When it comes to a current account, you probably have lots of questions. Is there a limit on the amount I can spend? Is there an upper limit for monthly deposits? Do I need to pay another fee for exceeding these limits? Are there any other limitations that you should know about before opening a current account?
A current account is a type of bank account that does not offer check-writing privileges, but does offer a number of features as alternatives.
It’s a useful and popular personal finance tool for people who don’t need the added expense and responsibility of a current account. The primary advantage of keeping your money in a current account instead of a standard savings or checking account is the availability of cash at any time by electronic transfer or ATM withdrawals.
What Is A Limit On A Current Account?
A current account has certain limitations on the amounts that can be deposited and withdrawn over a specified period. There is a daily maximum amount on deposits, withdrawals, and transfers. There is also a monthly maximum that each account holder can spend or deposit. If you exceed the daily or monthly limit, you might have to pay a fee or your account may be closed.
The amount of the monthly limitation is usually $500. Daily limits are usually higher— $2,400 per day. But keep in mind that you can’t withdraw the same amount two days in a row. The system keeps track of that and won’t allow you to do it again for two days. You can also have more than one current account. Just make sure that you are aware of each account’s daily and monthly limits. If you want to keep track of your spending, you can use a budgeting app.
Using a Current Account Responsibly
A current account is not a savings account. It is not intended to be used as a safety net or long-term investment. If you are simply keeping your excess money in a current account, you are not making the best use of it. Current accounts offer easy access to your money. If you need to be able to spend your funds at any time, then a current account is the right choice.
If you have a large amount of money that you can’t afford to invest, you should consider opening a high-yield savings account or a certificate of deposit (CD). If you are saving up for a long-term goal, you should look into a savings account or a money market account.
Will There Be An Annual Fee For My Current Account?
Most banks charge a fee for each current account that you open. Some will waive the fee for the first year in order to entice new customers. If you are only using the account for one transaction a month, then it is unlikely to be worth the fee. If you are using the account for recurring monthly transactions, then the fee is probably worth it.
How Much Can I Spend With A Current Account?
The monthly maximum amount that can be deposited or withdrawn from your account is $5,000. If you need to spend more than that, you should probably have a checking account. If you keep a large amount of money in your current account, the bank may close your account. You should have less than $5,000 in the account if you want to avoid this.
Are There Limits On Daily Or Monthly Deposits?
If you are depositing a large amount of money in your current account, the bank may require you to have another account with them. You may also be required to show documentation on the source of the funds. If you are depositing smaller amounts of money into your account on a regular basis, there will not be a problem.
Should You Pay Another Fee If You Exceed The Limitation?
You should check the terms and conditions of your account before you open it. There may be a fee for exceeding the limitations, but it is not always the case. You may be asked to provide more documentation or simply show that you have the ability to cover the excess amount.
A current account is useful for people who don’t need the added expense and responsibility of a checking account. It’s a good choice if you need easy access to your money or if you have a large amount of money that you can’t afford to invest. If you want to use a current account, you need to know that you can’t spend more than $5,000 per month. That amount includes any deposits and withdrawals. Once you reach the daily or monthly limit, you won’t be able to make any more deposits or withdrawals until the next day or month.