Banks have different types of accounts that cater to individuals having different sets of interests. Among different accounts, the two most popular types of bank accounts are current account and savings account. While a savings account caters to individuals, a current account is designed for businesses. Current accounts come with high transaction limits on cash deposits and withdrawal.
Read on to know more about current accounts.
A current account is a facility banks provide for business owners with a higher volume of daily transactions. It is significantly different from a savings account meant for people who want to maintain their savings over time. A current account has several perks associated that are favourable for firms, companies, businesses, and public enterprises.
Customers can easily customise their current accounts based on their requirements. This is an additional facility provided by the concerned bank and differs based on the customer and frequency of transactions. Furthermore, current accounts deal with deposits that are liquid in nature and hence require a higher minimum balance at the time of account opening.
Following are the features of a current account:
The benefits of a current account are listed below:
Apart from the benefits mentioned above, there are certain disadvantages of a current account. They are as follows:
There are mainly five types of current accounts. They are listed below:
If you are wondering how to open a new current account offline, follow the steps given below:
Following are the documents required for a current account:
A savings account is designed for salaried individuals who want to deposit their money in an account that would help them earn interest over the deposited amount. On the contrary, bank current accounts are usually interest-free deposit accounts that are designed for businesses to simplify daily transactions. Savings account transactions are limited whereas current accounts have high transaction limits and have (usually) zero limitations on withdrawals. However, the minimum balance requirement for current accounts are significantly higher than that of savings accounts.
Also Read: How To File Income Tax Return-2?
Current accounts ease the business operations, especially for start-ups as they help the owner build a firm with a regular flow of income. By opening a current account in your name, you will be able to enjoy a lot more than just monetary deposits and withdrawals. You will also get additional benefits in the form of cheques, DDs, net banking, etc.
Ans: You can receive your registered email ID details after opening a current account.
Ans: The minimum age requirement for a current account is ten years. However, only a person who is or above 18 years of age can avail of the chequebook facility.
Ans: No, proper and complete documentation is required for opening a bank account.
Ans: You only have to submit KYC documents once for opening a current bank account.
Ans: You will get an SMS banking facility under a standard current account.
Ans: Current accounts are interest-free deposit accounts. So, you won’t be earning any interest on your deposits. However, some banks may provide interest on current account deposits. Check with the concerned bank regarding this.
Ans: The minimum balance required to open a current account could vary from bank to bank and could range from Rs.10,000 – Rs.1 lakh.
Before you go…
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.