{"id":21489,"date":"2023-02-08T15:08:17","date_gmt":"2023-02-08T09:38:17","guid":{"rendered":"https:\/\/open.money\/blog\/?p=21489"},"modified":"2023-07-06T11:57:25","modified_gmt":"2023-07-06T06:27:25","slug":"current-account-faqs-everything-you-need-to-know","status":"publish","type":"post","link":"https:\/\/open.money\/blog\/current-account-faqs-everything-you-need-to-know\/","title":{"rendered":"Current Account FAQs: Everything You Need to Know"},"content":{"rendered":"\r\n

What’s better than starting your own business, right?<\/span><\/p>\r\n\r\n\r\n\r\n

Before you can run a business, however, you need to take care of the basics. <\/span>Opening a current account<\/strong><\/a> for your business is one of them.<\/span><\/p>\r\n\r\n\r\n\r\n

Unlike a savings account that is meant for saving money, Current Accounts cater to business owners like you. Current accounts allow you to transact frequently while simplifying the taxation process applicable to your business.<\/span><\/p>\r\n\r\n\r\n\r\n

Now, let’s get down to the nitty-gritty of a current account.<\/span><\/p>\r\n\r\n\r\n\r\n

In simple terms, what is a current account?<\/b><\/h2>\r\n\r\n\r\n\r\n

A current account is a facility banks provide for business owners who require a high volume of daily transactions. It has several associated perks that are favorable for firms, companies, businesses, and public enterprises.\u00a0<\/span><\/p>\r\n

You can easily customize the current account based on your requirements. Banks offer facilities such as cheque books, unlimited NEFT and IMPS transactions, subject to different conditions based on your business, and the frequency of transactions.<\/span><\/p>\r\n

Current accounts deal with liquid money and hence require a higher minimum balance at the time of account opening.<\/span><\/p>\r\n

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Current vs. Savings Account: what’s the difference?<\/b><\/h2>\r\n

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While starting a business, it can be confusing to understand the differences between a current account and a savings account.<\/span><\/p>\r\n

Here’s a comparison that will clear everything up.<\/span><\/p>\r\n

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Category<\/b><\/td>\r\nCurrent Account\u00a0<\/b><\/td>\r\nSavings Account\u00a0<\/b><\/td>\r\n<\/tr>\r\n
Objective<\/b><\/td>\r\nContinual and frequent transactions<\/span><\/td>\r\nPromote saving habits<\/span><\/td>\r\n<\/tr>\r\n
Applicability<\/b><\/td>\r\nBusiness owners and enterprises<\/span><\/td>\r\nEveryone<\/span><\/td>\r\n<\/tr>\r\n
Usage<\/b><\/td>\r\nFrequent transactions and withdrawals\u00a0<\/span><\/td>\r\nSave and earn interest on a fixed rate\u00a0<\/span><\/td>\r\n<\/tr>\r\n
Transactional Limitations<\/b><\/td>\r\nUnlimited monthly transactions<\/span><\/td>\r\nRestricted monthly transactions<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n

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What are the benefits of a current account?<\/b><\/h2>\r\n

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There are numerous advantages to opening a current account, from managing your finances to making your business more credible. For example, leading fintechs now offer business loans based on the current account statements as it reflects on the cash flow of the particular business.<\/span><\/p>\r\n

Here are a few benefits of why current accounts are a must-have for businesses.<\/span><\/p>\r\n

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