Types of Current Accounts for Businesses
One of the compulsory requirements when starting a business is that of opening a Current Bank account. It is the best for carrying out business transactions, and keeping business separate from your personal expenses. It is required for any kind of business – big or small – current account is required to document company transactions and records. They have attractive offers associated with them because of the frequent transactions in these accounts.
It is easy to a current account all you need to provide is some proof of the business and business expenses to get the account.
There are various types of accounts available in India, so it is important to scrutinize each one and selecting the right one for you. Banks have a variety of offers and different type of business accounts to offer. Your bank will have the right solution for all your current account requirements.
These are accounts in which high amount transactions take place on a regular basis. When choosing an account you must consider how much you want to save for, duration and how much money you can afford to save on a monthly basis.
Look for an account which can give the best interest rates. Earning a good interest rate on this account should be a priority.
There are many offers associated with a current business account:
- Look for acurrent account which can adjust itself with your business cycle. It will give you freedom to control the average balance you maintain in the account. So higher the average balance in the account, higher the free limit you get.
- Some current accounts require a fixed average balance per month.
- Various provisions on free cash deposit
- Free non cash transactions
- Current accounts have perks like upto 200 free transactions
- Free cheque book pages, internet banking, phone banking services.
- Free demand drafts
- Instant mobile alerts
Current accounts can be opened by anyone over 18 years of age. It is a requisite for
- Sole proprietorships
- Private/ Limited companies
- Public enterprises
- Trusts, Societies, Clubs
- Local authorities or other Government bodies
Like several other accounts, there are certain requirements with a bank a/c to function properly. You require to keep a minimum balance on a current account and it is often higher than on a savings a/c, since the money involved is more. In addition, a minimum deposit amount is required to open the account; this amount depends on the bank and type of the account.
There are several current a/c options available – all that you have to do is assess your business requirement and then negotiate good terms with your banker, and get the perfect account for youto get the best out of your business current account.