What is current account, What does Current account mean

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Current Account ie Current Account This is a type of account in which you can do many transactions in a day. What is current account, What does Current account mean, There is no limit in this, mostly current account is mainly for businessmen, firms, companies and public enterprises etc.

What is current account, What does Current account mean, In which you can do as many banking transactions as you want throughout the day. If you have a current account with the bank, then no interest will be paid by the bank on your account. That is, depositing money like a savings account will not earn interest. What is current account, What does Current account mean, the purpose of opening a current account is neither to earn interest nor to save. Rather, it is opened for the convenience of business, so that you can transact as much money as you want and as many times a day as you want through the bank. That’s why this account is also called by the name of current account. To keep the current account running, minimum balance has to be maintained. Otherwise, penalty can also be taken from you by the bank. Or your current account account can also be closed. Some charge is also taken by the bank to keep this account running, along with this the facility of check book is also provided in it.

what is current account

How many types of current account are there

Current accounts may be different in all banks, for which there are different policies. In this, we are going to give you an example of the type of current account of SBI Bank. And the current account policy of other banks is also almost the same.

regular current account

Regular Current Account is ideal for small businessmen, professionals, traders etc. who require a current account with all the features at a nominal cost. The minimum average balance in this type of account should be Rs 5000, in which up to Rs 5 lakh can be deposited free per month. No charge will be deducted for this and cash withdrawal and deposit facility will be available in all 22000+ SBI bank branches. Free NEFT/RTGS facility through Internet Banking and Mobile Banking. Along with this, 50 multicity checks free every month.

gold current account

The Gold Current Account is best suited for those leading businessmen, professionals, traders etc. Those who do bulk cash transactions and want to expand and diversify their operations. In this, substantial additional services are provided at concessional rates. Thereby reducing the transaction cost by a substantial amount. In this, the monthly minimum average balance should be one lakh. Free cash deposits of Rs 25 lakh per month can be made in the Gold Current Account, and the facility of 300 free multicity checks per month is also available.

Diamond Current Account

Diamond Current Account is best suited for reputed businessmen, top professionals, large traders etc. who are spread across the country. and undertake bulk cash transactions and large number of payment and collection transactions. In this, the monthly minimum average balance should be 5 lakhs, in which per month Rs. Free cash deposit up to Rs.1 crore and free 700 multicity checks per month.

Platinum Current Account

Platinum Current Account is for customers who want the best product for themselves and their business. All major services are provided unlimited free of cost in this current account, making it convenient and cost-effective for leading businessmen, top professionals, large traders, etc. to do bulk cash transactions and a large number of payment and collection transactions across the country . In this, the monthly minimum average balance should be 10 lakhs, along with this, many facilities are provided in it.

Conditions for opening current account

  • Current account is mainly for businessmen, firms, companies and public enterprises etc. This account is not opened for public.
  • To keep the current account running, each bank has its own separate monthly minimum balance maintenance condition.
  • For non-maintenance of minimum balance, you will have to pay penalty charges as prescribed by the bank, otherwise your current account may be closed.
  • You will not be given any interest by the bank on depositing money in the current account.
  • You will be charged by the bank for maintaining the current account and providing additional facilities to you.

Who can open current account

Current account is used to facilitate transactions for small, medium and large mainly businessmen, firms, companies and public enterprises. Current account is not for common man, savings account is opened for them. Because there is only one purpose of opening a current account, in which many daily banking transactions take place. Current accounts are meant neither for the purpose of earning interest nor for the purpose of savings, but for the convenience of business, hence they are non-interest bearing accounts. There is no daily limit for depositing or withdrawing money in this type of account, you can do as many transactions as you want throughout the day.

What are the benefits of current account

  • Current account allows all business transactions.
  • Demand draft facility in current account makes it easy to deposit and transfer money.
  • There is facility to withdraw and deposit money any number of times.
  • Banks usually also provide overdraft facility to the people having current account. It can be more or less according to the status of the account holder.
  • Current account also provides many facilities like internet banking and mobile banking.
  • The bank also provides the facility of statement of transactions to the current account holders on the basis of their demand.
  •  There is no additional charge for doing more frequent transactions in the current account.

What are the disadvantages of current account

not getting interest

The biggest disadvantage of opening a current account can be considered that no matter how much money you deposit in the current account, the bank will not give you any interest. While banks also pay 4 to 6 percent interest on the money deposited in the savings account. Apart from this, the bank also imposes a separate charge for maintaining your account, which has to be paid by the current account holder.

Maintaining Minimum Account Balance (Current Account Minimum Balance)

In the current account, the account holder is required to deposit a certain amount of money. According to different banks, it can be 3 thousand, 5 thousand, 10 thousand or 15 thousand or even more. If you can’t do this. That is, if you fail to maintain the required quarterly average balance, then its charge is also deducted. Each bank sets different penalty charges. Checks are used to withdraw money from the account. Banks issue free check books within a certain limit, for using more than this number of cheques, you may be charged for each cheque.

In this article you learned what is Current account, what is the meaning of Current account. We hope this information will prove useful for you.