How Can Businesses Benefit with a Current Account?


Knowing the benefits and essentials of having a current account is an important aspect of any business. It gives them more flexible and frequent access to funds.

Diving Into Current Accounts: Benefits and Essentials for Businesses


A current account, often referred to as a financial account, is a kind of bank account kept either jointly or exclusively for regularly conducting high-value transactions. Unlike savings accounts offering interest, current accounts are related to liquid deposits. Most people who establish current accounts are company owners, partnership businesses, trusts, associations of people, public and private companies, etc.

As per current account meaning, customers can deposit and withdraw money whenever they want without giving notice. The account is perfect for utilising checks to pay debtors. The primary goal of a current bank account is to facilitate seamless financial business transactions for the entrepreneurs who possess them. 

Features of a Current Account


To have a better understanding of a current account, let's talk about a few more features:
  • Current accounts are sometimes called business bank accounts as they are only available to companies, significant businesses, and company owners.
  • A current account's primary function is facilitating business owners' seamless execution of transactions linked to their enterprises.
  • Similar to your savings bank account, you will receive a debit-cum-ATM card on your current account. This current account may also be used for online transactions via internet banking.
  • An account that does not yield interest is a current account. It indicates that account holders do not get bank interest on the money in their current accounts.

Basics of Opening a Current Account


A current account is intended to provide more features than a standard savings account. A current account, therefore, comprehends your particular company's requirements.

There is no minimum balance requirement and a clear, straightforward charge structure offered by new banks such as IDFC FIRST Bank. Additionally, free cash deposit limitations or current account minimum balances are intended to allow you flexibility and are up to ten times the average monthly balance (AMB).

Benefits of Opening a Current Account for a Business


Here are some benefits of the current account. You can also enjoy these features when you open current account online with IDFC FIRST Bank.
  • Net Banking: Utilise an integrated application with a single sign-on for streamlined access to FX rate booking, Trade flow, and CMS.
  • Complimentary Anywhere Banking: Enjoy the convenience of complimentary Anywhere Banking, a pioneering service covering both home and non-home branches.
  • WhatsApp Banking: Access banking services conveniently through WhatsApp.
  • Zero Fee Banking: Experience zero fees on commonly used Current Account services, including free DD issuance, NEFT/RTGS/IMPS, and alerts.
  • Beyond Banking: Avail complimentary Beyond Banking services, with over 100 offers spanning HRMS, ERP, Travel, Legal, Taxation, Advisory, Society Management, Logistics, and more.

Essentials of Opening a Current Account for Businesses


The prerequisites for initiating a current account may vary among financial institutions. Typically, both banks and Non-Banking Financial Companies (NBFCs) impose specific criteria that need to be fulfilled before opening a current account:
  • Eligible Entities: Current accounts are available for private limited companies, public limited companies, single proprietorship businesses, or limited liability partnerships.
  • Company Incorporation: The company seeking to open a current account should have been incorporated within the last three years from the account opening date.
  • Resident Business Owner: The business proprietor must be a resident of India and possess an Indian trade license.
  • Account Type: A current account can be established as a single or a joint account.

Conclusion


Given the numerous advantages, a current account is an essential tool for any small business, facilitating the seamless management of day-to-day transactions. If you are considering applying for an online account, IDFC FIRST Bank provides options such as the FIRST Booster Current Account, Freedom Account, World Business Account, and Segmental Accounts.
These accounts offer features like flexible anywhere cash deposit limits, complimentary NEFT/RTGS/IMPS transactions, low minimum average balance requirements, and more. This ensures you can concentrate on your business endeavours without concerns about banking hassles.


Comments

Author: Umesh02 Jan 2024 Member Level: Gold   Points : 3

A current account is very handy for business operations. Almost all the business houses or business enterprises will have current account in the banks. The purpose of current account is not to earn money from the interest that Bank provides on our funds but to have flexibility to move and operate funds multiple number of times with ease. Then there are overdraft facilities available in the current account which the user can avail from time to time depending on the need of money for the business.



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