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Do banks pay interest on a Current Account?
Posted on Saturday, December 31st, 2022 | By IndusInd Bank
Whether you are looking to save money or carry high volume transactions, banks offer a wide variety of accounts based on your requirements. These include savings accounts, salary accounts, current accounts, NRI accounts, etc. that you can access anytime, from anywhere with facilities like mobile and internet banking. You can transfer funds online, pay bills, track spending, earn interest and do much more with these accounts. In this article, we will talk about current account and the interest income earned by the account holder on these accounts.
A current account caters to businesses/individuals who carry a significantly higher number of transactions with banks. A current account mostly deals with liquid deposits and offers several customized options for instant and seamless financial dealings. Unlike a savings account – which is meant for saving money, a current account has no limits on daily transactions and cash deposits/withdrawals. However, they do require a higher minimum account balance.
Now that you know the fundamentals of a current account, let’s know more about the interest earnings of current account. Banks offer a wide range of investment products that offer a certain amount of interest on the funds you park in them. This amount falls in your interest earnings. But don’t get confused, not all banking products offer interest earnings.
Will I get interest on my current account balance?
No, banks do not pay any interests to current account holders. Why? Because current accounts are heavily operated accounts which are mainly held by businesses, merchants and enterprises for large and frequent transactions. Due to this, banks incur a huge operational cost for current accounts.
However, savings account holders enjoy interest income on their parked funds. This interest amount is generally credited quarterly, or on a half-yearly basis. With IndusInd Bank, you can open a savings account with attractive interest rates on your deposits instantly!
So why should one open a current account?
A current account has multiple advantages for merchants, businesses, enterprises, associations, societies and trusts.
The liquidity of funds and the flexible limits make current account an irreplaceable banking product for businesses. IndusInd Bank current account offers: –
- Instant account opening with minimum paperwork.
- Industry specific accounts (like Agro, IT, Telecom, BPO, Manufacturing) for unique banking needs.
- An account number of your choice (My Account, My Number).
- Account grouping for related entities (with common authorized signatories) and family-owned current accounts.
- Pre-approved loans with quick disbursal for immediate capital requirements.
- Doorstep banking services like cheque pickups, cash pickups and much more!
Apart from all this, IndusInd Bank current accounts come with secure NEFT/RTGS/IMPS transactions, instant SMS alerts, simple mobile banking & smooth internet banking interface for a seamless digital banking experience. Select the right banking partner for your business, open a current account with IndusInd Bank now!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own 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 taking any financial decisions based on the contents and information.
