What is current account in 2023?

Current account is an account in which large amounts of money can be deposited and large amounts of money can also be withdrawn. The accounts in which there is no limit for depositing and withdrawing money are called current accounts. Current account is for industrialists, firms and institutions etc. Current account is a type of deposit account. There is no limit for transactions in the current account. Current account is opened by the bank for those customers who do a lot of transactions with the customer bank.

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Current account in 2023?

Current account is not meant to earn interest. Nor for the purpose of saving. Current account is used to facilitate trade. No bank gives interest on current account. Current account is a type of account in which transactions go on all the time. That is why this account is called current account. This account is opened for firms, institutions and businessmen. They have to do daily money transactions from the current account to meet their business needs. Businesses that require large scale transactions to run. Those firms, institutions and businesses use current account.

In the present times, there would be hardly any person whose bank account would not be open. If there are any kind of government schemes, then the benefits received in all the government schemes are mostly transferred to the beneficiary’s account only through the bank account. These bank accounts are also opened by different types of banks. There are many types of bank accounts like savings account, current account and salary account etc. Most of the savings accounts are opened by the people.

Generally, current accounts are opened by those people, who are businessmen, such as these accounts are companies, firms, any public industry companies. Because they may have to transact anything at any time. Current account is more useful for frequent money transactions. Because no limit for transactions in current account is set by the bank. You can transact money in a current account whenever you want and as many times as you want.

Often people go to a bank to open an account. Then they do not have proper information about these accounts. There is a lot of difference between current account and savings account. Savings account is opened by a person for saving money for future and for personal transactions. Whereas current account is opened for daily money transactions to run the business. Different rules are made by the bank for both current account and savings account. Here the current account information is as follows-

  • 1. According to the need of the business, the amount deposited in the current account mostly keeps on increasing or decreasing.
  • 2. Banks provide you both online and offline services for current account.
  • 3. Current account is a bank account for people running a business. It provides ease of doing day to day business transactions.
  • 4. The money lying in the current account can be withdrawn by you at any time from the bank branch or ATM and there is no restriction for you in this. The account holder can withdraw and deposit money as many times as he wants. In the current account, you can do as many transactions as you want in a day.
  • 5. In the savings account, the bank gives you interest on the amount deposited in the account. And the bank does not give you any interest on the amount deposited in the current account. Rather, the bank takes some charge annually for running your current account. You can use Voter ID Card, Photo, Aadhaar Card, PAN Card, Driving License and Passport to open a current account.

How many types of current accounts are there in 2023?

These are of several types based on the current account features-

• Standard Current Accounts:

It is necessary to have a minimum balance in the current account as prescribed by the bank. In the current account, the facility of check books, debit cards, overdraft facility, etc. is provided by the bank. And in this account many facilities are provided by the bank like; internet banking, SMS banking, Free RTGS and NEFT transactions, etc. This is a deposit account with a non interest. Which you can open a current account to run the business.

• Single column cash book:

Single column cash book is also a type of current account. This account allows transactions on a daily basis. But in this account you do not get overdraft facility from the bank. This account is considered very good account for business. Because it also acts as a cash book for a business.

Foreign currency accounts:

This account is for those individuals, firms and organizations who do their business transactions from one country to another. This is a great account for you to transact in foreign currency for your business. Because, if your business is going on abroad also then you need to transact in foreign currency to do business abroad. This account is very useful to meet the requirement of transacting in foreign currency.

Package Current Accounts :

Many additional facilities are also provided to the account holder in the current account. As; Travel insurance, medical support, roadside assistance, etc. and many more facilities are available from banks. Many facilities are provided by the bank to the current account holders from the point of view of security.

Benefits of current account in 2023-

• In current account, the bank does not give you any interest on the amount deposited in your account.

• You can do as many transactions as you want in the current account.

• In current account any merchant can make Direct Payments through Cheques, Demand Drafts.

• The bank in which you have a current account. You can easily get loan through that bank.

• Bank provides you many facilities like overdraft, internet banking and mobile banking in current account.

• It is mandatory for you to keep the minimum balance in your current account as prescribed by the bank. If the minimum balance prescribed by the bank is not maintained in your account, the bank charges you a fee.

• You can keep as much money in the current account as you want.

The above article content is for informational purposes only. The contents are general in nature and are for informational purposes only. It is not a substitute for advice specific to your own circumstances. shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decision based on the information. Please consult your financial advisor before making any financial decisions.

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