All about Current Accounts—Types, Features, Eligibility, and more

Posted on Thursday, November 10th, 2022 | By IndusInd Bank

Wondering how a Current Account works? How is it different from a Savings Account? What are the benefits of a Current Account? Well, you are at the right place. Just sit tight and read through the article to know all about it in detail. 

Unlike a Savings Account that is meant for saving money, a Current Account caters to public enterprises or businessmen who have a significantly higher number of transactions with banks. A Current Account is mostly used to deal with liquid deposits and offers several customized options available that aid in smooth financial dealing. In a Current Account, there are no limits on daily transactions and cash deposits/withdrawals. Moreover, in contrast to a Savings Account, Current Accounts require a higher minimum account balance. 

Interesting, right? Let’s dive a little deeper to know what makes Current Accounts the preferred choice for businesses. 

Features & Benefits of a Current Account 

• Handling a large volume of payments systematically proves to be extremely convenient with a Current Account. 
• There is no limit on the number of cheques issued by the account holder/business/entity. 
• There are no restrictions on the number of transactions via internet banking. 
• There are no charges/fee on the deposits made into the Current Account at bank’s home branch. 
• There is no limit on the number of withdrawals, however, a cash transaction fee is levied. 
• Current Account holders have easy access to overdraft facility up to a certain limit. 
• Free inward remittances, deposits and withdrawals at any location, multi-location transfer, etc. help in seamless business dealing. 
• Availability of demand-drafts and pay-order facilities allows direct payments to creditors. 
• The small interest-earning option now offered by several banks makes Current Account a win-win proposition for businesses. 
• Just like in a Savings Account, Current Accounts are also regulated by KYC guidelines. 

Excited to open your Current Account? Let’s know about the eligibility criteria. 

Eligibility Criteria to Open a Bank Current Account 

You are eligible to open a Current Account if you fall under one of the following categories. 

• Resident Individual 
• Hindu Undivided Family 
• Sole Proprietorship Firms 
• Partnership Firms 
• Limited Liability Partnership Firms 
• Private and Public Limited Companies 

Eligibility check, done! Now, let’s find out what type of Current Account would work best for you. 

Types of Current Account 

• Standard Current Account: This is a basic Current Account with pre-set minimum balance and monthly average balance requirements. Standard Current Accounts do not offer interest benefit and comes with all the key features like an overdraft facility, free inward remittances, limitless withdrawals, and more. 
• Packaged Current Account: This type of Current Account comes with added benefits over and above the Standard Current Account. Some of the perks include medical support, travel insurance, roadside assistance, and more.
• Single-column cash book: This type of Current Account does not provide the benefit of overdraft facility. It allows daily transactions for businesses that do not maintain bank accounts and helps them to track daily transactions under separate debit and credit columns. 
• Premium Current Account: This type of Current Account is best suited for large businesses that carry out huge number of transactions of higher value. It offers customized features that aid in seamless transfer without delays. 
• Foreign Currency Current Account: This type of Current Account is best suited for businesses that deal majorly in foreign currencies. 

Made up your mind already? Wait! There are some complications associated with Current Accounts, too. 

Inconveniences linked with a Current Account 

• The paperwork involved can be quite confusing and daunting. 
• Cash withdrawals are levied upon a stipulated fee that varies with banks. 
• High value corporate transactions attract a huge fee. 
• Operational costs are too high as most Packaged Current Account provide perks at additional cost. 
• All banks do not offer the interest benefit on deposits. 

As you now know all about Current Accounts, we’d like to save you from the hassle of looking around for a bank. 

Running your business can be a breeze with an IndusInd Bank Current Account 

Enjoy benefits like: 

• Paperless digital account opening process 
• Current Account activation takes just 30 minutes 
• Pre-qualified loan available at best-in-class rates 
• Seamless financial dealing even with huge cash volume 

Choose from 9 different current account options across four categories that best suits your business & apply now: 

• Indus Business Account 
• Indus Select Business Account 
• Trade Account 
• Industry Specific Account 

Tips to be Mindful of while Opening a Current Account 

• Read the schedule of charges meticulously and keep in mind the guidelines for initial funding as well as Monthly Average Balance (MAB) maintenance. 
• Compare the types of Current Accounts offered by your bank and pick the one that best fits your business needs. 
• Make sure to bear in mind the operational costs while finalizing the type of Current Account. 
• Thoroughly check the documentation required for your chosen type of Current Account as certain types of Current Accounts may require more or fewer documents. 
• So, what are you waiting for, download the Indus Merchant solution app now Available on ios & android.  

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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.