, merchants, corporations, and anyone with many financial transactions regularly.
Banks allow you to carry out transactions through various modes – cheques, DDs, electronic transfers, and more. You may also get an overdraft facility through which you can withdraw over and above your account balance.
This provides you with better liquidity and access to your funds. As such, banks do not offer interest on the balance you maintain, as with a savings account.
Overdraft facility to meet financial requirements without any worries
Banks offer different types of current accounts to ensure that you can have an account tailored to meet your business requirements.
Given below are some common current account types:
This account offers the standard features of a current account – high transaction limit, DD, OD, cheque books, and more. However, you do not receive any interest in this account.
An upgrade to the standard current account, banks offer numerous additional perks. These exclusive benefits allow you to customise the account per your business requirements.
Similar to the standard current account, this account has many features of the current but not all. For example, some banks may not offer an overdraft facility in a basic account.
This account is a mix of standard and premium accounts. Banks also offer additional perks such as insurance and exclusive offers. You can leverage these benefits and offers to better operate your business.
As the name suggests, this account facilitates international transactions regularly. As such, it is best suited for those situated outside India or those who want to transact in foreign currencies frequently.
Given below are some general documents that you will need to furnish to open a current account:
Business documents as per entity type
Cheque for account balance requirement
Please note that these requirements may vary depending on the bank you choose. You can check and confirm the same on the bank website or at the time of account opening.
A savings account is a deposit account designed to encourage you to save and earn interest on the funds maintained in the account. In comparison, a current account is designed to facilitate the daily transaction requirements of businesses and offers no interest.
The minimum balance requirement for a current account varies depending on the bank you have the account with and the type of current you have.
Yes, some banks offer zero-balance current accounts. AU Small Finance Bank, Jana Small Finance Bank, Axis Bank, HDFC Bank, Bank of Baroda, and ICICI Bank are leading banks offering this option.
The main benefit of opening a current account is that you enjoy the benefit of liquidity. You can also carry out daily transactions more frequently, as there is generally no limit on the number of transactions.