Tuesday, March 05, 2024

Banking

Who should open a current account?

current account

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A current account is a banking account which enables large business transactions of higher amounts. It is usually helpful for businesses as opposed to a savings account, which is mostly used by individuals for their banking needs. A current account offers businesses lucrative deals and helps them to facilitate their financial transactions with great ease. It is ideal for higher number of transactions and can also be customized as per your specific requirements. There are varied benefits and value-based services associated with a current account. What’s more is that you can also avail various schemes based on your bank for your current account, wherein you can choose superior offerings by the banks instead of a normal current account.

The best part of opening a current account in recent times is the fact that you do not have to visit the bank at all! You can simply get it done through your mobile phone or a computer. You can even open current online without stepping out to a branch of your bank.

Who should be opening a current account?

We all know that current account can be opened by anyone starting from a resident individual to giant firms. But does everyone really need a current account? The answer is definitely no.  So, let us look at who should open a current account in the first place.

Current accounts give the freedom of carrying out multiple monetary transactions which can also be higher in value, without being charged for them. This may not be the same in a savings account. Hence, current accounts are most suitable for businesses. It is recommended for any business firm, no matter how small or big it is, to open a current account.

Current accounts are beneficial to both startups and large corporates equally. For startups, many banks provide kinds of concessions and services that help an early-stage business in matters of finance. Entrepreneurs benefit a lot from these services. Similarly, giant corporates have gigantic transactions which are facilitated smoothly through current accounts, also giving them various other add-on benefits in their current scheme. There is no wonder in why all these businesses almost always prefer opening a current account.

Plethora of other advantages offered by current accounts

Current accounts provide other advantages that may help a business in more ways than one. Many banks offer free of cost folio charges, free demand draft facilities, lucrative overdraft facilities, significant number of free cheque books, waivers for many other services. After this number of free cheques and demand draft is met, you may need to pay nominal fees to back extra quantities of these. There are varied benefits and value-based services associated with a current account. They may provide free financial advisory services, ease in foreign trading, special Forex rates, etc. While some of these services are free of cost, to avail other advanced services, additional charges may be levied.

Disclaimer: The above article is subjective and generic in nature. The facilities offered by your bank and their features may or may not differ from those mentioned above.

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