4 Best Current Account Options For Start Ups In India

The Prime Minister of India, Shri Narendra Modi this year announced the "Start-up India" initiative. The main objective of Start-Ups India is that India must become a nation of job creators instead of being a nation of job seekers.

This initiative will provide young entrepreneurs and businessmen a way to fund their idea by offering them a platform.

After the Start-Up India initiative, many banks have come up with current accounts to meet requirements of a startup and budding entrepreneurs.

The main objective of opening a separate account is to enable business person to conduct their business transactions smoothly.

Here are some of the banks offering start up account:

HDFC Smart Up Accounts

SmartUp is tailored to meet all the requirements of a start-up, offering banking and payment solutions, along with advisory and forex services.

The benefits of SmartUp include:

• Under this account, there will be enhanced transaction limit with no minimum balance requirement for first six months.
• PayZapp for Business, this will provide invoicing, delivery and collection solutions and secure money transfer.
• Dedicated Relationship Manager for taking care of all banking needs as well as investment advisory
• Recommendation of a Chartered Accountant for Tax, Regulatory and Compliance issues.
• End to end support for all foreign trade and remittances services with respect to regulatory guidelines and special exchange rates.

iStartup from ICICI Bank

ICICI Bank has launched iStartup a host of business solutions catering to the specific needs of startup founders. This istartup account includes interactive technologies, customized services and an efficient network that helps business grow and reach its financial goals.

The main advantage of istartup is an online platform where founders can find both clients and sellers for products & services from the comfort of your office or home. It provides Opportunity to meet leading Venture Capitalists and Private Equity players at ICICI events and summits.

Istartup account provides quick, secure and convenient banking experience to startup founders. Customized payment and collection solutions to suit business model. Preferred charges for import and export transactions for startup founders. ICICI have some impressive account options for Forex.

Kotak Bank Neo Current Account

Account with lowest balance requirement and features that can make a tremendous difference to a newly set up or a growing small business/enterprise.

Under the account, Business Class Gold Debit Card with enhanced daily purchase limit of Rs 175000 and daily ATM cash withdrawal limit of Rs 50,000 can be availed.

Neo Current Account can be opened as a single or joint account and requires an initial deposit of Rs 10,000/-. The minimum average quarterly balance requirement for a Neo Current Account is Rs 10,000/-.

Kotak ActivMoney which will help the current account balance above certain amount into Term deposits so you earn attractive returns on your idle balances.

SBI Incube

SBI InCube branch is a specialised branch which will address banking needs for setting up a start-up.

The branch will provide you the best suitable solutions in banking transactions and investments on a robust technology platform for your business model.

Experienced relationship managers, who know the exact solutions for your banking needs
comprehensive, competitively priced financial products and services. Integrated online and mobile banking solutions to save your time & money.

Limited advisory on investments, taxation and forex transactions that help optimise liquidity, capital preservation and return.Axis Bank Zero Balance Current Account
To support the potential world changer the bank has introduced a unique current account facility for start ups in India.

The zero balance account comes with no constraint in respect of managing the minimum average balance

No transaction charges are levied for

1. Forex /NEFT or RTGS transaction (inward or outward transaction)
2. Cash deposits and withdrawal anywhere
3. Cheque books, DD or PO issuances
4. Mobile and tele-banking alerts

Important thing to remember while opening a current account start-up

Before opening your current account it would be important to note and remember the most important points. Some of these are that the bank offering the current account must be located close to your office. This will enable ease of access though we do have online facilities these days. Government banks would offer you the best in terms of charges, though sometimes there could be question mark over the services. These days you can always switch accounts in case you are unhappy. However, it would be better to do some research before opening the account.

What is a current account?

In India, there are many types of accounts to deposit your money in banks. The most common one is the Current Account. The current bank account is opened by people who are having a higher number of transactions with the bank. A Current Account is essentially for business and business transactions. It is not for saving or investment purposes. With this current account, the customer won't get any interest. Current Account is meant to make the day to day banking transactions easier to the account holder. There are no restrictions on some transactions during a year not like a saving bank account. Banks will collect only maintenance charges in the form of service fees. No interest is paid on the balance in the current account. These current accounts can be open in any bank and the amount can be deposited and withdrawn at any time without giving any notice. It is also suitable for making payments to creditors by using cheques.

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