Ahmedabad: A prospective account holder might not know the various types of accounts that a bank offers. However, the most basic ones are the current account and savings account. Understanding the advantages of current accounts is quite imperative as it helps you with more flexible access to your funds.

They are used for daily banking activities and are most appropriate for those who transact money from one account to another. The following points highlight the features and benefits of the current account opening minimum balance.

Why Should You Consider Opening a Current Account? Understanding the Top Benefits

In short, opening a current account has several benefits. Let’s highlight them one by one in the given points:

Does Not Require a Minimum Balance

Your business might have made sales, and your payments haven’t yet arrived. However, you need to make bill payments before the last date. That means you have to make the payment before your profit arrives. In such circumstances, you can consider the overdraft facility.

A big plus of opening a current account with minimum balance is that it has the overdraft option. This means you can easily overdraw the account for a short interval of time to meet the capital requirements.

Enjoy Limitless Transaction

With steady business growth, the transaction volume will increase. That means there will be a time when your business’s account will undergo unlimited transactions. That’s where the current accounts save you. It does not include any transaction limits, so you can make many transactions in one month through various modes like cheques, online, cash, etc.

Never Run Out of Cheque Leaves

Your bank gives you a chequebook for a savings account for that particular year. So, you had to go to the bank and pay for another chequebook once the last leaf was used. However, you won’t run out of cheque leaves with your current account. You can get as many cheques as you want to use them each month. Surprisingly, they are free of any additional expense. So you can get the chequebook refreshed each month. You can even transact without running out of cheques.

Another benefit of these accounts is that they can provide a clear record of the transactions for analysis. So, they show exactly where the money is going or coming from.

Outlining the Top Features of a Current Account – Here’s What You Must Learn

The following are the top features of a current account to learn before proceeding with current account opening minimum balance:

1. Immediate Access – Get instant access to your funds round-the-clock. Customers can make payments, withdrawals and deposits when needed.
2. Overdraft Facility – Lets customers withdraw money more than what they have in their account for the time being.
3. Direct Debits – Customers can better set up direct debits to make frequent payments from their accounts without the need to do it themselves.
4. Digital Banking – A majority of current accounts provide you with digital banking facilities. This lets customers check their balances and transactions. They can also make payments anywhere, anytime.
5. Mobile Banking – Most banks offer mobile banking, and this feature lets you make payments instantly. You can also check your balance after making the payment.
6. Credit Balances Interests – A few current accounts might offer interest on credit balances, but they are usually minimal.
7. Multi-Currency Accounts – Some banks also provide multi-currency current accounts. This enables customers to have multiple currencies in a single account. They can switch between these currencies from one time to another.
8. Lower Expenses – Banks provide lower fees or free facilities to customers of current accounts.

So, these are the basic features and benefits that you need to learn before proceeding with the current account opening minimum balance steps.