It’s time to get in some banking knowledge. If you are looking to open a bank account, we’re hoping you’ve done your research and know which type of account suits your requirements the best. We’re here to tell you about current accounts, what they are, and how many types of current accounts exist.
Current accounts and Savings accounts fall under Demand Deposits, basically accounts where you can transact money on demand. Out of those two, current accounts are the interest free ones, that are highly recommended for people who run small to medium businesses and have a lot of bank dealings every day. Why? Because there are no restrictions on the amount of transactions per day, and also because you can avail the overdraft facility.
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
As the name says, it comes with tailor made features, exclusive for the accountholder, and is crafted to suit an array of transactions. This is suited best for the ones who are planning to perform high level financial transactions.
Standard Current Account:
This is a basic deposit account, also non interest bearing that comes with certain mandations: a minimum average amount that needs to be maintained on a monthly basis being one of them. It also offers standard procedures like internet and SMS banking, along with free-of-charge NEFT and RTGS transactions.
Foreign Currency Account:
As the name suggests, if you have a business that entails sending or receiving money in foreign currencies, this account is the best bet.
Packaged Current Account:
This one is better than a standard account and a little down the rung as compared to a premium account. It provides quite a decent amount of benefits along with features such as travel insurance, accident insurance, etc.
Single Column Cash Book
If you hold a business without maintaining a bank account, this one is the best deal. While it will not provide any features, it enables easy simple day-to-day transactions, which are al listed under separate columns, namely debit and credit.
A lot of the major banks offer varied services when it comes to current accounts. Take a stock of each, do your research, and make sure you pick the best of them.
To know more about current bank accounts, click here.
This content has been created in association with SBI.