All You Need to Know about Current Accounts

Posted on Monday, February 12th, 2024 | By IndusInd Bank

What is a current account for you? Ask this, and you will hear different stories. For a business owner, it’s a lifeline for daily transactions. A budding entrepreneur might see it as a distant concept linked to future ambitions. Even a freelancer may see it as a way to handle numerous payments. Each perspective highlights the diverse roles a current account plays for different people.  

Thus, current accounts are more than just a banking tool. They shape how you manage money in your personal and professional life. Given their importance, let’s uncover the layers of a current account, understanding its features, types, and importance in financial dealings. 

What is a current account exactly? 

A current account is a type of bank account that businesses and individuals use mainly for non-personal transactions. This account caters to those who carry out a high number of banking transactions every day, such as traders, firms, public enterprises, and businessmen. Unlike savings accounts, current accounts don’t earn interest, focusing instead on offering flexible, frequent transaction capabilities important for business and trade activities. 

Types of current accounts 

Now that you have understood the meaning of a current account and its purpose, let’s delve into its types. IndusInd Bank offers four types of online current accounts with a range of benefits for your business. These include: 

1. Indus Tarakki Current Account: Exclusively designed for retailers, traders, and merchants, the Indus Tarakki Current Account streamlines digital collections with advanced merchant solutions such as POS, QR codes, Payment Gateways, and UPI. This account enhances transaction efficiency and customer engagement. 

2. Indus Freedom Current Account: Best suited for individuals and sole proprietorships, Indus Freedom is a complete package of comprehensive banking services. It comes with exclusive advantages on payments, collections, and cash transactions. This current account supports the unique requirements and growth ambitions of enterprises. 

3. Indus Premier Current Account: The Indus Premier Current Account adjusts to your business’s changing needs with flexible limits. It comes with features such as dynamic cash deposit limits, higher transaction limits, auto sweep deposit and grouping of accounts, which are particularly beneficial for businesses aiming for scalable and efficient banking. 

4. Indus Select Current Account: Designed for growing domestic and international businesses, the Indus Select Current Account offers a suite of services to help businesses create more value. You get access to curated lifestyle privileges, offers, and additional benefits that go beyond traditional banking services. 

Choose the one that fits you the best and enjoy the exclusive benefits these accounts offer. 

Features and benefits of current accounts: 

The many benefits and features that make current accounts a valuable tool are: 

1. Higher number of transactions allowed: One key feature of a business account is the ability to carry out a large volume of transactions. This benefit makes it ideal for businesses with frequent banking needs. 

2. Direct payment services: Current accounts provide the facility for direct payments through cheques, demand drafts, pay orders, etc. It simplifies the process of making regular payments. 

3. Digital banking: Current accounts also embrace digital banking by offering Internet banking as well as mobile app facilities. This helps you complete banking tasks online anytime, from any location. Plus, you get real-time notifications and alerts for transactions, which is a convenient time-saving feature. 

4. Overdraft facility: A business account usually offers an overdraft facility. This allows you to withdraw money even if the account balance is zero. It acts as a short-term loan and can be very useful in managing cash flow for a business. 

5. Interest feature: Usually, there is no such thing as a current account interest rate. However, with most IndusInd Bank Current Accounts, you get the opportunity to earn interest on any surplus funds. Through the auto sweep deposit feature, any amount surpassing a predetermined limit is automatically transferred to a fixed deposit. Suppose your account has a threshold of ₹1 lakh. When your balance reaches ₹1.3 lakhs, the excess ₹30,000 is moved into a fixed deposit.  

Auto sweep feature lets your finances always work for you. Instead of sitting idle, your surplus funds actively earn FD-like interest. 

IndusInd Bank Current Account: Your trustworthy banking partner  

Now that you know about current account benefits, features, and importance, it’s time to choose the right bank. With its exclusive range of current account solutions, IndusInd Bank can be an ideal banking partner for your business. 

Enjoy features like high transaction limits, online and mobile banking access, instant fund transfers, and more. The best part? You can even customise your account number, using the My Account My Number (MAMN) feature. 

Apply for an IndusInd Bank Current Account now! Take control of your finances with an online current account that adapts to your needs. 

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.