ALL >> Investing---Finance >> View Article
What Are The Benefits Of Current Account?
A current account is a type of bank account with unique facilities. These types of accounts are preferred by businesses, companies, public enterprises, educational institutions because they have a higher volume of low-value transactions.
Almost all commercial banks offer a current account, i.e. both scheduled and non-scheduled commercial banks. One of the main features of a current account is that it does not earn any interest on its balance.
Benefits of a current account:
One of the best features of a current account is that it provides complete and unrestricted liquidity to the customer. Unlike a savings account, there are no restrictions on daily withdrawals or deposits of cash. Unlimited free deposits are allowed up to a particular limit. There are no limits on withdrawals of funds. This provides a lot of liquidity for businesses to manage their operations.
2. Easy account opening:
Opening a current account is very simple, especially since several lenders have the current account opening formalities entirely online. You have to fill up a form, and the customer representatives from the bank will contact you for further formalities to open a current account.
3. Overdraft facility:
One of the benefits of getting a current account is that the business can get an overdraft facility where funds are borrowed at a cheaper rate of interest as compared to a regular loan. These funds can be repaid by depositing cash into the account. An overdraft is the easiest way of infusing funds into the business.
4. Net and Mobile Banking:
Most banks extend mobile and internet banking to current account holders. A current online account makes it easy to check balances, make transfers, and have a check on the account.
5. Multi-city banking:
A current account provides a business with multi-city operations. It is possible to deposit funds from all over the country which is very useful for businesses spread geographically.
6. Other value-added services to business owners:
With the competition among banks, business owners can get a whole range of different value added services such as:
• Higher free withdrawal and deposit limits
• Cheque collection facilities
• Monthly account statements
• Relationship managers
• Discounts on other services
These value-added services help a business to save costs and expand.
7. Bank guarantees:
Having a current account with a healthy balance can help a business get a bank guarantee which is useful for companies looking to get into foreign trade.
Author Bio:- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about current account opening. Through her work, she has explained its benefits
Investing / Finance Articles1. Check Gift Card Balance Using Online Discover Gift Cards
Author: Discover Gift Cards
2. Should You Be Taking Loan Against Property?
3. How To Make Repaying Home Loans Easier?
4. How Should You Decide The Tenure For The Repayment Of Your Home Loan?
5. Basics Of Borrowing And Repaying Loans.
6. Guide To Managed My Vanilla Gift Cards
Author: Vanilla Gift
7. बँक ऑफ महाराष्ट्रतर्फे कोविड पतपुरवठा सहाय्य
Author: sameer shah
8. Did You Know These Facts About Fixed Deposit?
Author: John Judge
9. How To Send Money From Europe To India? 3 Simple Steps You Should Follow
Author: Reuben Williams
10. Why Are Nbfcs Great For Borrowing Loans Amid Covid-19 Pandemic?
11. Top Factors That Determine Your Mortgage Interest Rate
Author: Rahul Kumar
12. What Are The Benefits Of Taking Loan Against Property?
13. How To Get A Business Loan In 5 Simple Steps
14. All-you-need-to-know Before Deciding Your Home Loan Tenure!
15. 5 Myths About Small Business Loans Debunked