Want to Open a Basic Current Account? Here are 5 Features You Should Check

Posted by John Judge on February 3rd, 2021

With a savings account, the primary objective of the account holder is to deposit his/her savings. The deposited amount earns interest and can be accessed as and when needed.

But the banking needs of businesses are different. They are generally required to carry out multiple transactions on a regular basis. Hence, the primary objective is the instant accessibility of banking services with higher transaction limits. A basic current account offers these facilities.

But with most banks now offering current accounts, how will you pick the best? Compare the banks based on these five features-

1. Type of Current Account

The banking needs of every business are different. As a result, a single type of current account might not be a very practical choice for every business. To better meet the banking needs of all the different types of businesses, there are a few banks in India that offer various types of current accounts.

Some of the most popular options are the RERA Account, Escrow Account, Nodal Account, and Virtual Account. The features of these accounts are customized to offer enhanced banking convenience. Businesses can select one that best meets their requirements.

2. Minimum Balance Requirement

As with most savings accounts, account holders are required to maintain a minimum balance in their current accounts. There can be a penalty in case the account balance falls below the minimum limit.

While selecting a current account, do check the minimum balance requirements of the bank. The lower the balance limit is, the higher the flexibility for you to manage your business finances.

3. Overdraft Limit

Another vital aspect of any current account is its overdraft facility. It is a type of credit line which enables you to withdraw a higher amount than you have in your account. Businesses often use this overdraft facility to keep up with their financial commitments.

At the time of selecting a current account, do check the overdraft facility offered by the bank. Give special attention to the overdraft limit and the interest charged by the bank.

4. Account Accessibility

The banking needs of a business are challenging, to say the least. Thus, you need a bank that enables you to access the account and its services as conveniently and instantaneously as possible.

So, the bank you select for your current account should have a vast network of branches and ATMs across the country. It should also have a secure and user-friendly online portal and mobile app for on-the-go banking.

5. Additional Services

Apart from the features discussed above, you should also check the bank's add-on services before you open a basic current account. There are banks that offer services such as doorstep deposit and cash delivery, free cheque pickup, same-day cheque clearing, and more.

Do consider a bank that offers these additional facilities as they will make business banking more convenient.

Selecting the Best Current Account in India

If you are confused between the different current accounts offered by banks, then the features listed in this post can help you select the best.

As you will have a long-term business relationship with the bank, ensure that you thoroughly check all the features, limits, and other terms and conditions to make the right selection.

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John Judge

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John Judge
Joined: February 19th, 2019
Articles Posted: 14

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