5 Types of Current Account
If you’re considering to open a bank account, and don’t know which type of account is ideal for your requirements.
We’re here to tell you about what a Current Account is and the different types of Current Accounts suitable for your business.
To begin with, let’s find out what is a Current Account.
They are interest-free accounts which are favourably recommended for those customers who run a small or medium business and require a continual service for banking transactions. However, these accounts require a minimum balance to be operated.
There are no limitations on the number of transactions carried out per day. Additionally, you can avail an overdraft facility through your Current Account.
Let us take a look at different types of Current Accounts offered by the banks to suit the differential needs of their customers. Below are a few of the common types of Current Accounts offered by the banks.
• Premium Current Account
The premium Current Account as the name suggests provides a multitude of customised and exclusive features for the account holder. This account is crafted to suit a selection of transactions as per the requirement of the customer. This account is suitable for those individuals who intend to perform a high level of financial transactions.
• Standard Current Account:
One of the vital types of Current Account is the Standard Current Account, also known as the basic deposit account. It is a non-interest bearing account that has a few specifics. A minimum average amount needs to be maintained in this account every month. Additionally, this account offers standard services like NetBanking, SMSBanking, cheque book facility with a bulk of cheque leaves, debit card, overdraft facility for a stipulated amount on the discretion of the bank manager together with a no-cost NEFT and RTGS transactional service.
Read more Current Account Minimum Balance here.
• Packaged Current Account:
The Packaged Current Account is one of those types of Current Account, which is in between the premium account and standard Current Account. It is better than the standard account with a decent amount of benefits along with additional features such as travel insurance, accident insurance, etc. However, it is not tailor-made as the Premium Account to provide the customer with a perfect account fit.
• Foreign Currency Account :
This type of Current Account is primarily for those businesses who require the assistance for outward or inward remittances in foreign currencies daily. The basics of the account functionality remain the same.
• Single Column Cash Book :
If you are running a business without maintaining a bank account, the Single Column Cash Book Account or Simple Cash Account is the best deal for you. This account does not provide any feature such as an overdraft facility but enables you to monitor and maintain your daily transactions via two separate columns of debit and credit of finances.
Majority of the banks offer varied services and different types of current account that are curated for their specific customer base. Take, for instance, HDFC Bank provides a wide array of Current Accounts to suit every business need possible.
Looking to open a Current Account? Get started here.
*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.