A brief guide on the type of current account

A brief guide on the type of current account

If you want to open a current account for your business but do not know which type of current account meets your needs, then this post is suitable for you.

We are here to tell you the type of current account with its features so that you can apply for the best one. Before diving into the type of current account, let us understand the basics of how to open current account online

What is a current account? 

The current account is the best bank account for business. No matter whether you run a small business or a big company, you need the current account to perform seamless transactions. 

It is an interest-free account, which means you do not earn the interest on your deposits as a savings account. Still, it is a better option than a savings account because it allows you to make unlimited deposits, withdrawals, and transactions. 

Such type of account needs a monthly balance to be maintained in it. You can perform a large number of transactions in a day without any limits and get the benefits of overdraft facilities associated with it.

List of Different current accounts

There are different types to open a current account offered by the bank to meet the different needs of the business. Some accounts only allow you to make only transactions, whereas some accounts come with premium benefits. 

  • Standard current account

One of the important and best types of current accounts is the standard current account. It is called the basic deposit account. It is considered a non-interest-bearing account that has some specifications. 

There is a need to maintain the minimum monthly balance in a standard type of current account every month. Moreover, the account holders can get the standard services from this account, like SMS banking, Net Banking, chequebook facility, etc. 

  • Premium current account

The current premium account gives access to customized and premium features to account holders. This account is designed in such a way that it meets every transactional need of customers.

It is a suitable account for those individuals who want to perform a high number of transactions daily. It helps the business to perform transactions smoothly. 

  • Packaged current account

The package’s current account functions in between the premium and standard types of current accounts. It is a better account than a standard current account because it provides a range of decent benefits, like travel insurance, accident insurance, etc. 

But it is not a tailor-made account, as a current premium account that provides top-notch facilities to customers. 

  • Foreign current account 

The current foreign account is the best type of current account for those who want to make transactions out of the country. The functionality of this current account remains the same as the other current account. 

Conclusion

The different types of current accounts are used for different purposes. If the business need to perform transactions out of the country, then it should open a foreign currency account. If they need to perform many transactions with exclusive facilities, then they should open the current premium account.