Summary:
A current account is also known as a financial account. It can be defined as a type of deposit account that is maintained by individuals who can carry out a higher number of transactions with banks on a daily basis.
The current account is created by the bank on the applicant`s request and is made available on a frequent or immediate basis. It easily allows you to make payments to creditors through the cheque facility offered by the bank.
Here are the following benefits of having a current account:
- It Offers Unlimited Transactions
A business current account enables you to perform unlimited transactions in tune with the nature of your business. You don`t have to limit your transactions just as you would do with your personal savings account.
- It Offers Overdraft Facilities
Another crucial benefit of having a current account is that you can easily avail an overdraft when needed. An account holder can overdraw the balance in his account on a temporary basis to overcome any shortfall in funds. Since it is short-term borrowing, it is at the bank`s discretion if they want to levy any kind of interest or not. However, a normal savings account does not offer a facility such as overdraft. A current account can help in meeting your need for funding in the short term.
- It Offers Multi-City Banking
With banks embracing online banking services, you can operate the same business/current account from multiple cities, which will also help you in consolidating your current account transactions seamlessly.
- Ability to Prove Creditworthiness
Sometimes your creditors may want to check your creditworthiness before advancing credit to you. Operating a current account can easily help you in facilitating this process. You can give them a letter issued by your bank stating that you hold a current account, and alternatively, interbank connections can help check your creditworthiness.
- Ease in Banking Transactions
When compared to a savings account, a current account offers added benefits. With rising competetion, banks have started offering value-added services at no extra cost to current account holders. The account holder can enjoy a certain number of free pay orders and the facility to transfer funds instantly using NEFT/RTGS.
Additionally, banks also offer different types of current accounts to suit the differential needs of their valuable customers. It is a good practise thus to clearly convey the nature of transactions you wish to carry and open the apt current account.
Here are some of the common types of current accounts offered by banks:
- Standard Current Account
It is a non-interest bearing account that comes with minimum balance requirements and a stipulated monthly average balance. It offers cheque books, debit cards, and overdraft facilities. Other features may include SMS banking, internet banking, and free RTGS and NEFT transactions.
- Packaged Current Account
The packaged current account offers a lot of perks to account holders. The account comes with additional features such as travel insurance, medical support, and roadside assistance.
- Single Column Cashbook
This account is meant for daily transactions, but it does not provide features such as an overdraft facility. Single column cashbook account is the best choice for businesses that have not historically maintained bank accounts.
- Premium Current Account
Premium current account comes with exclusive offers and benefits for the accountholders. The account offers customized features, and it is best suited for those who carry out high financial transactions.
- Foreign Currency Account
This account is best suited for those individuals and businesses who carry out frequent transactions in foreign currencies.
If you are opening a current account for the first time, you should consider the option of opening your current account with reliable and credible banks such as Axis Bank. They offer "Anytime, Anywhere banking", as it comes with user-friendly online/digital banking options for you like Internet and Mobile Banking. With technological advancements, now it is easy to open a current account. You can open a digital current account at zero monthly service charge and enjoy free times membership. You can avail of a flat 5% cashback on Amazon and a minimum 5% cashback on other 20+ major brands through grab deals.
Make your banking experience seamless and hassle-free!
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