When running a business, streamlining transactions and having access to sufficient cash flow is crucial. For this reason, having the right banking services is absolutely essential – one that can support the various financial transactions and operations your business undertakes. That’s why current accounts, which focus exclusively on business needs, are essential to consider.
Designed specifically to handle the extra cash flow needs of businesses, current accounts allow a higher number of transaction limits, more frequent withdrawals, deposits, and additional exclusive features. And today, banks offer different current accounts to meet preferences of different customers – from standard current accounts for quick access to funds to premium accounts with added benefits.
Given its importance for people in business, associations, professionals, societies and trusts, here are 5 different types of current account you must be aware of.
1. Standard Current Account
Also known as a basic deposit account, it is a non-interest-bearing account with minimal requirements like a specified minimum balance or monthly average balance. With features such as an overdraft, net banking, SMS banking, chequebook facility, and free inward remittances, this type of account offers all you need for your basic banking services.
2. Premium Current Account
A premium current account is particularly useful for those who make frequent and higher-value transactions. It also provides certain exclusive options that enable you, as a premium customer, to access special benefits on banking services such as dedicated relationship manager, preferential loan rates, and round-the-clock customer support service.
3. Packaged Current Account
A packaged current account provides an ideal option for those looking for value-added services in addition to the benefits offered by a standard current account. These can range from roadside assistance and medical support to travel and accidental insurance – offering convenience and security. However, it is not as comprehensive as the premium account in terms of providing tailored solutions to suit the individual customer’s needs.
4. Foreign Currency Account
A foreign currency account can be useful if you conduct a significant share of your transactions in foreign currencies. This type of current account has all the features and functionality of a regular current account, plus it offers the ability to manage multiple transactions from one place and reduced exchange fees when dealing with different currencies. However, before deciding on such an account, compare all current accounts thoroughly to ensure that it aligns with your banking needs and expectations.
5. Single Column Cash Book
Keeping a record of the daily transactions of your business is a crucial but often time-consuming task. The single column cashbook account provides an easy solution to this problem. This type of account allows you to track your current finances in one place, with short and concise entries split into separate debit and credit columns. Although it does not provide an overdraft facility, it allows you to view and track your day-to-day transactions easily.
The different types of current account offer different advantages and services. So, carefully read all the terms and conditions before finalising an account, and do your due diligence on any bank you choose. Paying attention to charges, guidelines and maintenance plans is also essential when looking for an ideal current account provider. Remember that each business is unique, so choosing a current account that best matches your allowances and objectives is important.