What are Current Accounts? A current account, also known as a financial account. A type of deposit account that regularly maintained large-value transactions.
The current account is a country’s trade balance and net income and direct payments. Current accounts are related to liquid deposits and unlike savings accounts, it does not provide interest.
Current accounts are mainly opened by businessmen such as proprietors, partnership firms, trusts, associations of individuals, public and private companies, etc. How to Transfer Money From One Bank to Another.
However, It allows customers to deposit and withdraw funds at any time without notice. An account is ideal for paying creditors using checks.
The main objective of the current bank account is to enable the accounts of the businessmen to run the financial business transactions smoothly.
Different Types Of Current Account?
Banks provide different types of current accounts keeping in mind the different banking needs of their customers.
1. Standard Current Accounts
This type of account requires the customer to maintain a minimum monthly average balance.
The account does not pay any interest on the deposit amount. However, it provides checkbook facilities, debit cards, overdraft facilities, etc. to its customers.
2. Basic Current Accounts
It is ideal for low-paid income such as pensioners, young people, etc.
In addition, It helps customers to manage their finances rather easily. However, there are some restrictions on the daily cash withdrawal limit.
3. Premium Current Accounts
It is a type of account that comes with special offers and benefits for customers. This account is best suited for large-value transactions.
4. Packaged Current Accounts
This current account type provides a lot of perks and benefits to the account holders. It comes with exclusive features like medical support, travel insurance, and more.
5. Foreign Currency Accounts
Foreign currency accounts are provided to NRIs or individuals who wish to transact frequently in foreign currencies.
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Benefits of Current Accounts
- Unlimited Transactions
- NO limits Withdrawals and Deposits
- No limit on deposits in the home branch
- Provides Overdraft facilities to the customers
- Facilities frequent transactions like fund Transfers
- Best suited for business purpose
- Provides internet banking and mobile banking facilities
- There no restrictions on the number of transactions carried out in a single day
- Similar to a savings account, KYC guidelines need to follow in the case of current accounts too
How To Open Current Accounts?
- Visit the official bank’s website in which the customer likes to open an account.
- After that, Go to the online Current Account opening form.
- Fill in all the required details in the ‘Personal Details’ & ‘Account Details’ section.
- After that, Download the filled Current Account opening online form and take a print out.
- Go to the nearest bank branch with the filled-in form and the necessary KYC acceptable documents for opening a current account.
Documents Required for Opening Current Account?
- ID Proof (PAN Card, Passport, Driving License, Voter ID Card, Aadhaar Card)
- Certificate of Incorporation, MOA & AOA (in case of Companies)
- Certificate by Sales Tax or Service Tax authorities (in case of Proprietorship Firm)
- Address Proof of the Firm / Company / HUF
- ID Proof and Address Proof of all directors/partners
- A cheque for opening a bank account
- Photograph
Frequently Asked Questions (FAQs)
Q. Who is eligible to open a Current Account?
Ans: A current account can be opened by individuals, private and limited companies, partnership firms, HUFs, trusts, etc.
Q. What is the difference between current and savings accounts?
Ans: While a savings account is one in which you deposit your savings in a bank and earn interest on it, a current account is one where you deposit money to conduct business transactions.
Q. Is the GST number mandatory for opening a current account?
Ans: No, there is no specific requirement of GST registration for having a Current Account.
Q. Can I convert my savings account to my current account?
Ans: It is not possible to convert your savings account into a current account as the two accounts are different in nature and have different features and benefits as well. Whereas a savings account is for personal use and thus can be opened with basic documents for KYC.
Q. How much money we can keep in a saving account?
Ans: Although there is no limit to how much you can keep in a savings account, you should know the rules for large deposits in savings accounts. When it comes to depositing in a bank account, Rs. 10,000 is the magic number.
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