Current Account or financial account is a type of deposit account availed by individuals who carry out high volume of transactions with the bank on a regular basis.
This account is set up by the bank on the request of the individual and is made available for frequent or immediate access. Current accounts relate to liquid deposits and it offers a broad range of customized options to aid financial dealings. Generally, current accounts require a higher minimum account balance to be maintained when compared to a savings account and they do not provide returns on the deposits made.
However, the greatest advantage of a current bank account is that account holders can easily avail overdraft facility up to an agreed limit decided by the bank.
Documents Required to Open a Current Account
Make sure that the documents you submit for KYC are valid.
Following is a list of documents required to open a current account:
Features of a Current Bank Account
One of the basic requirement for starting a business is having a current account for day to day operations and transactions.
Banks have recognized this basic need and offer a number of attractive offers and benefits on current accounts to match the dynamic needs of these businesses.
Here are some of the basic features of a current account:
Different Ways of Depositing Cash in Current Account
You can deposit cash in your current account using any of the following methods:
Types of Current Account
Banks offer varied types of current accounts to its customers to suit their needs.
Here are some of the common types of current accounts offered by various banks in India:
Foreign currency accounts
Foreign Currency Accounts are for those individuals or businesses that require frequent transactions to be carried out in foreign currencies.
Standard Current Accounts
It’s an account that provides with no interest rate on the deposits and requires the customer to maintain a monthly average. It provides its customers with chequebooks, debit cards, overdraft facility, etc. Other features may include internet banking, SMS banking, Free RTGS and NEFT transactions, etc.
Packaged current accounts
These account offers a lot of perks to its customer as the account comes with additional features such as travel insurance, medical support, roadside assistance, etc.
Premium current accounts
It comes with exclusive offers for its account holders. The account provides many customized features and is generally suited for those who carry out high financial transactions.
Banking with Current Accounts
You can access your current account for daily cash transactions by using any of the following methods:
An account holder can perform a variety of banking activity such as viewing bank statements, cash transfers and so much more!
It is one of the most preferred modes of banking among the account holders as you can transact even during non-banking hours. It allows the account holder to seamlessly transact with just a click of a button. However, online transfers beyond a set limit will require a cheque to carry the transaction out.
Charges may be applicable on withdrawals or deposits after a certain limit even at the bank branch. A customer can avail for a variety of banking needs at the parent branch.
Banks allows its customers to perform a host of activities over a call. You can review your bank statements, check your balance or make payments through phone banking.
A traditional way of withdrawing cash from a current account, cheques are still preferred over online transactions as online transfers have a certain limit.
ATMs machines let you withdraw cash from your account without the hassle of visiting a branch. While ATMs allow you to withdraw cash even after the normal banking hours, the limit on the withdrawals is low.
Overview of Banks offering Current Accounts in India
State Bank of India
SBI offers different types of bank accounts to its customers depending upon the nature of the business.
The list is as follows:
ICICI Bank has launched a series of tailor-made current account products to meet the regular transaction requirements of businesses. These products are most suitable for traders, small businesses, and self-employed professionals with an annual turnover below Rs.2 crores.
The list is as follows:
HDFC Bank Current Account
HDFC Bank offers different types of bank accounts to its customers depending upon the nature of the business.
Given below are some of the popular current accounts offered by HDFC bank.
Kotak Mahindra Bank
Kotak Mahindra Bank offers its customers with carefully curated products created to satisfy the customer’s needs.
The types of current account offerings are as follows:
Axis Bank Current Account
Axis Bank current account come with a multitude of features and benefits. Following are the current account products offered by Axis Bank:
Punjab National Bank
Punjab National Bank (also known as PNB) is among the oldest banks in the country and offers 2 types of current accounts.
IndusInd Bank Current Account
The current account of IndusInd Bank is designed to meet the requirements of regular businesses, corporate firms, importers, and exporters.
The list of current accounts is as follows:
DBS Business Accounts offer a comprehensive range of services designed to help its customers run their business smoothly.
The types of current accounts offered are as follows:
Yes Bank Current Account
Yes Bank offers three types of current account products for small-scale businesses.
Given below are the types of current accounts offered by Yes Bank:
Bank of Baroda
Bank of Baroda offers various types of current accounts to suit different customer needs. The list is as follows: