Broadly, there are two types of bank accounts – savings accounts and current accounts. While the savings account is meant for personal savings, the current account is meant for organisations, firms, enterprises, and businessmen who make a higher number of transactions on a regular basis.
Let’s learn more about the current account.
Current accounts are usually more famous with organisations and businesspeople who are always carrying out limitless transactions throughout the day. The current account, just like a savings account, allows deposits and withdrawals, just in higher amounts.
As the fluidity of the accounts is high, the current accounts don’t offer any interest on the deposited money. These accounts also don’t have set limits for the number of transactions.
What are the advantages of opening a current account?
The current accounts permit a significant volume of transactions. A current account offers unlimited withdrawals in accordance with the transaction fees.
Mostly, there are no restrictions whatsoever on the deposits made in the home branch. You can also make cash deposits in other branches of the bank by paying a small amount.
If you want to make direct payments to your creditors, then current accounts at banks offer the facilities like cheques, pay orders, and demand drafts. Current accounts also offer overdraft facilities. Nowadays, a few banks have started giving a small interest on the deposited money to lure more people.
Current accounts also help creditors to know your creditworthiness. This comes in handy if you want to expand your business and need the help of creditors.
What are the types of current accounts and limits?
Taking into consideration several banking needs and requirements of the businesspeople and firms, banks offer a range of current bank accounts.
As there are different current accounts, it becomes imperative to know which account would suit the nature of your transactions before you undertake the current account opening procedure.
1) Standard Current Account
In this type of account, you need to maintain a minimum monthly average balance. No interest is offered on your deposited amount. You are given a cheque book, debit card and overdraft (OD) services.
2) Basic Current Account
This type of current account is great for audiences with less income, young people, etc. You can manage your finances easily with this account. You must note that there are limitations to your daily cash withdrawal limits.
3) Premium Current Account
You get a lot of perks and exclusive offers with this type of current account. If you have a large number of transactions, then you can opt for this account.
4) Packaged Current Account
Along with more perks and offers, this account comes with medical support, travel insurance, and more. If you frequently travel for business, then you can go ahead with this account.
5) Foreign Currency Current Account
You can carry out many transactions in foreign currencies with this type of current account. This type of account is best for NRIs.
Note that daily limits of withdrawals and deposits depend on the type of account and bank. Thus, make sure you confirm the limits before opening your current account.
