Whether you have a big business or small business, you need a current account to carry the seamless transactions. To handle work-related transactions, business owners should need a current account.
The current account is best fit for businesses that streamline deposits, withdrawals, and transactions. If you also have a business or you plan to open your current account, then there are many pointers you should consider while applying for a current account.
Considerations to open a current account
To open the current account, there is the need to consider many things in the account to open it in a hassle-free way.
1. Minimum balance needs
As the savings bank account needs you to maintain the monthly minimum balance, to use it in a hassle-free way. The current account also needs to maintain a monthly minimum balance. Ensure to check the requirements of the current account before applying.
This is useful if you only start your business or use the funds you keep in your current account. Choose the bank to open the current account that expects to maintain the minimum monthly balance in the account.
2. Online core services
It is suggested to open a current account with a bank that provides you with online and mobile banking facilities. The online portal of the bank allows you to open your current account online without visiting the bank branch. It facilitates online core services like salary and bill payments and funds transfers.
3. Perks and facilities
Before applying for a current account, it is suggested to check the perks and facilities offered by the bank. You should check whether the exclusive services, like auto sweep FD, doorstep banking, deposit limits, dynamic cash, account grouping, etc.
It is suggested to switch your legacy current account if it only gives you standard services, like monthly withdrawals and limited cash deposits, and does not have robust banking online platforms.
4. Transaction fee
Banks allow you to make unlimited transactions with a current account. They only possess the fee if you cross the transaction limits from the current account. If you think that your business is required to make deposits, withdrawals, and transactions beyond limits, then you should check the transaction fee associated with it. Ensure to check the charges schedule of transactions before opening your current account.
It is suggested to choose a bank that has high fee transaction limits and low transaction fees.
5. Overdraft facility
Banks provide the overdraft facility to account holders with a current account. An overdraft facility acts like a low-interest loan that you can take against the balance in your current account.
A current account extends an overdraft facility that helps you to deal with the sudden cash need of your business. So, it is suggested to the bank not only provide this facility but also have high overdraft limits at best deals.
A current account for your business provides flexible transaction limits like higher cash deposit limits, unlimited withdrawals, etc. It is easy to use the current account, as it provides online and mobile banking facilities.