Benefits of Current Account - LegalDocs
What is Current Account?
In India, you can easily undertake business by complying various governing and banking laws. Banking laws are useful for business growth all over the world. There are several banking advantages for personal and business banking, and the current account comes under business banking.
A current account is usually opened by a business entity to carry all the day to day transactions. A current account attaches zero-interest and there is usually no cap on the number of financial transactions that can be made each day. The total number of current and savings accounts in banks has risen to 157.1 crores in March 2017, compared with 122.3 crores two years earlier.
A current account holder is allowed to handle large volumes of payments systematically and receipts on a regular basis. Not only this but a current account holder can avail various other benefits, so here in this article let us understand what are the benefits of Current account.
9 Current Account Benefits
1) Unlimited Transaction and Deposits
There are no such transactions related limitations for Current Account holders. A Current Account holder is allowed to perform unlimited transactions, the individual is not required to limit his transactions as compared to Saving account. Similarly, there is no such restriction applied to the deposits made into the current accounts. Along with that, current account holders can also deposit cash at other branches upon paying small fees as applicable.
It is possible to recall all your previous transactions as the bank keeps a record of every current account holders previous transactions. Therefore, the tracking can be done easily if you hold a Current Account.
3) Online banking
One of the most important current account benefits is obtaining an online banking service. There are several benefits under the Online banking service such as you do not have to visit banks physically to deposit checks as the amount can be received by NEFT or RTGS. Similarly, you can make payments easily by utilizing Online and mobile banking.
4) Overdraft facility
A current account holder avails an overdraft facility which means if he does not have enough funds he can request banks to provide the required funds for raw materials. By this, he will not have to face any hurdle in case of limited funds.
5) Multi-city banking
With the help of Online banking, you can easily operate the same business from multiple cities. In case you have a business or branches in some other city, then you can use the branch of that bank in that city.
6) Bank guarantee service
A bank guarantee service can be availed by the current account holder when he maintains a good track in his account. This helps to grow your business and attract several people towards your business.
7) Segregate business finance from personal finance
A current bank account helps to maintain the difference between the personal and business account. Opening a separate current account in which business income and expenses are recorded helps in bringing about a distinction of what should be in a business account and what should be in a personal finance account.
Opening a current account can help in facilitating this process. You could give them a letter issued by your bank stating that you hold a current account. Alternately, the credit-worthiness can also be checked using interbank connections.
9) Other benefits
The business which holds current account can get various rewards such as no extra fees on remittance, make unlimited withdrawals, fund transferability, etc.
A current bank account is not for saving money it is basically for managing the money for your business. It is a service which helps you access your business in the right way. We hope that you have understood the benefits of opening a current account. In case, you wish to open current account online, you can consult with LegalDocs experts.