A Look Into Current Accounts


A present account is among the various kinds of accounts provided by a financial institution. Even though it pays minimal (if) interest towards the account holder around the balance maintained, a financial institution current account provides the versatility to create limitless withdrawals and deposits per day, every single day. Therefore, it is well suited for businessmen, firms, companies, private entities, and people who are involved with numerous transactions every day. This account is majorly operated through cheques, even though some customers might also prefer to utilize a debit/charge card to handle transactions nowadays.

A company current account is neither designed to earn interest nor to inspire any savings. It’s purely employed for the benefit it provides running a business transactions. The first deposit/minimum balance dependence on a present account in a bank is very high when compared with a checking account. One major benefit of opening this account having a bank may be the overdraft facility which helps to ensure that nothing hampers a person’s everyday transactions even when there’s a shortfall of money within the account. The overdraft facility creates a mutual knowning that despite the fact that a free account holder might possibly not have profit his account during the time of withdrawal, his business helps to ensure that in the day’s finish, the earnings it produces will remove the overdraft.

A present account can also be very helpful to create regular payments at regular times of your time (wages, rentals, etc.) with no hassles. A free account holder has got the liberty to issue standing instructions towards the bank to make sure that timely debts are paid straight to the receiving party’s account. In which the payment amounts aren’t fixed, the account holder might also pick the direct debit option where he instructs the financial institution to pay for the intended person exactly that once.

As no banks that provide a present account facility can lure customers with “competitive rates of interest” because they do inside a checking account, it is almost always the help offered about this accounts which are highlighted within their promotions. There being no free lunches – particularly in banks – useful more frequently billed, these days.

The bottom line is, the benefits and drawbacks of the current account are:


• Fast access to cash

• Electronic/online payment and account management option

• Overdraft facility

• Standing instructions & direct debit

• Simpler transactions during foreign travels


• Low/nil rates of interest

• Moderate to high service charges

• A restriction might be enforced on the quantity of funds it’s possible to withdraw per day.

• Greater balance requirement

Opening a financial institution current account usually necessitates the same group of documents you might be needed to create while opening saving account having a bank – some photographs, address proof, an individual who can attest to the possibility account holder, along with a PAN card. The documents may rise in different cases, based on who’s opening the account – individuals, clubs, proprietorship concerns, private limited companies, clubs, groups, complete families, etc.