What is an Individual vs. a Non-Individual Current Account?

Posted on Wednesday, October 16th, 2024 | By IndusInd Bank

Curious about the difference between an individual current account and a non-individual current account? An individual current account is opened in the name of business owners to meet basic corporate needs. In contrast, a non-individual current account is specifically opened in the name of a business and is designed to meet the needs of enterprises. Beyond identity-driven distinctions, these account types differ in aspects such as features, requirements, and benefits.

Being aware of these differences in detail is essential for choosing the correct account type to match your needs, particularly in the context of financial management. Read on to learn about the specifics of each account type and how they cater to distinct financial needs.  

Major Distinctions Between Individual and Non-Individual Current Accounts

Account Holders

Individual current accounts are opened by a single individual to manage corporate financial needs. The features offered by these accounts are higher deposit and withdrawal limits than regular savings accounts, a chequebook facility, and online banking services to cater to the evolving needs of the holders.

Non-individual current accounts are held by companies, businesses, trusts, partnerships, and other entities. These accounts cater to the financial needs of a group rather than an individual and provide benefits higher than individual current accounts.  

Purpose and Usage

Individual current accounts are primarily used for small-scale corporate transactions with restrictions on transaction volume, unlike non-individual current accounts. They are designed to simply serve the day-to-day banking needs of individuals running a small business.

Non-individual current accounts are used for big-scale business purposes to meet frequent and high-value transactions. They are crucial for managing business finances, vendor payments, payroll, and other commercial activities. Businesses depend on these accounts for their operational efficiency.  

Account Benefits and Features

Individual current accounts offer basic features such as debit cards, cheque books, and internet banking designed for basic corporate financial management. These bank accounts have limited features than their non-individual counterparts.

Non-individual current accounts offer advanced features like higher transaction limits, multiple-user access, overdraft options, and specialised services designed for business operations. These features are tailored to meet complicated business needs.  

Documentation and Requirements

An individual current account requires basic KYC documents such as identity and address proof. The process is relatively quick and straightforward.

A non-individual current account requires more comprehensive documentation, including business registration certificates, the entity’s PAN card, and other regulatory documents. The documentation process is more detailed to meet the regulatory and legal needs of business entities.  

Significance of Premium Accounts

Individual current accounts generally receive fewer options for premium services. They are simply designed to provide slightly better banking features for business needs than regular savings accounts.

Non-individual current accounts offer a wider range of services and higher transaction limits designed for business needs. For instance, a premier account like the Indus Select Current Account by IndusInd Bank offers a range of benefits designed to add value to business activities and operations. Let’s take a look at the perks:

Also Read: 5 Benefits of Current Accounts for Businesses

Ending Note

While individual current accounts are suitable for managing individual corporate finances with basic banking needs, non-individual current accounts cater to the complicated and high-volume transactional requirements of big organisations and businesses. Note that if you have a small business, you may consider opting for an individual current account.

Those looking for an account to maintain their big-scale business transactions must consider opening a non-individual current account. One such current account is the Indus Select Current Account. This current account can enhance your business’s financial management by offering holistic benefits and value-added services.

So, if you are looking to streamline your business activities and benefit from premium banking features, open a current account online with IndusInd Bank today.

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Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.