Quick Answer: What Are The Benefits Of Opening A Current Account?

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..

Who can open current account in Bank?

Current Accounts can be opened by individuals, partnership firms, private and public limited companies, HUFs/ specified associations, societies, trusts etc. ii. The procedures/documentation relating to introduction and opening of Current Accounts for individuals are same as those mentioned for Savings Bank Accounts.

What are the features of current account?

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.

Can a normal person open current account?

A Current account can be opened in most of the commercial banks. A current account being a zero-account, is generally associated with huge transactions on a regular basis.

Why current account is important?

Ease in banking transactions A Current Account by its very nature offers added benefits when compared to a personal Savings Bank Account. … A Current Account helps in easy and quick banking transactions, which becomes very important while running a business.

How much money should I keep in my current account?

one monthA 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.

Which is best bank for current account?

Best Bank for Current Account in India 2020#1. ICICI Bank Current Account (For Best Technology)#2. HDFC Bank Current Account (For Best Products)#3. IndusInd Bank Current Account (Lower AMB yet Great Features)#4. Axis Bank Current Account.#5. Citi Bank Current Account (For Global Business)#6. State Bank of India Current Account (Widespread Reach)#7. … #8.More items…•

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 are the charges for current account?

Upto Rs. 10000: Rs. 2.50/- + GST.Above Rs 10,000/- and upto Rs 1.00 lakh : Rs 5/- + GST.Above Rs 1.00 lakh and upto Rs 2.00 lakh: Rs 15/- + GST.Above Rs 2.00 lakhRs 25/- + GST.

What documents need to open current account?

Proof of ID, Address & Signature Proof of KartaPassport.Driving License.Voter ID card.Aadhaar card.PAN card.Letter issued by the National Population Register.

What are the advantages of opening a current account?

Here are a few advantages of a having a Current Account:Easy management. One of the best features of a Current Account is the ease with which it allows you to manage your finances. … Building business reputation. … Overdraft facility. … Credit worthiness. … Tracking business growth.

Can I open 2 current accounts?

You can’t have more than one current account You can have as many current accounts across as many different financial institutions as you like. There could also be benefits to having more than one bank account. So, for example, some bank accounts may pay you more interest on your credit balances than others.

Which account is better saving or current?

A savings account can only be opened by individuals for their use. It is generally opened for a short term to save money for vacations, make big and small purchases, etc. Current account is opened by businesses or firms who want to conduct various bank transactions according to the need of their business.

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.