A Current Account is an account opened and operated by businessmen, who have a high number of regular bank transactions. These transactions include withdrawals, deposits and contra transactions. A businessman can open this type of Account in any commercial or co-operative bank.
The account holder can withdraw or deposit funds in his or her account without giving any prior notice. One can make payments to the creditors using cheques and can deposit the cheques from the debtors as well. A Current Account holder does not get any interest on the account balance.
Features of a Current Account
Some of the main features of this account are given below.
- The Current Accounts are maintained to operate a business.
- The minimum balance required to maintain in this account is higher than that of a savings account. In case an account holder fails to maintain this minimum balance, a penalty is charged by the bank.
- The aim of a Current Account is to enable the businessmen to conveniently and smoothly conduct the business transactions.
- As long as the account holder has adequate funds in the account, there is no limitation on the amount and number of deposits and withdrawals.
- Usually, there is no interest paid by the bank on this type of account.
Most of the banks today provide the facilities of mobile and internet banking, to their Current Account holders so that they can carry their business activities smoothly.
