A current account is the basic type of bank account that is used to make the easy deposit and withdrawals of money multiple times in a day. Most banks provide different types of bank accounts with different features, so there is a need to find the suitable one.
Businessmen who want to conduct daily transactions with the bank is preferred to apply for a current account. This account is used to make deposits, withdrawals, and contra transactions. This type of account is also known as a deposit demand account.
Read the post to move into the brief information about the current account online.
Features of current account
To begin the business, you require a bank account. Here are the following characteristics of the current account.
- Unlike the savings account, the current account permits transactions that are not allowed to make the savings account.
- The account holder can take the benefits from the overdraft facility with the current account.
- The minimum balance maintenance is less in the current account than in the savings account.
- Receiving cheques and transferring funds are only the frequent transactions it facilitates
- There are no restrictions on transactions to be made by the current account.
- Penalties are imposed on non-maintenance of minimum balances in the current account.
- There is not more than one current account used for a single business
- Some banks provide interest over the deposits made in the current account.
Pros of current account
Here are the benefits of using the open digital current account, whether by firms, companies, individuals, sole proprietors, etc.
- The use of current accounts makes it possible to deal with many transactions in the right manner.
- Cash transaction fees are imposed on the accounts, which permits limitless withdrawals.
- Deposits made in current accounts opened at a branch of the bank are not subject to limits.
- Direct payments are made to creditors made by using cheques, demand drafts, pay orders, etc., from the current account.
- The option of a current account is more attractive to users when it earns interest on it
- It gives the creditworthiness information of account holders through the banking connections
- Businesses also conduct important business transactions quickly, with internet banking and mobile banking facilities.
How to open the current account
- First, you should visit the bank’s official website and get the current account opening form count online.
- Then, you must fill in the account details, personal details, other sections, etc., with accurate details.
- Then you must take the print of the filled current account application form.
- Visit the branch of your bank and submit the application form and all your necessary KYC documents.
Today, banks provide different types of current accounts to meet the different needs of their clients. The different types of current accounts are best to handle many transactions every day.