A current account is a type of deposit account exclusively meant for businesses making multiple transactions daily, such as withdrawals, deposits, and transfers. It is similar to a savings account with stand-alone benefits regarding unlimited cash deposits and withdrawals, extended overdrafts, and accessible funding facilities. Although current account opening is beneficial for business transactions with high flexibility, it does not pay any interest cost to the account holder. However, the minimum balance requirement is higher than a regular savings account.
Let’s examine the five features and benefits of opening an online current account.
What is a Current Account?
A current account is a no-interest-bearing account businesses use to serve their daily financial needs. Corporations and business owners often use these accounts to manage their finances. Recent digitisation in the finance industry has increased the convenience of digital-only accounts from the comfort of their homes or offices. Moreover, they enjoy many customised features for purposes like payroll, vendor payments, etc.
Top Benefits and Features of Current Accounts
Knowing the benefits and features of current account opening is crucial, as it allows more flexible and frequent access to funds compared to other account types. They are typically useful for business owners who need to regularly move funds in and out of the account. These include the following:
1. Easy Business Financial Management
Current account opening is ideal for professionals and business owners to manage their finances in an organised and efficient manner. A current account has no restrictions on the number of transactions made within a period. Such flexibility is especially beneficial for enterprises making multiple transactions daily. Current account holders can make limitless withdrawals, deposits, and transfers without worrying about the transactional limits.
Moreover, it offers multiple features, including net banking, mobile banking, overdraft facilities, chequebooks, etc., making it easier to handle everyday transactions. With high flexibility without restrictions, business owners can easily manage their cash flow, receive customers’ payments, and make vendor payments.
2. Easy Financial Access
Current account holders can easily access the required funds through multiple channels, such as debit cards, net banking, chequebooks, etc. As a result, businesses can pay their employees and vendors without delay. Access to funds through multiple channels ensures quick and efficient business operations.
Business owners with current accounts also easily access credit facilities like credit cards and loans. Such services are particularly beneficial for entrepreneurs who require money for investment or expansion. That means current account holders can easily apply for loans and credit cards and gain access to the needed funding when necessary.
3. Safety and Security
Current accounts are safe, as financial institutions use several measures to protect their customers’ funds and information. Some advanced security measures include firewalls, encryption, two-factor authentication, etc., which prevent unauthorised account access and ensure safe business transactions with peace of mind.
4. High Level of Customisation
Many Indian financial institutions offer customisable facilities with minimal fees and charges for current accounts. That means business owners can opt for the facilities and features they need for their business. Moreover, they can choose the level of service they need, ranging from basic to premium accounts with dedicated managers.
Many current accounts allow users to hold multiple currencies. This is particularly beneficial for businesses conducting international operations. With a current account that supports multiple currencies, companies can receive and make payments in their preferred currencies without paying conversion charges.
5. Additional Facilities
A current account offers several additional facilities useful for business owners. Some of the most sought-after ones include the following:
· Overdraft Facility: An overdraft facility is one of the biggest advantages of current account opening. It gives access to more money than the amount available in the account up to a pre-determined limit. This facility is extremely useful in case of a sudden emergency or cash crunch, helping businesses manage working capital.
· Net Banking: Current account holders can use net banking facilities, which make it easier for them to access account information, transfer funds, check balances, or make payments from anywhere. They can also monitor cash flow and track financial activities with this facility.
· Others: Apart from these, a current account offers additional benefits like free NEFT, IMPS, and RTGS, free demand drafts, high pay order limits, etc. It also offers services like anywhere cash deposits, automatic transfers, sweep FD, etc.
Current account opening is a critical tool businesses use to manage their finances efficiently. Offering a wide range of features and benefits makes it easier for account holders to handle everyday transactions, manage working capital, and access funds when required. The facilities of customisation and credit facilities make these accounts a valuable asset for entrepreneurs looking to invest or expand. With the widespread adoption of net banking and multiple currency options, current accounts have become indispensable tools for companies of all sizes.
