How Current Account differs from a Savings Account?
A Current Account is designed for businesses and frequent transactions, offering higher transaction limits but no or low interest. A Savings Account, on the other hand, is meant for individuals to save money, provides interest on deposits, and has limited transactions.
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Current Accounts and Savings Accounts are meant for different financial activities. Savings Accounts are meant for people who want to increase their deposits with interest income, while Current Accounts are meant for firms, professionals, and institutions that need high-volume, frequent transactions.
A Savings Account has fewer minimum balance requirements and pays interest on the deposit but usually charges for monthly transactions. Current Accounts, allow more freedom in transactions with unlimited deposits, withdrawals, and issuance of cheques without such charges.
Additionally, Savings Account have no overdraft facilities, whereas Current Account typically provides this facility, allowing for short-term borrowing to cover working capital or unexpected expenses. This makes Current Accounts more appropriate for entities that value liquidity and convenience of transactions.
Can I open a Current Account without GST?
Yes, it is possible to open a Current Account without a GST registration. Here, based on the nature and constitution of the applicant, banks can ask for alternative documents. For individuals, documents like Aadhaar card, voter ID, passport, driving licence, job card, vendor ID, etc can be accepted. For organisations, a Voter Licence and Partnership Deed can be required. The specific requirements may differ from bank to bank.
If you present the other necessary documents as indicated, GST registration does not hinder you from opening a Current Account.
What is the difference between Zero Balance Current Account and Startup Current Account?
A Zero-Balance Current Account provides unrestricted transactions, cheque books, Debit Cards, and internet banking with no minimum balance condition. It provides end-to-end flexibility to businesses and professionals.
However, a startup Current Account is specific for new and emerging businesses, wherein low or negligible balance conditions may be provided instead of none. Though it may feature such features as unlimited transactions, cheque books, and internet banking, these are often subject to usage limits or restrictions based on the bank's policy.
What is a specialised Current Account?
A specialised Current Account is a type of Current Account that caters to the specific needs of businesses or professional groups. It typically exceeds regular banking services by providing more benefits in the form of reward schemes, insurance protection, priority service, or industry-based banking facilities. They are customised to bring more convenience, effectiveness, and value to specific business groups.
But since they are accompanied by extra benefits, specialised Current Accounts can also have a higher minimum balance or higher maintenance charges than ordinary Current Accounts.
Conclusion
Current Accounts are helpful for businesses, professionals, and institutions with frequent, high-value transactions and higher financial flexibility. From the ease of a Zero-Balance Current Account to the customised attributes of startup and specialist accounts, there is something for every business. Current Accounts are a strategic selection for hassle-free financial management. Selecting the right type not only streamlines daily banking but also supports growth, efficiency, and better cash flow management in today’s competitive business environment.
