Opening a current account can be beneficial for you if you are looking for liquidity when it comes to financial activities, such as running a business or an enterprise. You can open a current account with most banks, which does not require a long, drawn-out process to complete. 


This can be useful for individuals or entities such as businesses, professionals, traders, wholesalers, and manufacturers, among others. These accounts not only help in carrying out all day-to-day transactions but also provide a wide range of benefits. 


Read on to learn more about the different types of current accounts, along with their varied features and functions. Learn more about these in the sections below:

Different Types of Current Accounts

The following are some of the major types of current accounts and how they operate:

1. Standard Current Accounts

These are some of the most common current accounts available, requiring the maintenance of a specified minimum monthly average balance. Furthermore, standard current accounts do not necessarily provide any interest on the deposits. However, they provide benefits such as debit cards, overdraft facilities, internet banking, checkbooks, and more. 

2. Basic Current Accounts

Such current accounts are tailored for individuals with lower incomes, such as college students, pensioners, or those who require immediate access to their funds. This can help them manage their accounts more efficiently and systematically. However, they feature more restrictions in their functioning and usage in comparison to types of current accounts, such as a daily transaction limit. 

3. Packaged Current Accounts

This type of current account features more benefits than the standard current account. These include added rewards, different kinds of insurance policies, medical support, roadside assistance, and more. Most packaged current accounts usually come with a monthly fee and other related charges. 

4. Premium Current Accounts

Premium current accounts are more suitable for entities such as businesspersons, entrepreneurs, traders, corporates, and High Net-worth Individuals (HNIs) who conduct large volumes of transactions of higher values. These offer features and benefits that are customised to their needs and requirements and help them conduct all transactions in a smooth and seamless manner, without delays. 

5. Foreign Currency Accounts

Such accounts are ideal for those residents or Non-resident Indians (NRIs) who wish to store their funds in foreign currencies and conduct transactions through them accordingly. The account is through most issuers in the country, which permit various currencies such as USD, Euro, GBP, JPY, and CAD, among others. These may also allow you to earn interest on your deposits. However, these accounts are not covered by the national deposit insurance schemes. 

6. Cash Management Current Accounts

This type of premium account caters to businesses that conduct high volumes of transactions. Most of them feature cash management tools such as automated collections, payments, and account reconciliation. Furthermore, these can also provide other features like real-time analytics and reporting, among others. 

7. Single Column Cash Book

Single-column cash book accounts provide only a few basic features of a current account. However, their primary purpose is to help provide a space to track and manage your day-to-day transactions through two separate columns: debit and credit of finance. It is important to note that only cash-pertaining transactions are recorded in this account, rather than cheques issued/received or purchase/sale discounts. 

Major Differences Between Various Current Account Types

Below mentioned are some of the differences between the different types of current accounts:


Standard CA

Basic CA

Packaged CA

Premium CA

Foreign CA


Allows frequent financial transactions for various business-related purposes

Provides immediate access to funds for individuals with lower incomes

Ensures added benefits over standard CAs

To cater to businesses with high volumes of transactions, and can be customised to their requirements

Permits resident Indians or NRIs to store foreign currency funds in such accounts

Suitable For

All individuals

Lower-income group

Medium-sized businesses or enterprises

Large-scale businesses or enterprises

Indian residents and NRIs

Benefits Included

Checkbooks, debit cards, Internet banking, etc.

Systematic and efficient account management

Various rewards, insurance policies, roadside assistance, medical support, etc

Customized features/benefits as per requirements for smooth transactions

Allows storage of various currencies, including USD, Euro, GBP, JPY, and CAD, among others.

Maintenance Fees/ Other Charges

Predetermined minimum monthly average balance to be maintained

Predetermined minimum monthly average balance to be maintained

Monthly fees and other charges can be applicable

Predetermined minimum monthly average balance to be maintained

Foreign exchange transaction charges are applicable


Provide little to no interest rates on deposits

Restrictions such as daily transaction limit and more

Extra charges can make packaged accounts expensive and not worth the benefits

The minimum monthly average balance to be maintained can be quite high in such accounts

High-interest rates on transactions can make it quite expensive to use often

With this, you may have gotten a much better and more extensive understanding of the various types of current accounts. You can choose the most appropriate type of current account based on your preferences and financial requirements, along with an account’s cost-effectiveness. 


Who can be eligible for a current account?

You can open a current account if you fall under categories of people/entities such as resident individuals, sole proprietor firms, partnership firms, Hindu Undivided Families, and public and private limited companies, among others.

Can current accounts be taxable?

No, since current accounts usually provide zero interest on the deposited amount, they do not charge any taxes. This makes using them highly ideal for businesses and enterprises.

Can I use a current account for personal use?

It is not recommended to use a current account for personal use, since these majorly cater to businesses’ or enterprises’ needs. Individuals can make use of savings accounts for all their personal banking requirements. 

Invest In Other Products

Loan Offer
Download App
Credit Score