Advantages of Opening a Current Account:
Capable of handling large volumes of receipts and/or payments dexterously, a current account carries out all business transactions promptly and properly. It enables limitless withdrawals in line with the levied cash transaction fees, if any.Let's take a look at the different types of current accounts there are, which are based on the different requirements you might have.
- Premium Current Account.
- Standard Current Account:
- Foreign Currency Account:
- Packaged Current Account:
- Single Column Cash Book.
The businessmen can withdraw from their current accounts without any limit, subject to banking cash transaction tax, if any levied by the government. However, the current account holder can deposit the cash from any other branch of a bank other than the home branch by paying a nominal charge as applicable.
Current accounts and savings accounts are basically an arrangement to lend money to a bank in the form of deposits, which they promise to keep safe until you withdraw or spend it. That promise is backed by the Financial Services Compensation Scheme, which insures deposits of up to £85,000 per person per banking group.
Best Banks for Current Account
| Banks | Maximum Cash Deposit Allowed |
|---|
| HDFC Bank | Up to ₹2 lakhs per month (for regular current account) |
| ICICI Bank | Up to ₹1.8 crores per month |
| Axis Bank | Up to ₹2 lakhs per month (for regular current account) |
| Bank of Baroda | Up to ₹1 lakhs per month |
In that case, you can do the following to get the money transferred.
- Login to SBI net banking with your credentials.
- Go to Funds Transfer page.
- Choose the option of 'Transfer Funds Within Your Own Accounts'
- Then, choose the current account from where you intend to transfer from.
The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments. The main components of the current account are: Investment incomes, e.g. dividends, interest and migrants remittances from abroad. Net transfers – e.g. International aid.
Here are some of the disadvantages of a current account:
- The rate of interest that one earns on the balance is very low.
- Services of package accounts have additional costs.
- Fine print and paperwork can be lengthy and perplexing.
- Corporate businesses can be charged huge fees.
Current Account Formula
- The formula of Current Account (Table of Contents)
- Calculation of Balance of Goods and Services.
- The balance of Goods and Services = (X-M)
- Total Income = 65+140.
- Total Current Transfers = -240+(-60)
- Total Current Account = (X-M) + NI + NT.
- Total Current Account =55.
What is another word for current account?
| checking account | savings account |
|---|
| account | deposit account |
| bank account | deposit |
| loan account | joint account |
| funds | |
Current Accounts can be opened by individuals, partnership firms, private and public limited companies, HUFs/ specified associations, societies, trusts etc. ii. The procedures/documentation relating to introduction and opening of Current Accounts for individuals are same as those mentioned for Savings Bank Accounts.
Features of Current Bank Account ↓
- Current bank accounts are operated to run a business.
- It is a non-interest bearing bank account.
- It needs a higher minimum balance to be maintained as compared to the savings account.
- Penalty is charged if minimum balance is not maintained in the current account.
A Salary Account is an account to which your salary gets credited. Usually, banks open these accounts on request of corporations and major companies. When the time comes for the company to pay its employees, the bank takes the money from the company's account and then distributes it to the employers accordingly.
A current account will typically give you a cash and/or debit card and a chequebook and may also have an agreed overdraft facility (essentially a form of credit should you need it).
A good rule of thumb is to keep at least one month of net pay in your checking at all times. Look for a checking account with no monthly fee and no minimum balance. Even better, find an account that reimburses ATM fees from other banks.
While there are several different types of savings accounts, the three most common are the deposit account, the money market account, and the certificate of deposit. Each one starts with the same basic premise: give your money to the bank and in return the money will earn interest.
A savings account is most suitable for people who are salaried employees or have a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently. Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account.
This is despite the fact that SBI's balance sheet is four times larger than HDFC Bank, has 10 times more customers, and is owned by the government of India.
| Bank | Market capitalisation as of May 4 |
|---|
| State Bank of India | ₹1.6 lakh crore |
| HDFC Bank | ₹5 lakh crore |
Savings account is an account where individuals keep their savings. Salary account is a type of saving account where you salary gets credited. Usually a bank will offer more benefits to a salary account because it is a fixed source of CASA. Every month 'x' amount will be credited to the account.
How do I find out what account type I have?
- Log in to Online Banking at
- From 'Account summary' select the account in the 'Personal accounts' section that you are interested in.
- Select the option 'View account details' to see your account name, account type, account number, sort code and bank address.
There is not specific requirement of GST registration to having current account. If you are registering as individual then saving account also can be use. For any other entity current account or any other relevant bank account like C/c account can be used.
