What is Current Account?
A Current Account is a transactional bank account designed primarily for businesses. It offers high transaction limits for cash deposits and withdrawals, both locally and nationally. This account type is suitable for individuals, sole proprietors, partnerships, private and public companies, HUFs, societies, and trusts.
How Current Accounts Work
Businesses often choose Current Accounts to efficiently manage frequent financial transactions like deposits and withdrawals. These accounts provide unrestricted access to funds when needed. However, to accommodate this high liquidity, banks typically do not offer interest on Current Accounts.
Types of Current Account
The type of current account you select can significantly impact your business operations. Consider the following options:
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Regular Current Account: A basic account with standard features like online banking and fund transfers. Requires maintaining a minimum balance and offers no interest.
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Start-up Current Account: Tailored for new businesses, offering relaxed initial balance requirements and additional support services.
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Global Trade Current Account: Designed for businesses engaged in international trade, providing streamlined cross-border transactions.
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RERA Current Account: Mandatory for real estate companies, with strict withdrawal regulations to comply with RERA guidelines.
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Merchant Current Account: Offers benefits like free cash transactions, fund transfers, and overdraft facilities for merchants.
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ActivMoney Current Account: Combines transactional benefits with investment opportunities by automatically transferring surplus funds into fixed deposits.