Current Account

Businesses prefer using a current account for ease of access and transactions. Current accounts are mainly used by business entities like proprietors, business firms, and private and public companies which allows them to operate business smoothly. 

What is a current account?

A current bank account is a type of customized account that business entities use on a regular basis to access their accounts frequently and conduct daily transactions.

Current accounts deal with liquid deposits and offer a wide array of customized options to facilitate financial dealings like withdrawals, deposits, payment through cheque, online banking, electronic transfer, overdraft facility, etc.

Current account vs savings account:

Unlike the savings bank account, these accounts do not provide interest and require a higher minimum balance to be maintained. This gives the users a professional edge. The current accounts can be opened in banks and co-operatives to suit the requirements of regular businesses. 

Benefits of using current bank accounts:

  • Helps you can out an array of operations like electronic transfer, cheque facility, and online banking facility. 
  • You can borrow money up to an agreed limit known as an overdraft facility. However, you have to maintain a minimum balance. 
  • You can make any number of transactions a day if the minimum balance is maintained. 
  • Current accounts can be opened in co-operatives banks as well as commercial banks and small finance banks.

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