The Different Types of Current Accounts: Which One Should you Choose?

Posted on Friday, August 11th, 2023 | By IndusInd Bank

When managing your business finances, having the correct type of online current account is crucial. A current account allows multiple transactions in a day, allowing you to manage your funds efficiently.

Every business has different demands, and with the immense number of options available, selecting the right current account can be challenging for you.

Let us talk about the different types of current accounts and how you can choose the one that is ideal for your business.

What is a current account?

A current account is a type of bank account primarily used for business purposes. You can use it for daily financial transactions, such as deposits, withdrawals, payments and transfers.

A current account also facilitates payments to creditors through a cheque facility offered by the bank. Additionally, you get an overdraft facility with a specific limit.

Types of current accounts

Different banks and financial institutions provide different types of current accounts considering the distinct banking needs of the customers. You should select the type of current account based on your business needs.

Here are the different types of current accounts provided by most banks:

Standard current account

This is a basic current account offered by banks. It has a preset minimum balance requirement and a monthly average balance requirement.

Its features include the following –

• Overdraft facility
• Free inward remittances
• Limitless withdrawal

Premium current account

As the name suggests, a premium current account provides a variety of customised and exclusive services to you. This current account is ideal for large businesses with a large volume of transactions.

A premium current account offers customised features for efficient banking. These include –

• Dedicated Relationship Manager
• More cheque leaves
• Free demand draft (up to a limit)
• Doorstep banking services
• Higher cashback

Foreign currency current account

This type of current account is ideal for businesses dealing in foreign currencies. IndusInd Bank offers three kinds of special foreign currency current accounts –

• Special foreign currency accounts for residents
• Special foreign currency account for overseas tour operators
• Resident foreign currency (domestic)

Click here to learn more about Special Foreign Currency Current Accounts in detail.

Choosing the right current account

The main aim of opening a current account is to conduct all business transactions smoothly and allow you to manage bulk transactions easily.

Below are a few factors to consider when selecting the ideal current account for your business.

Minimum balance requirements

A minimum balance must be maintained in your account to prevent the current account from getting deactivated. Typically, the minimum balance value is comparatively higher for current accounts than for savings accounts. The minimum balance requirement may vary across different banks.

Fees, charges and overdraft costs

The fees may vary from one type of current account to another. You must make note of some essential factors, such as cash withdrawal charges, demand draft charges, fund transfer charges, overdraft costs, and more.

Cash deposit limit

Different banks may have different deposit limits for current accounts. You must pick a current account based on the size of your business.

For example, if you are a business owner or a self-employed professional dealing in a high number of cash transactions, it is essential to select a current account with a cash deposit limit that suits your requirements.

Benefits of opening a current account

1. Overdraft facility

A business has to meet daily expenses. At times, small businesses may face cash-flow issues if they have bills to pay but haven’t received payments.

Even if your current account balance hits zero, you can use the overdraft facility offered by your bank. It allows you to get funds as a loan for a short period to meet your working capital requirements.

Depending upon your transaction history and relationship with the bank, you may or may not be charged interest on the overdraft facility.

2. No limits on transactions

The number of transactions increases as the business grows. With a current account, you are not limited to a set number of transactions and are allowed to transfer large amounts.

3. Better management of cash flow

Having your finances organised is crucial for your business. A current account statement shows you a clean record of your transactions for analysis and gives you a clear picture of your debits and credits.

This is essential to establish credibility with lenders and avail of credit in times of need.

4. Unlimited cheque leaves

You may have faced situations where you run out of cheques for your savings account. As the number of cheque leaves is limited, you can’t write out cheques too often.

With a current account, you get a higher number of cheque leaves every month. This facility can be availed of for free.

5. Building a financial history

A current account allows you to build a positive financial history, which is important for the future financing needs of the business. When you apply for a loan, banks and financial institutions check your banking behaviour. This includes how you handle your current account.

Thus, having a current account improves your chances of getting loans in the future.

IndusInd Bank Current Account: ideal banking partner for your business

When it comes to managing your business finances, having a reliable and efficient banking partner is crucial. IndusInd Bank understands the unique needs of businesses and offers a comprehensive range of current account solutions designed to cater to those needs.

You can experience a seamless banking experience that empowers you to focus on what truly matters – growing your business. Whether you are a startup, SME or large enterprise, IndusInd Bank provides tailored current account offerings that combine convenience, flexibility and advanced banking features.

With features like high transaction limits, instant fund transfers, online and mobile banking access, and a dedicated Relationship Manager, you can streamline your financial operations and stay ahead in today’s competitive business landscape.

You even have the option to pick your account number, using the My Account My Number (MAMN) feature.

Click here to learn about the different types of IndusInd Bank Current Accounts available for your business.

Conclusion

Understanding various types of current accounts and their features is vital for you to make better decisions for your business. As a business owner, you must know your financial goals, transaction patterns and banking preferences. You should consider factors such as minimum balance requirements, transaction limits, interest rates and services offered to select an ideal option.

You can open a current account online with IndusInd Bank. The process is convenient and 100% digital. You can even get the KYC process done through video KYC, regardless of your location.

Apply for an IndusInd Bank Current Account 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.