5 Types of Current Accounts You Need to Know About
Current account is a kind of deposit account solely or jointly maintained for carrying out huge value transactions daily. Such accounts are primarily opened by proprietors, partnership firms, public or private sector companies to meet their daily transactional needs. Some of the benefits of a current account include high security, business friendly, overdraft facility and easy operation. Note that like savings bank accounts, there are different types of current account you should be aware of.
Check out 5 different types of current account:
- Premium current account
As the name suggests, premium current accounts cater to a multitude of exclusive and customized features. The account is crafted to suit certain transactions as per your requirement. Note that it is suitable for you only if you intend to perform a high number of financial transactions daily.
- Standard current account
One of the important kinds of current account is the standard current account also called basic deposit account. The account is non-interest bearing that has certain specifics. There is a minimum average amount that you require to maintain every month. Moreover, the account provides standard services such as SMS banking, net banking, chequebook facility with bulk of cheques, overdraft facility, debit card for a certain amount along with no cost RTGS and NEFT transactional service.
- Packaged current account
Packaged current account is one of the kinds of current account, which falls in between standard and premium current accounts. This is better than a standard account with decent benefits along with added features like accident insurance, travel insurance etc. However, it does not provide higher benefits like premium accounts to meet your rising transactional needs in case of growing business.
- Foreign currency account
It is a current account, which is primarily designed for companies looking for assistance for the inward or outward remittance in the foreign currencies daily. Basics of the account features stay the same as any other current account.
- Single column cash book
In case you are running a company with no bank account, a simple cash account or single column cash book account can be an ideal choice for you. While the account does not offer any feature like overdraft facility, it allows you to maintain and monitor your regular transactions through 2 separate columns of credit and debit of finances.
Banks offer different types of current account keeping in consideration distinct banking requirements of the company. Thus, you must select the kind of account best matched for the nature of the transaction you wish to conduct. Make sure to go through the above-mentioned different current account types offered by various banks.