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2 mins Read | 3 Years Ago

Benefits of Current Account

Benefits of Current Account

Banks offer many different types of accounts. There are primarily two types of accounts that most people would be interested to know about: Savings Account (SA) and Current Account (CA). While most of us must hold a Savings Account in some form or the other, a Current Account is perhaps new to some us. We may have noticed this option at the ATM machine when instructed to choose the “Account type”. So what is a Current Account? This blog will go over all the details of a Current Account, along with the benefits and the importance of having a Current Account and help you decide whether or not to opt for a Current Account.

What is a Current Account?

A Current Account is a type of bank account that is used by businesses and has been designed to promote businesses of various sizes. This is especially true in the case where the transactions are numerous during one working day. Where a savings account is primarily aimed at an individual account holders’ savings and investments, a Current Account retains the same purpose but is aimed at promoting businesses.

Features of Current Account

A Current Account is essentially a deposit account, held with a bank to manage your business transactions. So, if you own a business, a Current Account is the right account type to go for. There are a number of advantages of a Current Account that make it distinctly unique:

  • Interest rate: 0%
  • Minimum balance requirement – average monthly / quarterly balance (the minimum balance requirements differ from one bank to another
  • Unlimited transactions per day – transfer funds online, receive and write cheques, cash transactions, and more
  • Issuance of cheque books, ATM / Debit Card
  • Online Banking Facility
    • Bank Transfers (NEFT/RTGS/IMPS)
    • Account balance and statements
    • Bill payments with standing instructions like EMI or utility payments
  • Overdraft family – up to a per-set limit for emergency use.
  • Who can open Current Account?

    To open a Current Account, you must fall under the following account type:

    • An individual or HUF (Hindu Undivided Family)
    • A company: Private or Public Ltd., Partnership firms, Proprietorships
    • Institutions, Trusts, Associations, Government Departments

    Charges on Current Accounts

    Current accounts are liable to charges as per the bank's policy. The charges are as follows:

    • Cheque bounce charge
    • Non adherence to minimum balance
    • Duplicate statement charges
    • Remittance charges – DD, RTGS/ NEFT/IMPS.

    Benefits of a Current Account

    There are a number of benefits that make a Current Account uniquely advantageous to individuals and business. These advantages are:

    • High Security – if your business requires considerable handling of cash in the form of currency, you are exposed to a number of security risks. If you deposit that cash in the bank your exposure to security risk is considerably lower
    • Business friendly – if your business requires a large number of transactions every day, a Current Account gives you unlimited transactions per day. Often times, the bank will advise you to open a Current Account in the event that a large number of transactions are being recorded in your Savings Account
    • Overdraft facility – in situations of emergency, the bank will provide an overdraft facility up to a set limit
    • Easy to operate – a Current Account gives you a number of convenient options to operate your account. These include: Cash, Cheque, ATM / Debit card, Digital banking, and more.

    Documents required to open a Current Account

    There are a number of documents required to open a Current Account. These documents must be submitted along with a signed application form at the time of opening the said account.

    • Application with photograph(s)
    • Pan Card
    • Address Proof
    • Certificate of Incorporation and MoA – Companies & Trusts
    • Partnership agreement
    • Identity and residence proof of all partners
    • Cheque from existing Savings Account for account opening
    • Contact details: Email, Mobile etc.


    If you are looking to start a business, you will find that a Current Account is a primary requirement to get started. This will help you acquire investors or apply for a business loan to fund your capital requirements. If you are looking for a Current Account to help you get started, ICICI Bank Current Accounts offer a number of features that are uniquely tailored to new businesses. Get a host of value added services and add on features that suit the needs of every business.


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