Money constantly flows in and out in the business world, and managing this flow efficiently is paramount. This is where a Current Account comes into play, acting as the backbone of business banking.
Current Accounts are indispensable for entrepreneurs and established business magnates alike, providing flexibility, ease of transactions, and numerous other tailored features. And while many might think there’s just one type of Current Account, the reality is that there’s a diverse range, each catering to specific business needs.
This article will explore the different types of Current Accounts with their USPs.
Basic Current Account
If you want to know “what is a Current Account?”, let’s start with the basic one. At its core, a basic Current Account is like a regular savings account, but with a twist – it’s tailored for businesses. It allows numerous daily transactions, making it perfect for day-to-day business operations.
- No Interest: Unlike savings accounts, basic Current Accounts don’t usually earn interest, as their primary function is to support frequent transactions.
- Overdraft Facility: Many banks offer an overdraft facility, allowing businesses to withdraw more money than they have in the account, which can be a lifesaver in tight situations.
- Minimum Balance: Most basic Current Accounts require a minimum balance. However, this might vary from bank to bank, and some banks may offer competitive terms.
- E-statements and Alerts: To help businesses keep track, regular e-statements are provided. Instant alerts for transactions ensure transparency and security.
- Cheque Books and Debit Cards: Essential tools for business transactions, especially when dealing with vendors or making business-related purchases.
Understanding the features of a basic Current Account is the first step. As businesses grow and evolve, their banking needs change, and there’s likely a specific Current Account tailored just for those needs.
Premium Current Account
Step into the world of tailored business banking with the Premium Current Account, a level above the basic. Designed with growing businesses in mind, this account offers various advanced features.
- Higher Transaction Limits: Catering to businesses that have expanded operations and require frequent, high-value transactions.
- Specialised Business Services: This might include dedicated relationship managers, business advisory services, and special discounts on business products and services.
- Waivers: Many banks often offer waivers on certain fees and services for their premium customers.
If your business has outgrown the confines of basic banking and you’re looking for more personalised services and added features, the Premium Current Account is your go-to choice. It’s especially suited for businesses at the cusp of major expansion or those already operating on a larger scale.
Foreign Currency Current Account
The Foreign Currency Current Account is specially designed for businesses that deal with international clients or operate in multiple countries.
- Ease of International Transactions: No need to constantly convert money; conduct your business seamlessly in foreign currency.
- Hedging Against Exchange Rate Fluctuations: By holding foreign currency, businesses can protect themselves from the sometimes erratic movements of exchange rates.
- Global Debit Cards: These often come with higher withdrawal limits, suitable for international travel and expenditures.
- Opting for a Foreign Currency Current Account is a smart move for businesses that have spread their wings internationally, allowing smoother transactions and a hedge against currency risks.
Current Accounts for Startups
- Every little support counts when you’re just stepping into the business world with a startup. This is where Current Accounts tailored for startups come into the picture. They’re not just regular accounts but are equipped with features that cater specifically to the needs of budding businesses.
- Flexible Limits: Recognising that startups might not have huge transactions initially, these accounts usually come with flexible balance requirements.
- Additional Perks: Many banks offer complimentary services, from business advisory sessions to accounting software access, ensuring a smoother business journey.
- While some banks may offer a regular Current Account, a new-age financial institution like the Kotak Mahindra Bank offers several variations.
- Online Current Account: Enjoy a worry-free banking experience with no non-maintenance charges. Just pay as per your usage.
- ActivMoney Current Account: Get FD-like interest. on the idle funds in your Current Account.
- Neo Current Account: Specifically designed for small businesses, it only needs an average quarterly balance of Rs 10,000.
Things to Consider While Opening a Current Account
- Charges and Fees: Always review any monthly or annual maintenance fees and transaction charges.
- Customer Support: Ensure the bank has a reliable customer support system for quick resolutions.
- Overdraft Facilities: A helpful feature when managing business expenses.
Conclusion
Picking the perfect Current Account goes a long way in ensuring smooth financial operations for your business. With trusted financial institutions, businesses can choose from a spectrum of accounts, each designed to cater to specific needs. Dive in, research, and watch your business flourish with the right Current Account.
