Why Current Account for Freelancers is a must?

Posted on Tuesday, April 25th, 2023 | By Indusind Bank

As a freelancer, managing your finances is crucial to ensure smooth business operations and personal financial well-being. One key decision you need to make is choosing the right type of bank account for your business transactions. Among the options available, a current account is often considered by freelancers due to its specific features and benefits. However, as with any financial decision, it’s important to carefully weigh the advantages and disadvantages. In this blog, we will discuss the pros and cons of current accounts for freelancers, helping you make an informed decision. 

Pros of a Current Account for Freelancers 

1. Separation of Business and Personal Finances: Having a separate current account for your freelancing business can help you maintain a clear separation between your business and personal finances. This makes it easier to track business income and expenses, simplifies accounting and tax filing, and provides a professional image to your clients. 

2. Efficient Cash Flow Management: With a current account, you can efficiently manage your business cash flow. You can easily receive payments from clients, make business payments, and transfer funds between your business and personal accounts, helping you streamline your financial transactions and monitor your cash flow effectively. 

3. Overdraft Facility: Many current accounts come with an overdraft facility, which can be beneficial for freelancers who may face irregular income or unexpected expenses. An overdraft facility allows you to withdraw more money than you have in your account, up to a pre-approved limit, which can help you manage cash flow fluctuations. 

4. Multiple Payment Options: Current accounts often provide various payment options, such as chequebooks, demand drafts, online banking, and mobile banking, which can make it convenient for you to receive payments from clients and make business payments. 

5. Access to Business Loans and Credit: Having a current account in your business name can also make you eligible for business loans and credit from banks and financial institutions. This can provide you with additional financing options to grow your freelancing business and manage expenses. 

Cons of a Current Accounts for Freelancers

1. Higher Fees and Charges: Current accounts may have higher fees and charges compared to other types of bank accounts, such as savings accounts. These fees can include monthly maintenance charges, transaction fees, and overdraft charges, which can eat into your earnings. 

2. Minimum Balance Requirements: Current accounts may have minimum balance requirements that you need to maintain, failing which you may be charged penalties. This can be challenging for freelancers who may have irregular income or face fluctuations in their cash flow.  
   However, IndusInd Bank current accounts has a nominal minimum balance requirement for its current accounts, making it accessible and affordable for freelancers and small businesses. This means that you can open and maintain an IndusInd Bank current account without having to maintain a high balance, which can be a significant advantage for businesses with fluctuating cash flows or limited funds. 

3. Complex Documentation: Opening a current account may require more documentation compared to other types of bank accounts. You may need to provide business registration documents, PAN card, Aadhaar card, and other identification and address proof, which can be time-consuming and cumbersome. 

Thankfully, IndusInd Bank offers the convenience of instant account opening without the need for lengthy paperwork. You can even opt for video KYC – which is as simple as a video call. This eliminates the need for physical documentation and saves you time and effort, making it a hassle-free process to open a current account with IndusInd Bank. 

That’s not all! With IndusInd Bank Current Account, you can also: 

• Pick an account number of your choice 
• Enjoy premium doorstep banking like cash/cheque pick and drop 
• Get 24X7 access to your account details via mobile & internet banking 

In conclusion, IndusInd Bank’s current account offerings provide several advantages for freelancers and small businesses, including transparent fee structure, nominal minimum balance requirement, instant account opening through Video KYC, range of banking services and features, digital banking solutions, and value-added services. These advantages make IndusInd Bank an attractive choice for freelancers and small businesses looking for efficient and convenient banking solutions for their business operations. 

Open 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.