How to Use a Current Account for International Transactions

Posted on Tuesday, January 28th, 2025 | By IndusInd Bank

If you are a business that has foreign trade on its roster, you would need a  current account to make international transactions often. This can include paying overseas suppliers, receiving money from foreign clients, or handling investments abroad. 

A current account designed for international use can make these tasks easier. A well-designed current account comes with features like smooth fund transfers, fewer delays, and affordable charges to support your global trade plans. This guide explains how to use your current account for international transactions and other related aspects.  

Using Your Current Account for International Transactions

A current account designed for international transactions provides several features that make cross-border payments easy and secure. 

Here are the different ways you can use a current account for international transactions:  

1.      Making Fund Transfers

A current account lets you make international wire transfers through systems like SWIFT or other global payment networks. This makes it easy to pay overseas suppliers, employees, or business partners securely and efficiently.  

2. Receiving Payments

With the right current account, businesses can receive payments from foreign clients quickly and without major charges. The bank converts the foreign currency to INR at competitive exchange rates so that you get the best value for your money.

3. Using Multi-Currency Features

Some current accounts may offer multi-currency features, allowing you to hold and transact in different currencies. This reduces the need for frequent conversions, lowering the money spent on international transaction charges.  

4. Opting for International Trade Services

Your bank will probably have international/foreign trade settlement services on offer. This department/ advisory board can help you get the best rates and reduce costs associated with currency conversions. 

When you open a current account with a bank, inform them about your international trade plans. This allows the bank to offer you a suitable current account that has features designed for globally aligned businesses like yours. 

In addition, also inquire about the applicable international transaction charges. Make sure you have clarity on transfer fees, forex conversion rates, and any other costs.

How to Choose the Right Bank and Current Account for International Transactions?

Selecting the right banking partner can help you reduce costs and ensure smooth overseas transactions to a great extent. 

Hence, consider the following factors to choose the best bank for overseas transactions:

1. Competitive International Transaction Charges

You should research and look for a bank that offers low transfer fees and low forex conversion rates. Before finalising, compare fees across banks to find the most cost-effective option.  

2. Global Network and Reach

To choose the best bank for overseas transactions, make sure they have a wide global network. Also, check if they are partnered up with international financial institutions like SWIFT. A strong network ensures your payments get processed faster, and you have better support during cross-border dealings. 

3. Multi-Currency Account Options

If your business deals in multiple currencies often, choose a current account that allows you to hold and transact in different currencies. This helps reduce international transaction charges and makes payments easier.

4. Digital Banking Features

In today’s digital-first world, it is important to partner with a bank that provides solid online and mobile banking services. With digital tools, you can manage your international transactions more easily. They also allow you to track payments and check forex rates in real time.  

5. Dedicated Relationship Manager

This is especially relevant if you are new to international trade. A relationship manager can offer help customised to your needs. They will guide you through regulations, advise on forex rates, and even help with documentation aspects.

6. Value-Added Services

If your bank provides additional services, such as letters of credit and export/import solutions, it can ease your international transactions even further. 

Also Read: Best Practices to Secure Your Current Account

Conclusion

When you are managing international transactions, it is of utmost importance to have the right account. Hence, you must choose a trusted banking partner that understands your global needs. The right banking account can help you transfer funds, receive payments, enjoy lower international transaction charges, and more without financial strain. Over time, this can make your foreign transactions seamless.

If you are looking for a well-designed current account, you can find a range of options to choose from with IndusInd Bank. Sole proprietors and individuals can even open a new account online in minutes. From dedicated relationship managers to dynamic cash deposit limits and auto-sweep fixed deposit options, IndusInd Bank’s current accounts have it all to ensure financial success for your business. 

Open a current account with IndusInd Bank today!

Disclaimer:The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your 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 making any financial decisions based on the contents and information.