5 Things You Must Know About Current Accounts

Banks in India operate different types of accounts for their diverse clientele. One such popular account is the current account. A current account is a kind of deposit account, which can be maintained only by a bank. A current account is meant specifically for individuals who carry out business and have to deal with huge transactions with their bank regularly. It is a liquid deposit, offering varied, personalized options for the account holder to help with their finances.

Compared to a savings account, a current account provides higher monthly transaction limits on cash deposits or withdrawals, both within and outside city limits. However, a current account needs a higher minimum balance to be maintained compared to a savings account. Being a liquid account, a current account does not provide interest and is always available to the account holder.  Also, banks provide a larger volume cheque facility for their customers to make payments via their current accounts.

With banks getting digitized, one can easily open current online account in a hassle-free manner.

5 Things You Must Know About Current Accounts

1.   Interest not charged

A key feature of opening a current account is that there is no interest charged on current accounts. The amount in a current account is a liquid asset, hence made available to the account holder, as per their needs. As such, banks do not charge interest on the current account, making it a very convenient funding option for business owners.

2.   Personalized Current Accounts

Banks in India offer personalized current accounts based on the type of business, enterprise, or account holder. For instance, the limit allowed for cash deposits/withdrawals would vary for sole proprietors, trusts, societies, etc. Also, current account holders get a monthly allowance of cheques at no extra cost, aiding hassle-free vendor payments. Demand drafts also come with no additional charges.

3.   No cap on the number of daily transactions

A current account does not limit the number of transactions that can be carried out in a day. As such, this anytime withdrawal facility enables businesses to meet their cash needs efficiently and conveniently.  Various types of regular transactions like transfer of funds, receipt of cheques, etc., can be carried out by the current account holder without any restriction. 

4.   Overdraft Facility

Though there is a minimum balance to be maintained in your current account, still one gets the benefit of an overdraft facility in a current account. This overdraft facility is for a temporary period to make good any shortfall of funds, thus aiding businesses to manage their business operations without interruptions.

5.   Deposit of Cash/cheque at different bank branches available

When one opens a current account, the account holder benefits from depositing cash/cheques at the different branches of the bank. This is a convenient option for businesses that require collecting payments from small-time customers. 

With the advent of technology, there is a provision of phone/SMS/internet banking, ensuring a seamless banking experience for the current account holder.


Online current accounts have now made it easy for customers to get their business transactions done instantly from any location, without the need to visit a bank branch. For instance, Kotak Bank offers various types of current accounts to suit different user requirements. Make sure to keep the above-mentioned points in mind about current accounts.