Primarily, there are two categories of bank accounts, viz., savings accounts and current accounts. While a savings account is for general individuals, a current account caters to the needs of businesses. A current account, also referred to as a financial account, is nothing but a deposit account meant for undertaking a large number of transactions frequently. This account can be managed solely by a businessperson or jointly by an organisation.
Current accounts deal with a significant number of liquid deposits and countless transactions. Hence, unlike savings accounts, they do not come with interest. Irrespective, current accounts are preferred by all proprietors, firms, trusts, and public and private companies for the services they provide and the benefits they offer.
Current accounts give account holders limitless deposit and withdrawal opportunities without prior notice. The main purpose of this type of account is to facilitate large financial transactions of businesspeople and organisations smoothly and efficiently.
What’s best? You can open a current account online with ease!
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Do you need to register a firm to open a current account?
- For opening a personal current account, you can simply submit your residential proof and photo ID proof.
- You need to submit a company incorporation certificate as a document of proof, For opening a current account for a Private Limited Company.
- For opening a current account for a Sole Proprietorship firm, you need to submit MSME or GST registration documents of proof.
- If you plan to open your Company bank account, then you must register your company with a government-approved authority.
What are the types of current accounts?
As several businesses have varied needs and requirements from the accounts, banks offer different types of current accounts to firms and businesses to carry out their business efficiently. Before opening a current account, make sure that all your business needs are met. Ensure you take into consideration that different banks may offer different current accounts.
Take a look at the different types of current accounts that the majority of banks offer
a) Standard Current Account
With this account, you must maintain a minimum monthly average balance (MAB). You do not get any interest on the money deposited in your account, irrespective of the time. You get chequebook services, a debit card to withdraw money, and an overdraft facility.
b) Basic Current Account
This account is best fit for pensioners and young people who have less income. It helps manage finances with ease. However, this account comes with withdrawal restrictions.
c) Premium Current Account
If you need to carry out high-value transactions frequently, then this account will suit you well. This account comes with exclusive offers.
d) Packaged Current Account
If you need to go beyond just banking needs, then opt for this account as it offers medical support, travel insurance and other perks and privileges.
e) Foreign Currency Account
If you are an NRI or someone who deals with frequent transactions in foreign currencies, then this account is best for you!
Also read: Top Home Based Businesses Can Lead to a Profitable Future
