Every business, well-established or startup, needs a Current Account to handle daily transactions. If you have launched a startup business, then it becomes imperative for you to acknowledge and understand the value of managing a Current Account right from the start.
If you are an individual who has recently launched a startup, then you might not know what is meant by a Current Account. So, a Current Account is nothing but a Deposit Account that you set up with your bank. This account is meant for businesses and individuals who need a considerably higher amount of transactions daily.
But one of the most important features of a Current Account is that it is associated with liquid deposits. Current Accounts offer a ton of personalised selections to help you conduct your transactions and aid your overall business.
The Current Account empowers individuals to make payments through a greater capacity of cheque facilities offered by banks. As the Current Accounts offer high fluidity, they do not offer interest. Your money that’s deposited in a Current Account will not yield any interest.
As compared to Savings Accounts, Current Accounts have higher limits on the minimum balance but don’t come with any limitations on the number of transactions made in a day. Nowadays, banks offer a range of Current Accounts to business owners depending on their banking needs and requirements. So if you are a startup owner, then make sure you choose the Current Account that’s the best fit for your needs.
Let’s discover features of the Current Account that would be beneficial for your startup.
1) Isolation of personal finances and business finances:
If you are a startup owner who has just begun the entrepreneurial journey, then this is a huge feature and habit for you. It is advised to have two different accounts for personal and business expenditures.
For personal expenses and savings, you can have a Savings Account. For your business-related expenses and transactions, you can have a Current Account. With a Current Account, isolation of these accounts becomes easy. You get to chart your financial planning in a much more systematic order and have a clear-cut view of your transactions – both personal and business-related without clutter or confusion.
2) Increase Business Competence:
Current Accounts make you look professional. As a startup, you need people to take you seriously, and a Current Account adds additional value to your professionalism. It improves the value of your business as all the cheques, DDs, pay orders, etc., will be in the name of your business, making you look professional.
3) Establish Creditworthiness For Your Startup:
If you plan on expanding your business with the help of loans from banks or creditors, then your Current Account will help you show your finances of business holdings. If your Current Account is free from discrepancies, then your credit score will be great and help you establish creditworthiness for your startup.
4) Avail Overdraft Facility:
Even if you need to maintain a minimum balance in your Current Account, you can avail of an Overdraft (OD) facility for a certain term to cover up any shortage of funds.
5) Effortless Banking:
As Current Accounts come with no limitations on daily transactions, these accounts can be your one-stop destination for all your business needs. From instant transfer of funds through NEFT and RTGS to online transactions and multi-city money transfer facilities, you can enjoy all the services with ease. Also, there are no additional charges for cheques and demand drafts.