Current Account is a special type of deposit account meant to accommodate a high number of transactions, which makes it suitable for businesses, professionals, and organisations that have high banking requirements. It facilitates unlimited deposits, withdrawals, the issue of cheques, and other transactional facilities with ease.

Besides the high-transaction features, Current Accounts offer services like overdraft facilities, through which the account holders can withdraw more than their available amount and settle the amount later.

With a Current Account, businesses can manage their day-to-day finance functions effectively while enjoying flexible payment facilities, better liquidity, and personalised banking services.

Why should you choose a Current Account?

High liquidity

Current Accounts facilitate immediate access to money, so that companies can manage day-to-day costs, supplier invoices, and unforeseen financial needs without any lag. The convenience of cash availability on demand enables an even flow of operations.

High transaction limit

Intended for heavy banking operations, Current Accounts facilitate a much larger quantity of deposits, withdrawals, cheque clearing, and fund transfers than savings accounts.

Overdraft facility

Most Current Accounts are accompanied by an overdraft facility, enabling firms to overdraw more than their available balance to a limit approved by them. This is essentially a short-term credit facility that assists in bridging working capital lags or unexpected payment obligations.

No interest earnings

Although money in a Current Account often fails to earn interest, this is balanced by the ease of account flexibility, high transaction volume, and other services specifically designed to meet business needs.

What are the types of Current Accounts?

·       Zero Balance Current Account

A type of Current Account, usually with no minimum balance restriction, hence it is called a Zero-Balance Current Account. Though the balance requirement is not stringent, it still offers banking facilities like cash deposits, withdrawals, cheque books, Debit Cards, internet banking, and unlimited transactions. It's designed for retailers that need the freedom of a Current Account but don't need to have a specific balance.

·       Startup Current Account

Specifically for new and expanding businesses, this type of account suits startups by having minimal or no minimum balance needs and decreased transaction fees. The opening of such accounts is usually less complicated, and certain banks can even provide a starter kit to enable startups to enjoy professional services at an affordable price.

·       Foreign currency Current Account

This variant serves companies undertaking foreign trade by allowing smooth foreign currency exchange. It enables recipients to get foreign exchange income deposited directly into the account and initiate remittances in different currencies.

·       Specialised Current Accounts

Current Account types are created with specific business requirements. These might include additional features such as rewards, insurance products, or better customer service. While more feature-enabled, they can have higher minimum balance or maintenance charges.

Conclusion

A Current Account provides liquidity, easy access and high transactions. It provides smooth functioning, financial flexibility and aids in business expansion in a competitive market.

Keywords used: Current Account, Zero Balance Current Account