A current account is a type of deposit account for businessmen and individuals who carry out high number of financial transactions on a regular or daily basis. There is no limit to the number of transactions in a day on this type of transactional account. A current account is for the convenience of business as it is one of the most liquid type of bank accounts. It is not for the purpose of investment or savings. Banks usually do not pay an interest on the account balance. Current accounts allow the accountholder to make payments to creditors through cheque and other facilities.
In this post, we will talk about the features of current account, documents required to open the bank account, how to open a current account, its benefits and types, different access points, minimum average balance, and FAQs.
As understood, a current account is crucial and necessary for business. Banks provide a host of services and benefits on these accounts to match the requirements of a business. Below given are some of the features of current account.
You need the following documents to open a current account:
NOTE: All the documents must comply with the KYC guidelines to open a current account.
You can open a current account in any of the banks in India. All you have to do is visit the bank with required documents and the duly filled and signed application form. After the verification of documents, the bank will activate your Current Account. As an account holder, you must maintain a minimum quarterly average balance in the account. Usually, the criteria for minimum quarterly average balance is Rs. 5,000 to Rs. 10,000 or more.
Below given are the benefits of a current account:
Banks may offer current accounts as per the need of your business. This is why you should know the nature of transaction to carry out before opening a specific current account. Below, we have mentioned some of the current accounts and their types:
Here, there is no interest offered on the deposit account. You need to maintain a minimum balance and the required monthly average balance. Some of the facilities include debit cards, cheque books, overdrafts, and a lot more. Some of the common features are SMS banking, free NEFT and RTGS transactions, internet banking, etc.
These accounts offer a number of perks to the account holder. Some of the features to boast about are medical support, travel insurance, roadside assistance, and more.
This account provides exclusive benefits and offers. It comes with customized features suited specially to undertake high financial transactions.
Also known as Simple cash accounts, this current account allows daily transactions. But this account does not offer an overdraft facility. This bank account is beneficial to businesses that do not have any other bank account. Basically, a Single Column Cash Book records daily transaction under separate columns for credit and debit.
This current account is best for businesses or individuals who make frequent transactions in foreign currencies.
You can access your current account using the following methods for daily cash transactions:
Here is a list of some of the banks and their MAB or Monthly Average Balance requirements:
12 times the MAB
10 times the MAB
Up to Rs.2 lakhs
Rs.1 lakh (quarterly)
Up to 10 times of AMB
Up to Rs.5 lakhs per day
Punjab National Bank
Up to Rs.2 lakhs per day
Here are the FAQs on Current Account:
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