A current account is a type of financial account that is opened by businesses to handle a large volume of transactions regularly. This current account is set up by a bank on individual request or used for immediate access.
Current accounts ensure the fluidity of liquid deposits and provide a range of customizable options. Keep in your mind that the current account needs to maintain a higher minimum monthly balance as compared to a savings account. Despite this, there is a list of benefits that come with a current account.
But before opening a current account, you should meet all the requirements that we tell you in this article.
Necessary documents for current account
To open a current account, people need to submit their documents to KYC. Here is the list of documents that meet your requirements to open your current account: –
- Address proof
- PAN card
- A color photograph of an interested applicant
- Residence and ID proof
- Cheque from your existing account
- Companies must give the address of the communication.
- A memorandum of association or incorporation certificate should be submitted by firms.
Key features of the current account
The best thing about a current account is that it allows you to make day-to-day operations and regular transactions. Banks provide many exclusive features on your current account to meet the need of your dynamic business.
- There is great transaction scope for a current digital account than for a savings account.
- With a current account, an individual need to maintain a higher minimum account balance to stay away from penalties.
- It is the best bank account for those who want to handle a large volume of deposits, withdrawals, and transactions.
- A single business is only able to have one current account.
- Most banks do not pay interest on the deposit that you make with your current account, but there are some exceptions.
Types of current account
There are different types of current accounts available to meet the different needs of the business.
- Standard current account
The standard current account is the basic type of current account that levied no interest rate on deposits and need to maintain the monthly balance in the current account. It provides standard services to account holders, like debit cards, chequebooks, free RTGS, NEFT transactions, etc.
- Foreign current account
Foreign current accounts are best fit for businesses or individuals that need to carry the frequent transactions in foreign currencies.
- Packaged current account
The packaged current account provides many perks to customers, such as access to additional services like roadside assistance, medical support, travel insurance, overdraft facility, etc.
- Premium current account
Premium current accounts provide exclusive features to account holders. It provides many customized features to the account holder and allows them to carry a large volume of transactions.
Conclusion
According to your type, size, and need of business, you can choose any of one current account and meet your needs. All the current accounts ensure to provide you with a hassle-free experience while performing business operations.