What Is A Current Account & Why You Need One For Business?

You will see different kinds of customers whenever you visit a bank. Some are talking about savings accounts; on the other hand, some are talking about current accounts. A savings account is very common, and almost everyone has one. The current account is new, especially for those not associated with business-purpose transactions.

Every bank or financial institution has different sections to cater to current account holders.  A current account holder can enjoy more transaction services than any savings account holder. Besides, a current account holder is likely to get more benefits from the bank in terms of instant personal loan approval or investment deals.

You will find detailed information if you want to learn more about a current account. Check it out here.

What is a current account?

Companies, firms, public enterprises, and businessmen who typically conduct more frequent transactions with the bank use current bank accounts. Deposits, withdrawals, and contra transactions are part of the current account. A current account is also known as a Demand Deposit Account. Most commercial banks and all government banks allow you to open a current account to avail of higher benefits with unlimited transactions. Being a zero account, a current account is frequently linked to significant transactions. These accounts don’t pay interest because of the flexibility they offer. Additionally, there is typically no cap on the number of transactions that can be made with these.

Different types of current accounts

There are a few different types of current accounts that have different features. Usually, these different types of current accounts benefit large businesses, small startups, etc. Here are the various types.

  • Basic current account
  • Premium current account
  • Foreign currency current account
  • Cash management current account
  • Trade current account

As each of these types has different kinds of benefits, reviewing those with the bank or any other financial institution is always recommended.

What are the features of the current account?

A current account is equipped with bunches of features. Here are those features.

  • Easy to access: Customers who have current accounts have quick access to their money. It is also very simple to pay bills or withdraw money from an ATM with the availability of debit cards, online banking, and mobile banking services from associated banks.
  • Unlimited withdrawal option: A business will always experience new growths like branch openings, increasing product lines, hiring more people, etc. With a current account, you will not have any monetary restrictions for expanding your business. There is no such withdrawal limitation.
  • Constant banking support: As a current account holder, you can access unlimited free chequebooks, timely notifications about the bank account, cheque clearance details, etc. Also, you can contact any banking associate for any assistance if required.
  • Leverage for loans: As a current account holder, there will be a lot of benefits to obtaining online personal loans anytime. The bank will consider that a current account holder is capable of repaying any loan, managing cash flow in the business, etc. Consideration of these factors will help you get many benefits while you apply for online loans.
  • Transparency: A current account is straightforward in terms of any work like cash withdrawals, cash deposits, transactions, online personal loans applications, etc. You can track all the details anytime you need to do so.

Major documents you need to submit

As a current account is directly associated with business-related transactions, there are a lot of required documents you need to submit to open a current account. These documents are

  • KYC details
  • Business registration certificate from the government
  • Business address
  • Pan card associated with the business
  • Transaction proof

Benefits of a current account:

  1. Withdrawal is available anytime to fulfil the cash requirements of the business.
  2. Some banks or financial institutions consider depositing cash or cheques in other branches without hassle. It is convenient for business owners to deposit huge cash if needed.
  3. The overdraft facility is another benefit that all current account holders enjoy.
  4. Business owners can enjoy different bank accounts for personal and business-related finance.
  5. Online banking service is given to the current account holder so that they can check their account details or go for an online transaction from their convenient location.
  6. A current account can increase the creditworthiness of the account holder.
  7. A current account is even more appealing to its users when small interest earnings are on the account balance.
  8. There are no charges for unlimited transactions through the current account.

As you have come so far, you are already acquainted with the details of your current account. These days, the features and benefits of current accounts can be accessed through any instant loan app. Some banks also provide wholesome current account services through digital sites so the user can access the account from anywhere, anytime.

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