What is the current account?
The current account is a bank account that is different from Saving Account. The current account is used for large transactions, so people who have to make multiple transactions from the bank in a single day need a current account. The current account does not account for interest as it continues to transact. The current account has no limit on transactions, so it is used by businesses. In the current account, a bank overdraft is also provided by the bank to the account holder. As a result, the account holder can withdraw more than the amount deposited in his account.
Why Current Account?
As we told you, if you are a businessman, which requires you to transact money several times a day, you must have a Current Account. An ordinary person should never open the current account because they don't get any benefit from the current account.
Minimum Balance:
You must keep a certain amount in your account to open your Current Account. This amount can be from ₹5000 to ₹25000. This fixed amount varies by all banks according to their own rules. You have to maintain quarterly Average Balance equal to the Minimum Limit in your account. If this fixed amount is not in your account by the bank, an additional charge is levied by the bank.
Benefits of Current Account:
The current account has, in a way, made huge profits to traders. Current Account allows business transactions to be excluded from individual transactions, making it easier to account for business accounts, tax returns, and other compliance. In addition, Current Account has many benefits –
Bank Overdraft– Current Account facilitates account holders to withdraw more than the amount deposited in their Account.
Transaction facility– The biggest advantage of the current account is how many transactions can be made in a day. No additional charge is to be charged for dealing more frequently in Current Account.
Like Net Banking– Saving Account, Current Account also has Free Service of Net Banking and ATM.
How To Open a Current Account:
If you want to open your Current Account, you can go to one of your nearest Bank branches and open the account. For the current account, you need to fill in the Form from Bank and submit all the required documents mentioned below. You can also apply online to open a Current Account.
Documents Required:
If you want to open a Current Account, you will need the following documents–
- PAN Card
- Passport Size Photo
- Registration Certificate of Business - GST Registration/Gst Shop Establishment Registration (For Proprietorship), Partnership Deed (For Partnership), Incorporation Certificate (For Company)
- Address Proof of the Network Firm/ Company/HUF)
- ID and address proof of partners and directors (for partnership or current account of the company)
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