What is a Current Account? How to apply for a current account?

Hello friends, we all know about banks and bank accounts. In the previous post, we talked about what a saving account is. And how to apply for it. Today we are going to talk about what the current account is. And how can we apply for a current account?

What is a Current Account?

There is a big difference between a current account and a saving account. These two accounts are completely different. Current account is used for business transactions. There is no limit on transactions in the business account. In the current account you can make countless transitions daily.

In the current account, the account holder does not even get interest on the deposit amount. This type of account facility is very useful for traders. The facility of overdraft is also provided to the account holder in the current account. The facility of withdrawing more than the amount deposited in the account is decided by the bank according to the income or cash turn over of the account holder.

Documents required to open a current account

To open a current account, you must have the following documents –

1 – PAN Card

2 – Partnership deed (for partnership Firm)

3 – Certificate of incorporation ( for companies)

4 – Cheque for account opening

5 – Address Proof & ID proof

How to Apply for a Current account?

To open a current account in any bank, the original documents mentioned above and each copy of the same will have to go to the bank by taking Xerox. Remember that Xerox A4 is done in the paper. and be attested. Go to the bank and take the current account form from the help desk. Now you have to fill out this form and submit the documents.

Banks are also providing online account opening facility for the convenience of the customer nowadays. For the online account opening process, you will have to go to the bank’s official website. And according to your original documents, you have to fill in the correct details and the documents will have to be scanned and uploaded. Apart from this, some banks also offer the facility of account opening by visiting the customer’s office or home. So that the customer is easy.

Some important facts of current account –

1- By the way, no bank interest is given on the current account. But there are some banks that offer some special current accounts to convince customers. In which he pays interest on a fixed deposit. This account is opened for business purposes.

2- To open a current account, you always have to deposit a set amount in your account. Which is more than a saving account. Most of the banks decide the amount of money for this to 5000-25000. Which you have to keep in your account all the time. And if the amount is less than the prescribed amount, the bank can also charge you a penalty according to the prescribed amount.

3- It doesn’t motivate you to save like a savings account.

4- As we have mentioned earlier, there is no restriction on the amount and number of transactions to be made in the current account. You can take as many times as you want in a day.

5- In the current account, you also offer the facility of bank overdraft. So that you can also take a loan from the bank for a short time if the proper amount is not available in your account.

So, Please tell us how the post is? Also, if there is any kind of question, comment in the comment box below.

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