When it comes to a current account, it would not be wrong to say that it is a great way to manage your day-to-day money. It is a form of demand deposit that allows, among others, payment by way of cheques. This account type is mainly used by businessmen, business enterprises or high worth individuals, who deal with a lot of third party cheques and drafts or at times need to borrow money from the bank against some security. Well, which simply means that this type of account is generally not used for the purpose of investment/savings.
Usually, the deposits in this account are liquid and there are no limits on the number of transactions or the amount of transaction in a day. Most of the current accounts are firm/company accounts, which is mainly used to make a number of deposits and unlimited withdrawals subject to a minimum balance. However, the limit of minimum monthly balance differs from bank to bank, which also comes with service charges. Generally, a current account does not provide interest and comes with an overdraft facility that an account holder can avail up to an agreed limit.
Types of Current Accounts
If we talk about the types of current accounts, different banks offer different types of current account schemes. So, let’s take a look at the table below, showing the types of current accounts offered by top 5 banks.[table “5670nbspresponsivescroll” not found /]
How to Open a Current Account?
One can easily open a current account in any bank either online or offline. If you want to open the account online, download the account opening form, fill your personal as well as professional details and upload the required proofs online OR you can choose to visit the nearest bank branch, ask for the form, fill the relevant details and submit the duly signed form with the required documents and passport sized photograph. After the successful verification in both the cases, your account gets opened.
Who Can Open a Current Account?
Want to who is eligible to open this account? All you need to do is just read the post below.
- Sole Proprietorships
- Hindu Undivided Families (HUF)
- Associations / Societies and Clubs
- Limited Companies
- Valid KYC Documents
- Companies or trusts must submit a certificate of incorporation and memorandum of association
- Partnership agreement in case of partnership firms
- ID and residence proof of all partners
- A color photograph of the applicant(s)
- Cheque from existing savings account for account opening
- Companies should provide the address of the communication
- Proof of the existence of entity: Trade license/GST Identification Number/SSI Certificate/IPR Registration, etc
Features & Benefits
- Overdraft Facility is Available
- Prompt and Easy Fund Transactions
- Unlimited Withdrawal and Deposit Facility
- Comes with Nomination Facility
- Helps in Making Direct Payments using Cheques, Demand Drafts or Pay Orders
- Provides Internet Banking and Mobile Banking Facilities, etc.