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4 Advantages And Features Of A Current Account
A current account is ideal for people with businesses or enterprises. This is because you have to make multiple financial transactions on a daily basis, and a savings account does not allow you to do that. Before you open a current account, it is important to understand the intricacies of it.
What is a current account?
A current account is a zero-interest account that uniquely suits the needs of companies, firms, enterprises or business people whose bank account needs are different from others. Businesses execute a high volume of transactions every day, something that a savings account does not facilitate.
Features of a current account:
Following are some of the exclusive features of a current account:
• You can open a current account in any nationalised bank.
• Current accounts are zero interest or no interest accounts. Under RBI directives, banks do not pay interest on this type of account.
• You have to maintain a considerable balance to keep a current account operational. In the vent of your demise, your nominee will receive the interest
• The documents you need to provide to the bank to open a current account are VAT registration certificate, income tax returns, PAN Card, audited balance sheet, etc.
Advantages of current account:
Having a current account in your name offers numerous benefits and advantages:
• Ease of transaction
There are no restrictions on the number of deposits/transactions you make in your current account. However, some banks charge a nominal fee. You can conduct bank transactions over the telephone via phone banking. You can make queries about your balance; ask for a new chequebook or any other services relating to your current account.
• Overdraft facility and instant fund transfer
The current account gives you the option of instant money transfer at the same interest rates as cash transactions, and also allows overdraft facilities as well as inward remittances, free of charge.
• Net banking facility
The current account holder can avail of their bank’s internet banking facility. The holder’s account and transactions are secured with multiple IDs. The banks also provide chequebook facility. You can access your account from any of the bank’s branches.
• Easy to operate
The purpose of a current account is to streamline transactions. The best part is you can use your account to transact anywhere in the country.
Knowing about the features and benefits of a current account gives you an idea of the same and makes it easier for you to take an informed decision.
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