Who Should Open Current Account? How is it Different from a Savings Account?

Posted By:
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Current Account is a type of bank account which is relevant to the people who run business. Such accounts can be opened with public or private sector banks. Current accounts is ideal for carrying out day-to-day business transactions.

    Who Should Open Current Account?

    The main objective of this account is to enable the account holder to run his business smoothly as there is no limit on number of transactions or cash withdrawal. Click to know the difference between savings account and current account.

    Here are some of the features of the current account:

    1. Current account can be opened to run a business
    2. Usually, interest is not applicable for the amount held in the current account. While, some banks have introduced special current accounts where interest is paid
    3. It enables a bank to collect money on behalf of its customers and credits the same in their customers' current accounts.
    4. It enables the current account holder to obtain overdraft facility.
    5. It enables free cheque payments and collection anywhere in India
    6. Minimum balance to be maintained is high when compared to the savings account.
    7. There are charges if minimum balance is not maintained in the current account.
    8. The current account holders are provided with higher number of cheque books
    9. Current account are not meant for savings and investment purposes, and many banks do not give interest on the amount.
    10. The current account enables a bank to collect money on behalf of its customers and credits the same in their customers' current accounts.

    If anyone is found doing business transaction in savings account, the banks all have the right to question you and may force you to close the accounts and open current account.

    GoodReturns.in

    Read more about: current account banking
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more