Banks have different types of accounts that meet the different needs of customers. Among all bank accounts, the two most popular and helpful accounts are current accounts and savings accounts.
Savings accounts are benefits for individuals, whereas the current account is designed for business purposes only. Online Current account openings have come with high transaction limits on withdrawals and cash deposits. Keep reading this post to know more about the current account.
What do you mean by current account?
The current account is one of the best facilities offered by banks to businesses to handle the large volume of transactions daily. This bank account is different from a savings account. There are many perks associated with the current account that benefits a lot to business, enterprises, firms, etc.
It is easy to customize the current account based on requirements. It is the additional facility offered by the bank based on the customer and their transactions. It deals with a deposit that is liquid in nature and needs a higher minimum monthly balance at the time of account opening.
Features of current account
- The current account has the high transactional limits than the savings account.
- A current account is an interest-free account.
- It needs a higher amount of minimum balance at the time of account opening.
- Firms, individuals, businesses, and private and public companies easily operate their current accounts. A business is not able to run multiple current accounts.
- The current account does not have limits on cash deposits in a bank branch.
- The main goal of a current account is to carry out business transactions smoothly.
- Penalty charges are levied if the minimum balance is not maintained.
KYC and business documents you required to open your current account.
Here is the list of the KYC and business documents you require to open a current account.
- Signed application form.
- Address proof
- ID proof
- Copy of business partnership
- Article of association
- Address proof of your company
- Sales tax receipts
- Certificate of incorporation
How to open the current account
If you want to open your current account online, here are the steps you should follow: –
- First, you must verify your eligibility. You can visit the bank website and see the eligibility list for qualifying yourself for a current account.
- Now, move to the bank website and download your application form.
- Fill out the account application form with accurate details, including bank information, personal information, and business-related information.
- A list of documents is also available at the site that you need to submit while submitting the account application form.
- Now, submit the form with the attached documents at the bank site.
- Bank will verify your details. If all are ok, they will open your current account and notify you.
Current accounts make business operations easy. It helps the business owner to control the regular flow of income. In fact, it also allows you to track the financial transactions record, what comes in or what comes out of your current bank account.