How many types of current accounts are there in banks?

Posted on Friday, March 3rd, 2023 | By IndusInd Bank

A current account is a type of bank account that is primarily used for business purposes. It is designed to facilitate frequent transactions and payments, and it allows you to make and receive payments using a variety of payment methods, including cheques, debit cards, and electronic transfers. Unlike a savings account, which is designed for long-term savings, a current account is used for day-to-day transactions, such as paying bills, making purchases, and receiving payments. A current account typically comes with a cheque book and online banking facility, allowing you to manage the finances easily and efficiently.

Businesses should have a current account for several reasons, including:

1. Convenient Payment Management: A current account allows businesses to manage their payments conveniently. With a current account, you can send and receive high-value payments frequently.

2. Overdraft Facilities: Current accounts come with overdraft facilities, which allow your business to borrow money when they need it. Overdrafts are extremely useful when faced with unforeseen cash flow issues or unexpected expenses. The overdraft facility can help bridge the gap between payments received and payments due, enabling you to manage their finances more effectively.

3. Cash Management: You can keep your cash safe in a current account, making it easy to monitor and control your cash flow. You can view your account balance and transaction history anytime to manage your finances proactively.

4. Creditworthiness: Having a current account can help you build creditworthiness. Banks use current accounts to assess the creditworthiness of a business. A good credit score is essential for businesses that want to borrow money or apply for credit in the future.

5. Professional Image: Having a current account can help your business project a professional image. A current account shows that your business is serious about its finances and is committed to managing its finances responsibly. It also demonstrates that the business is established and has a stable financial position.

Types of current accounts

There are different types of current accounts available in banks, and each one has its unique features and benefits. Choosing the right type of current account depends on your business needs and requirements. It is essential to research and compare different current account options before choosing the one that is best suited for your business. To help you with the same, here is a broad breakdown of types of current accounts.

Standard Current Account: This is the most common type of current account offered by banks. It is a basic account that allows the account holder to make and receive payments. The account usually comes with a cheque book and internet banking facilities.

Premium Current Account: A premium current account is a type of current account that offers additional benefits and features to the account holder. These benefits may include higher withdrawal limits, free cheque books, priority customer service, and lower transaction fees.

Packaged Current Account: A packaged current account is a type of current account that comes bundled with other financial products and services. These products may include insurance policies, credit cards, and travel discounts. The account holder usually pays a monthly fee for the packaged account, which covers the cost of the additional products and services.

Foreign Currency Current Account: A foreign currency current account is a type of current account that allows the account holder to hold and transact in foreign currencies. This type of account is useful for businesses that operate in multiple countries and need to make and receive payments in different currencies. The account usually comes with a higher minimum balance requirement and transaction fees.

Cash Management Current Account: A cash management current account is a type of current account that is designed for businesses that have a high volume of transactions. This type of account comes with advanced cash management tools, including automated payments, collections, and account reconciliation. The account may also offer real-time reporting and analytics.

Types of current account in IndusInd Bank

IndusInd Bank offers a wide range of current accounts to suit the needs of different types of businesses. From basic current accounts to premium current accounts with a range of value-added services, there is an account for every business.

IndusInd Bank takes extreme pride in offering various industry-specific current accounts. Industry-specific current accounts are a type of current account that is designed to meet the unique needs of businesses operating in specific industries. These accounts offer a range of features and benefits that are tailored to the requirements of businesses in a particular industry, such as healthcare, hospitality, or retail. With us, you can choose from Indus Grain Merchant Flexi Current Account, Indus Textile Current Account, Indus Infotech Current Account, Indus Escrow Current Account and lots more!

That’s not all. You can even open a current account from the comfort of your own home or office, without the need to visit a bank branch using Video KYC. This saves time & effort, and makes the account opening process more convenient. Video KYC can be completed quickly, often within a matter of minutes!

With our easy account opening process and personalized solutions, IndusInd Bank Current Accounts are a great option for businesses looking for a current account that meets their specific needs. If you too are looking for the same, click here!

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.