5 different types of Current Accounts you must know

Current Account types vary based on features, requirements, and benefits offered by them. Businessmen and professionals conduct their banking transactions using their Current Bank Accounts.

Current Accounts are dedicated bank accounts that allow for the seamless conduct of business transactions without any restriction on volumes. However, you will be astonished that most banks offer multiple types of Current Accounts. Each Current Account carries unique features that serve specific business needs. Let’s explore the different types of Current Account options that banks provide.

Different types of Current Accounts

Following are the 5 types of Current Accounts that you can open for your business or profession:

1) Standard Current Account
This is the normal Current Account variant banks provide to assist you in banking transactions. As a standard account, you will get all the features and benefits that any normal Current Account provides, like unlimited cash withdrawals, and unlimited NEFT/RTGS transactions digitally, etc. Most businesses often resort to opening standard Current Accounts with their bank to conduct their daily banking transactions. One of the limitations of standard accounts is that they might not meet the unique needs of your business.

2) Foreign Currency Current Account
As the name suggests, this Current Account variant ensures seamless foreign currency transactions. Suppose you are engaged in import or export business and have frequent dealings in foreign currencies. In that case, you should open a Foreign Currency Current Account to credit 100% of your foreign exchange earnings to your account. It seamlessly allows inward and outward remittances in foreign currency with Rupee conversion at competitive foreign exchange rates. Other functionalities and features remain the same as in a normal Current Account.

3) Startup Current Account
The startup culture is booming, and banks and financial institutions are trying to meet the unique needs of startups. Startup Current Account is specifically meant for startups in India. The innovative features of Startup Current Accounts, like low or zero minimum balance requirements, lower transaction charges, etc., make them useful, especially during their early phase. Certain banks also provide a welcome startup kit to help startups obtain certain professional services at affordable costs.

4) Merchant Current Account
Everything is getting online, including businesses. Merchant Current Account supports businesses with an online presence, whether through an e-commerce portal or operating through its own website. These accounts provide seamless connectivity, low-cost transfer options, payment gateway facilities, cash deposit and withdrawal with low charges, etc. This ensures you don’t face hurdles in starting and growing your online business.

5) Special Current Account
Apart from the above types of Current Accounts, banks also curate their own different types of Current Accounts with unique features and benefits. It ensures that they can meet the unique needs of businesses by providing them with multiple options to choose from. You should select the Current Account of your choice that meets your business needs by skimming through the features of different accounts.

Also Read: How to open a Current Account in a bank: 3 quick steps

In a nutshell

Above are some of the types of Current Accounts that banks provide. It is important to consider your unique business needs and then select the account that best serves your purpose. Apart from that, it is equally important to choose the right banking partner, as it determines your overall banking experience; thus, it is important to opt for the one that delivers the modern-day banking experience.

Axis Bank is a pioneering financial institution offering multiple Current Account options to customers. Each account comes with different account balance requirements. It also offers unlimited cash withdrawal options both within and outside the city. In the case of a Digital Current Account, you do not have to provide physical documents for verification. With multiple options available, you can choose the account that best suits your business needs.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.