Want to know what a Current Account is and its features?
We have all the answers for you.
A Current Account is a type of deposit account which can be set up only with a bank. It is meant for individuals who require a considerably higher number of transactions daily.
One of the essential features of a Current Account is that it is associated with liquid deposits and offers a wide range of customised selections to assist financial dealings.
Additionally, this type of account enables the customer to make payments through high volumes of cheque facility extended by the bank. Due to the fluidity these accounts offer, they don’t earn any interest. The account typically does not carry a limit on the number of transactions that can be made in one single day. The minimum balance in these accounts is higher.
Take, for instance, HDFC Bank that offers a varied range of Current Accounts to suit your business specifications.
Now let see the features of Current Account in India:
Segregation of personal and business financial dealings :
Even if you’re a sole proprietorship, to carry out any business-related activity, it is always advisable to maintain your Savings Account and Current Account separately. This helps you distinguish between personal and business expenses.
It also enables you to map out financial planning in a systematic manner. Finally, you can view the entire transactional history of your business at any given point in time to ascertain profits or losses.
Business Competence :
When you professionally operate your business, it adds additional value and creates a particular kind of reputation for your brand. Additionally, the Current Account for any business only enhances the value of that business as the cheques, demand drafts, pay orders, etc. are issued with the name of your business.
Establishment of Creditworthiness :
Your Current Account gives an accurate representation of the finances of your business holdings when you intend to expand your business via opting for loans from creditors. A discrepancy free Current Account enables you to obtain a letter from the bank stating your credit score is satisfactory.
Provision for Overdraft :
Even though there is a prerequisite to maintain a minimum balance in your Current Account, one of the essential features of a Current Account is the availability of an overdraft facility for a temporary period to plug any shortfall of funds.
Effortless Banking :
With no limit on Current Account transactions per day, your Current Account is your one-stop-shop for all your business needs. Be it instant transfer of funds via NEFT or RTGS, online transactions, multi-city fund transfer that is withdrawal or deposit at any location of the bank. There are no additional charges for cheques or demand drafts. This is one of the vital features of Current Account in India.
Some banks also offer a zero balance Current Account, where the customer need not maintain a minimum balance.
Looking to apply for a Current Account? Click here to get stared!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
