A current account is a business type of bank account that allows you to make deposits and withdrawals without any notice. Many banks provide different current accounts with other features so that you can find the best ones.
Keep reading the post to learn the features and steps to open a current account online.
Overview of current account
A business that wants to conduct daily bank transactions must open a current account. This account is used for counter-transactions and deposit withdrawals. This type of account is known as a demand deposit account.
Current accounts are best fit to make payments to creditors using cheques from customers deposited in the account. Remember that current accounts do not allow the account holders to earn interest on balances.
Current account features
Everyone needs to have a bank account today. Here are the features that indicate the importance of the current account.
- Unlike a savings account, a current account permits transactions beyond allowing my savings account.
- Some banks provide interest on current accounts.
- With current accounts, the account holder can quickly get an overdraft facility at certain limits.
- The minimum balance needed for a current account is higher than the savings account.
- Receiving cheques, cash, and transferring funds are only some of the frequent transactions that facilitate.
- Private companies, public companies, associations, trusts, etc., can easily open their current accounts.
- Transactions cannot be made in a day if you have current open accounts.
- Penalties are not imposed for minimum balance non-maintenance needs.
- Current account should follow KYC guidelines, as same as a savings account.
- There is not more than one current account for one business only.
- The business can quickly smooth its transactions through the current account.
- The account holder needs to pay interest on short-term borrowed funds from the bank.
How to open a current account online
If you also have a business or want to open your current account. Here are the steps required to follow to open the current account online.
- Visit the official website of the bank and get the account opening form.
- Fill in the account details, personal details, and other essential sections with the required information.
- Take a printout of your application form filled by you.
- Visit the branch of the bank and submit the filled form and submit all necessary documents with it
Moreover, if you are interested in opening the current account offline, you must visit the bank branch.
Which documents do you need to submit to open a current account?
If you want to open your current account, here are the documents you need to submit.
- Agreement of partnership firm between partners
- Use savings account cheques.
- Address proof
- PAN card
Opening the current account is easy by following the above steps. Once you understand the features, you will know the current account’s importance, making it a highly needed account.