Current Accounts are essential for managing daily financial transactions, but the type of account you choose can significantly impact how you handle your finances. The two primary categories of Current Accounts are individual and non-individual accounts. You need to understand these differences to make a choice between individual vs non-individual Current Account.
Individual Current Accounts
They enable you to manage your day-to-day financial transactions with ease. These accounts typically offer features such as Debit Cards, cheque books and online banking facilities.
- Usage : Primarily used for personal financial transactions, paying bills and everyday expenses.
- Accessibility : Easier to open and manage, often requiring fewer documents and less stringent verification processes.
- Cost : Fees are usually lower, with many banks offering options with minimal or no monthly maintenance fees.
- Services : Include basic banking services like ATM access, mobile banking and rewards programs tailored for personal spending.
Non-individual Current Accounts
These are business accounts that offer specialised features to handle the complexities of business transactions.
- Usage : Designed to manage business transactions, including receiving payments, paying suppliers and handling payroll.
- Accessibility : Require more documentation and verification, such as business registration certificates, tax certificates and proofs of authorised signatories.
- Cost : Fees can be higher due to the additional services and higher transaction volumes non-individual Current Accounts accommodate.
- Services : Offer advanced banking services like multiple user access, higher transaction limits, merchant services and Business Loans.
Individual vs non-individual Current Accounts
| Features |
Individual Current Account |
Non-individual Current Account |
| Primary use |
Personal financial transactions |
Business and organisational transactions |
| Opening requirements |
Basic documents like photo, PAN and Aadhaar |
Additional documents like business registration, tax certificate, board resolution, MOA, AOA, etc. |
| Transaction charges |
Typically lower |
Generally higher due to additional services |
| Additional services |
Basic banking services, rewards programs |
Merchant services, multiple user access, Business Loans |
| Digital account opening |
Digital Current Account can be opened |
Digital Current Account can be opened for sole proprietorship firms only.
More documentation and verification required for larger firms. |
| Overdraft facility |
Usually available with limits based on personal credit |
Available with higher limits based on business needs |
Choosing the right Current Account
If you are looking to manage personal finances, an individual Current Account provides the necessary tools with simplicity and lower costs. However, if you are running a business or an organisation, a non-individual Current Account offers the advanced features and higher transaction limits required to manage your business operations efficiently.
Also Read: 5 different types of Current Accounts you must know
Conclusion
Individual and non-individual Current Accounts offer distinct benefits tailored to their respective users. Explore Axis Bank's Current Accounts that offer customisation facilities, unlimited transactions and unlimited cash withdrawals. They also offer digital Current Accounts tailored for individuals and sole proprietorship firms, featuring free internet and mobile banking services for a comprehensive and convenient banking experience.
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.
