What is current account ?
It is a transaction bank account for business men, professionals and organisations to enable them to conduct a high number of daily monetary transactions. The account is opened and operated by a single person, jointly by multiple individuals or in the name of a business. It is designed to offer transaction facilities for a business.
Features and Benefits of Current Account
a. Current Account have zero interest rate account.
b. It offers option to avail overdraft facility & loans which are non secured to meet seasonal working capital requirements
c. Allows unlimited withdrawals from home branch and up to a certain limit .
d. It is operated by individuals, proprietors, public and private companies, trusts etc.
e. Has many direct payment facilities such as free cheque leaves, demand drafts, pay orders .
Banks Minimum Average Balance and Withdrawal limit in the TOP BANKS OF INDIA:
ICICI Bank Smart Business Account
Rs. 25,000
Unlimited for base withdrawal and Rs. 50,000 for non- base withdrawals
HDFC Bank Regular Current Account
Rs.10,000 per quarter
Unlimited at base withdrawal
Bank of Baroda Baroda Small Business Current Account
Quarterly Average Balance Rs. 2,500
N/A
SBI Regular Current Account
Rs. 10,000
N/A
Axis Bank Normal Current Account
Rs. 10,000
Rs. 1 Lakh per day
Kotak Bank Edge Current Account
Average Quarterly Balance of Rs. 25,000
Up to Rs. 50,000
Current Account Opening Procedure
· Choose a Bank: first of all you have to Compare and select a bank which provides best customer service and offers the good transactional facilities. You can easily evaluate a bank on its net banking facilities, loan and overdraft facilities, free cheque books, location of base branch .
· Choose a Current Account Type: Banks can offer a variety of Current Account types prepared to meet the requirements of various types of the businesses. Pick the one type which is best for your business then Contact customer care of the selected banks, resolve all your queries and compare their Current Account.
· Visit the nearest branch: Once you choose 2-3 banks and the type of Current Account you would like to open, visit the branch. Collect the opening form and gets better understanding of the account opening process & documents to be submitted.
· Documentation: Go through all terms and conditions and then submit the required documents along with the application form.
· Good to go: Along with the paperwork, it might be possible that bank ask for a reference who introduces you to the bank, if you are not a customer with them already. After that, the bank will give your Current Account kit with all details.
How to Open Current Account Online
The current account can be accessed by online as well as offline. By the online platforms, you can compare the current account interest rates of various banks and choose that which is suitable for you. After choosing a bank, you must need to log in to the selected bank's website and choose open current account option. The online current account portals provide instant current account opening option, with quick documentation and easy eligibility match. In comparison to the offline process, the online process is more time-saving and efficient.
Types of Current Accounts
There are five types of Current Accounts that are typical to all banks offering this service:
· Standard Current Account: In this Current Account has a monthly average balance requirement, offers cheque leaves, overdraft facility and debit cards, net banking etc.
· Single Column Cash Book: This type is more like cashbook that allows transaction but don’t offer other features such as overdraft facility.
· Packaged Current Account: This type of Current Account offers packaged features such as travel insurance & medical facility.
· Premium Current Account: It offers premium services & give benefits with a range of customized features for its high end customers.
· Foreign Currency Accounts: These accounts are for the individuals & businesses that require huge foreign currency transactions to be carried out frequently.
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