How does the Current Account work? A current account is a banking account that lets you deposit and withdraw funds. Many banks provide a variety of current accounts with various features so you can choose the one that best suits your requirements.
There are no limits on deposits, withdrawals, and number of transactions if you have a current account. However, it has a high minimum account balance requisite.
If you want to open a Current Account, you should go through the eligibility criteria to open a Current Account as given below.
Advantages of Current Account
- It handles the various payments that prove to be convenient for account holders.
- There are no limits on the number of cheques issued by businesses/entities/or account holders.
- There is no limit posed on transactions through internet banking.
- There are no fees or charges on deposits made into the current account at the home branch of the bank.
- There are no restrictions on withdrawals. However, cash transactions are applied.
- The account holders get access to an overdraft facility at a certain limit.
- Availability of pay order and demand draft facilities permits the direct payments to creditors.
- Current accounts are also regulated by KYC rules the same way as a savings account.
Qualifications for current account
You are eligible for an online current account opening if you fall under any of the below categories.
- Sole proprietorship firms
- Partnership firms
- Resident individual
- Hindu undivided family
- Public and private limited companies
- Limited liability partnership firms
Tips to keep in mind while opening the Current Account
There are some tips that you need to follow while opening your Current Account.
- You should read the schedule of charges and understand the guidelines for monthly average balance maintenance and initial funding.
- It is suggested to compare the different options in the Current Account provided by the bank and choose the best one that meets your needs.
- Ensure to keep the operational costs in your mind while choosing the type of Current Account.
- You should check all the documentation needed for the type of Current Account because the other kind of Current Account needs fewer documents.
How many types of Current Accounts are available?
There are many types of Current Accounts available to open online or at any bank.
- Packaged Current Account
- Standard Current Account
- Single-column cash book
- Premium Current Accounts
- Foreign currency Current Account
Inconvenience linked with Current Account
Along with the advantages, some factors create an inconvenient experience for account holders.
- Paperwork makes a confusing and daunting task.
- Cash withdrawals are applied on certain fees that vary from one bank to another.
- High values transactions attract greater fees.
- Operational costs are too high in the case of Current Accounts that offer perks at extra fees.
- All banks do not give interest benefits on deposits.
Conclusion
Here is the complete information on eligibility, advantages, and types of the Current Account. Whether you are going to open a Current Account or are already an account holder, you should gather all the above information.
