While the savings account is ideal for an individual/salaried people, business owners have different banking needs. And current account caters to businesses small and big. Let’s understand it better:
Salient features of a current account:
- Unlike savings accounts that is ideal for individuals who want to save money, current accounts are mainly used to service the needs of the businesses. Current accounts allow higher number of transactions on monthly cash transactions / withdrawal compared to savings account.
- One of the most important features of a current account is that it bears no interest at all. The funds in a current account are always made available to the business owner when they need it. Businesses require daily transactions where business owners need to buy /purchase goods, pay their vendors or receive money from their customers. In either case the current account serves the purpose. However to compensate for this extra liquidity that the bank provides, there is no interest charged on current accounts.
- Each business depending on its size, has few specific banking requirements. To cater to various businesses, proprietorship to small, medium and large set-ups, we offer five types of current accounts. To understand our various current accounts on offer and their features Click here.
- One of our current account Flexi Current Account offers the account holder the flexibility to earn interest on idle amount in the account. Click here to know more.
- The RBI Current account opening rules dictate that banks are free to open current accounts for customers who have not availed any credit facilities from the banking system, subject to due diligence.
- There is no tax on a Current Account.
- A Savings Account cannot be converted into a Current Account.
- Even if the individual is not a business owner, he/she can still open a current account.
- If one wants to open a current account as salary account in a bank, it can be done. However he will not earn any interest benefits.
