Current Account

Banks are generally used to save and manage the flow of your transaction. Bank also keep the tracks of all your purchases and expenses that is a failed one or a successful one. The bank maintains the account of all its customers irrespective of their credit status.

There are various types of customers that a bank handle.

So, to make it simple for a bank to manage its customers, the bank has come up with the different categories of accounts. The bank has sorted their account categories based on the usage of customers,

i.e., some customers use their bank account in receiving their salaries, some use it as a saving purpose, some uses it for fixed deposit, some are frequent users while some are only monthly users.

• Current Account
• Savings Account
• Recurring Deposit Account
• Fixed Deposit Account

A current account used by the customers who are the frequent users. There is no limit on transactions that performed in a day. A current bank account is also known as the transaction account. The businessmen, companies, etc. generally use them. This account doesn't focus on the savings, deposits, etc.

It usually used for maintaining the business transactions. No interest paid in this type of account and although the bank charges the service tax on this account. Also, this type of statement doesn't have the facility of any fixed deposit because the transactions performed on the continuous basis.

The use of this account is authorized to only limited customers. If a company opens its current account in the bank for daily transactions than just some representative form a company can access the current account of that company.

The bank offers the facility of debit cards to their users. The debit card issued on the names of all the account holders. A user can withdraw its money directly from the ATM without going to the bank's branch. There are various types of debit cards present in a bank which sorted with some facilities and the transaction limit.

A customer can also make the use of cash. He or she can deposit the money directly to his or her bank account. A person should visit the branch of a bank and can submit the payment by completing some formalities.

The bank also provides the facility of the cheque books to its customers. The cheque is the mode of transfer of money from one account to another account. It is a paper instruction which has the receivers name and the amount mentioned in it. Whenever a person deposits a cheque to the bank, the bank transfers the indicated amount from the issued account to the specified account.

The bank also has the access of online banking to its customers. In this facility, a person can do various online transactions. He or she can transfer the funds to any other bank account. He or she can able to view all its operations online.

Passbooks distributed to the account holder. The main motto of this passbook is to keep the solid backup of all the transactions that take place in person's account during a period.

It helps the account holder by keeping track of profit and loss, by analyzing the amount and number of incoming transaction and the outgoing transactions.

There are a various number of factors present on which the allegations of an account depends. Also, the fees from bank to bank also vary. The private banks have different charges than the government ones.

Each country follows a different set of rules, which affect the overall interest rates. It also depends on the global turnover of the bank; big banks can provide the customers with better service as compared to the small ones.

The bank will charge the financial transaction rates from the account holder either a certain interval of time or after the preferred number of transactions. The bank also provides some free services to its specific types of accounts, i.e., senior citizen accounts, defense person accounts, student accounts, etc.

There is a valuable service which is only applicable to the current accounts. The function of overdraft is beneficial for the business accounts. In this service, if the account holder issued the payment to another customer who is more than the current balance present in the state than in this case the bank releases the amount and the maintain the negative balance in the customer's account.

This service is not free for the current account. The customer has to pay the specific amount which differs from bank to bank to get the access to this service.

The service of the debit card is active on the user's bank account for which he or she has to pay the annual charge to the bank. The fee is different for different banks and also depends on the type of card that is active.

The current account operates where the transactions are commonplace.

Generally, seen that various companies, entrepreneurs, job people use this type of account. It helps to maintain the transactions of an individual or a firm properly. Unlike the saving accounts, you can open this account with the name of your company which shows a better gesture of businesspeople.

It is helpful for those peoples who want to separate their business transactions from their expenses. This type of account is beneficial for the businessmen who are trying to gain more profit from its business as it shows the real-time profit and loss in your business by analyzing the incoming and outgoing of capital.

As an employee of any firm, you can open a current account in which you will receive your monthly salary. It will be beneficial for an individual to maintain its expenses and the pay.

In India, all banks whether it is government or private has the facility of the current account. The process of opening the current account:  

• The person needs to contact the bank of his choice. After that, he needs to visit the nearest branch of the bank.
• Now the person has to fill out the given applications wholly and correctly.
• The person has to attach the various documents that are needed by the banks along with the signature.
• Now the bank executive will verify all the information that you filled out in an application form and also that you have provided them with all the required documents or not.
• After the verification procedure, the executive will accept your application request.
• Now the bank executive will complete your KYC formalities.
• Now your current account is successfully opened.

List of required documents: -

• PAN Card
• Aadhaar card
• Address proof of all the account holders
• Photographs
• Proof of company's ownership
• Job letter (in case of salary account)
• Charter of incorporation (in case of a company)
• Nominee ID proof

If a person is short of any of the above documents that he or she has to fill out an application form.

Different banks have different types of current account. Some bank names them as Premium, Advantage, Standard, etc. and some of the banks categorize their current reports as current value account, growth current account, simple current account, etc.

The difference is only of the names, but the features of all the subcategories of all banks are same.

Irrespective of the different names, all the banks classify their current account on some factors. Bank classify their current reports from the transaction limit, free services, access to online banking, etc.

To choose the perfect type of current account a person should visit its nearest branch and get the detailed information on the different types of current account and then select the account that fits best with his or her needs.

There are always some queries left in the customer's mind regarding the current report. Some of the issues that generally arise in customer's mind are:-

It happens that the current bank accounts generally don't get any interest rates on their account balance. But nowadays some banks come up with an idea to give interest rates to their current account users. Before opening an existing account, it is highly recommended to the customer to ask out for the interest rates.

But it is assured that the interest rates which a bank offer on the current account is always less than the interest rates offered on the saving accounts.

Yes, all the current account has the benefits of online banking. In online banking, the person is having individual access to the features which helps him or her to perform various tasks without visiting the bank's branch.

By the use of online banking, a person can easily transfer the funds from one bank account to another bank account.

He or she can easily keep track of all of its transaction without updating the passbook. With the help of online operation, a person can efficiently complete its any pending payments.

No, you don't have to give any charge in respect to open a current account but there is an absolute minimum balance limit is present which you have to maintain.

This minimum amount varies from bank to bank and account to account. In some banks, you have to keep INR 25,000, or in some bank, it can reach INR 5,00,000. Always first clarify this with your bank before opening the current account.

The overdraft is the feature in which if an account holder released payment of the amount more significant than his or her present account balance then the bank will not cancel that transaction but in that case, the bank marks the account balance is negative and then the holder should have to pay that overdrawn amount.

The bank charges the interest rates on the overdrawn amount. A person can get this feature in his or her account by completing some application formalities with the bank. There is an annual charge of this feature which is decided by the bank.

No, there is no age restrictions present to open the current account. A person has aged less than 18 years than you will need the permission of your parents and get the application duly signed by them.

If you are above 18, then you only need correct documents to open the current account.