What is a Current Account?

Current Accounts serve as a banking option designed for businesses, companies, and entrepreneurs that offer convenience for regular & high-volume transactions and managing business finances. They do not yield interest on deposited funds, unlike savings accounts. Features like debit cards, chequebooks, and overdraft facilities are provided to make it a suitable tool for day-to-day financial transactions.

Features of a Current Account:

• No Interest: Unlike savings accounts, current accounts typically do not earn any interest on the deposited amount.
• Higher Transaction Limits: Current Accounts often come with higher transaction limits, making them suitable for businesses with frequent transactions.
• Overdraft Facility: Some current accounts offer overdraft facilities, allowing businesses to withdraw more than the available balance, up to a certain limit.
• Business Transactions: Current Accounts are primarily designed for business use, facilitating transactions such as payments, receipts, and payroll.
• Minimum Balance Requirement: Similar to savings accounts, current accounts may require customers to maintain a minimum balance, although the threshold is often higher.
• Chequebook: Current Accounts typically come with a chequebook, which is useful for making payments and transactions.

A savings account and a current account are two common types of bank accounts offered to individuals crucial for personal and business transactions. A savings account is designed to save money over time. It typically offers a modest interest rate on the deposited amount. However, a current account is primarily used for business transactions and frequent withdrawals. It usually does not offer any interest on the deposited amount.