4 MinsMar 22, 2021
Kavya Sharma, 25, has started her own fashion business and wants to open a Current Account for her business
transactions. So far, she has used only a savings account for all her banking transactions and is not sure
of what features to look for
in a Current Account. Let’s help her out by listing some parameters a Current Account should have.
Factors to Consider Before Opening a Current Account
1. Transaction fees: A Current Account allows unlimited transactions. However, banks
charge a fee when the number of transactions crosses a pre-set limit. The lower the fee, the better it is
for Kavya.
2. Minimum balance: Most Current Accounts require account holders to maintain a
minimum balance. As Kavya is just starting, it would be wiser for her to have a smaller minimum balance that
needs to be maintained.
3. Premium services: Some banks offer services like pick-up and deposit of cash,
access to after-hours banking, credit cards, free pay orders, demand orders, Cheque Book, Digital payments
– NEFT, RTGS, IMPS and Digital
Banking services like Retail Internet Banking/Corporate Internet Banking and Mobile Banking. These services
come at a cost. Kavya needs to figure out whether she needs such services and the costs attached to them.
4. Overdraft limit: Most banks offer Current Account holders Cash Credit and or Overdraft
facilities after they are convinced of the customer's credibility. In case Kavya faces
a cash crunch in her business, an OD can help her tide over it. Hence, she should choose a bank that can
provide her with the best rates and can offer her the OD facility as soon as possible.
5. Core services: She should also ensure that the bank she chooses is extremely
reliable when it comes to core services like internet banking, Mobile Banking, Cash Management Services, IT
Services, ERP Services, multi-location
cash deposits and fund transfers, wire transfers, bill payment services and debit card access.
[Also Read: A
new age digital savings account can change the way you bank]
6. Interest rates: While a Current Account doesn't earn any interest, Kavya can
transfer surplus funds to fixed deposits. She needs to choose a bank with the best rates that she can park
her extra funds in.
7. Size of the Bank: A bank with a larger bank network may be in a better position to
offer services in more number of locations. It would also have a larger ATM network that can be useful in
case Kavya needs to access cash.
8. Digital services: The bank should also offer Digital Current Account services online. This
will ensure that Kavya can open her account instantly and with minimal documentation. She would also be able
to carry out all subsequent
transactions in the comfort of her home or office, without having to visit the branch.
Once Kavya has chosen a bank, all she has to do is collect all the documents she needs -- ID proof, address
proof, PAN Card, business registration documents (depending on the type of the business entity) either
scanned if opening it online or
in hard copy if she's doing it in person, and get ready to fill out her application and make her initial
deposit, if required.
Axis Bank offers a range of Current Accounts designed to meet all its business customers' requirements
– from individuals, sole proprietors, Public & Private Ltd. Companies, Trusts, Societies and
Associations etc.
Disclaimer: The Source, a Mumbai-based content creation and curation firm, has
authored this article. Axis Bank does not influence the views of the author in any way. Axis Bank and
The Source 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.
