5 Types Of Current Accounts In India

By Author: Vani Malhotra
Total Articles: 3

A current account is suitable to meet the needs and requirements of businesspersons, who have to make multiple transactions on a daily basis. Savings accounts impose restrictions on such dealings and are not ideal for people with businesses or enterprises. However, before you open a current account, you need to know about the different types of current accounts and their features:

1. Standard Current Accounts
It is a non-interest or zero-interest account, where you can deposit the money. You have to maintain a minimum balance and a final average balance every month. The standard current account provides chequebooks, overdraft options, and debit card facilities. Other services offered are internet banking, phone banking, SMS banking, RTGS and NEFT transactions, free of charge.

2. Packaged current accounts
This account is much like a standard current account, which comes with some added perks such as travel insurance, medical insurance, and roadside assistance among others.

3. Single column cash book accounts
Simple cash accounts or single column cashbook accounts allows you to make daily transactions. The only downfall is that it does not provide an overdraft facility. It is suitable for those whose businesses do involve bank accounts. It is essentially a cashbook, which keeps records of daily transactions, maintaining separate columns for debit and credit.

4. Premium current accounts
They are also called gold bank accounts. They come with plenty of benefits and rewards for account holders. Your bank analyses your needs and customises its services to suit your requirements.

5. Foreign currency accounts
This type of current account is beneficial to those businesses, which carry out transactions in foreign currencies. They are usually managed as current accounts but can also be maintained as a savings account.
With a fair idea on all types of current accounts, you can opt for the one that is ideal for you before you open a current account.