What Is The Purpose Of Current Account?

Why should I open a current account?

Current accounts is ideal for carrying out day-to-day business transactions.

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..

Do you need a bank account for current?

We offer transparent pricing: A Basic checking account is free and a Premium checking account is $4.99 per month. A Teen account is $36 per year. It’s free to sign up for Current and all accounts start with a 30-day free trial.

How much cash can be deposited in bank in current account?

Monthly Average Balance (MAB) Requirement on Basic Current Account of Different BanksBankMonthly Average Balance (MAB)Free deposit limitsHDFC BankRs.75,00010 times the MABICICI BankRs.25,00012 times the MABAxis BankRs.10,000Up to Rs.2 lakhsIndusInd BankRs.10,000Up to Rs.2 lakhs3 more rows

What are the 3 types of savings accounts?

While there are several different types of savings accounts, the three most common are the deposit account, the money market account, and the certificate of deposit. Each one starts with the same basic premise: give your money to the bank and in return the money will earn interest.

What are the benefits of having a current account?

8 Benefits of having a current accountUnlimited transactions.Tracking.Online banking.Multi-city banking.Overdraft facilities.Helps organize business.Value-added services.Issue of bank guarantee.

What is difference between current and savings account?

What is the Difference Between Current and Savings Accounts? While a Savings Account is one wherein you deposit your savings with the bank and earn interest on the same, a current account is one where you deposit money to carry out business transactions.

How much money should you have in your current account?

A good rule of thumb is to keep at least one month of net pay in your checking at all times. Look for a checking account with no monthly fee and no minimum balance.

What are the types of current account?

Let’s take a look at the different types of current accounts there are, which are based on the different requirements you might have.Premium Current Account.Standard Current Account:Foreign Currency Account:Packaged Current Account:Single Column Cash Book.

What is current account in simple words?

A current account is a personal bank account which you can take money out of at any time using your cheque book or cash card. … A country’s current account is the difference in value between its exports and imports over a particular period of time.

What is current account and its features?

Features of Current Bank Account It is a non-interest bearing bank account. It needs a higher minimum balance to be maintained as compared to the savings account. Penalty is charged if minimum balance is not maintained in the current account. It charges interest on the short-term funds borrowed from the bank.

Which is best bank for current account?

Best Bank for current account in India [2020 List]ICICI Bank Current Account.Kotak Mahindra Bank Current Account.HDFC Bank Current Account.IndusInd Bank Current Account.Axis Bank Current Account.Citi Bank Current Account.Bank of Baroda Current Account.State Bank of India Current Account.More items…•

What are the benefits of current account and savings account?

Difference between a Savings Account and a Current AccountCurrent AccountInterestNo Interest earnedNo. of TransactionsUnlimited transactionsPurposeUsed for businessRequired BalanceHigh minimum required Balance2 more rows

Which is better HDFC or SBI?

HDFC Bank has always been one of the most premium valued banks in India. The stock trades as high as three to four times the book value. SBI, on the other hand, has had a value range of one or two-time book value at best….BankMarket capitalisation as of May 4HDFC Bank₹5 lakh crore1 more row•May 5, 2020

What are the disadvantages of current account?

(1) No Interest on Deposits. … (2) High Cost of Bank Services. … (3) Limit of Free Cheque Books and Free Demand Drafts. … (4) Cap on Free Cash Deposits & Free Cash Withdrawals. … (5) Higher Amount of Monthly Account Balance Maintenance. … (6) Confusing Fine Print. … (7) Transaction Fees. … (8) Bill Payments cannot be Automated.

What are the main features of a current account?

Features of Current Bank Account ↓Current bank accounts are operated to run a business.It is a non-interest bearing bank account.It needs a higher minimum balance to be maintained as compared to the savings account.Penalty is charged if minimum balance is not maintained in the current account.More items…

Who are applicable for current account?

Current account eligibility or who can open current accountResident individual.Hindu undivided family.Sole proprietorship firm.Partnership firms.Limited liability partnership firm.Private and public limited company.

Does current account give interest?

Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account. A Current Account is actually a no interest-bearing deposit account.

Can I open zero balance current account?

A zero balance current account can be opened in any commercial or non-commercial bank. One can choose from the list of top banks providing zero balance current accounts. The user needs to submit all the KYC acceptable documents along with the current account opening form at the nearest bank branch.

What is the minimum balance to be maintained in current account?

HDFC Current Account Minimum Balance and ChargesHDFC Bank Current AccountHDFC Bank Current Account Minimum BalancePremium Current AccountRs. 25,000 per quarterTrade Current AccountRs. 40,000 per quarterFlexi Current AccountRs. 75,000 per monthPlus Current AccountRs. 1 Lakh per quarter6 more rows•Oct 15, 2020