As you analyze the pros and cons of a current account, you will realize why it is important for your business to have one too. Take a quick look.
Is your business overburdened with financial transactions? Have you been fumbling with innumerable receipts and payments? Are you worried about the accuracy of daily banking transactions that businessmen, partnership firms, proprietors, public / private companies, trusts, association of persons, etc. (like you) have to deal with? Why don’t you give current accounts a serious thought? These pros and cons of current accounts that will help you take the right decision in practically no time!
Pros of Opening a Current Account
- Capable of handling large volumes of receipts and/or payments dexterously, a current account carries out all business transactions promptly and properly.
- It enables limitless withdrawals in line with the levied cash transaction fees, if any.
- No restrictions are applied on the deposits made into the current accounts opened at the bank’s home branch. Additionally, account holders may also deposit cash at other branches upon paying small fees as applicable.
- Cheques, pay-orders, or demand-drafts can be issued via a current account for making direct payments to creditors.
- It enables banks to collect receipts on behalf of customers and credit the same into the customer’s current account.
- Current account holder can enjoy overdraft (or short-term borrowing) facilities.
- The credit-worthiness information of account holders is freely available to creditors via inter-bank connections.
- With facilities like mobile-banking and internet-banking to its credit, a current account allows for easy and quick business transactions.
- From multi-location funds transfers to electronic funds transfers and more, it provides for enhanced flexibility and user experiences.
- Account holders may download their bank statements (monthly, quarterly, yearly or historical) via emails or in helpful formats such as ‘.TXT’, ‘XLS’, ‘.PDF’, etc.
- The presence of small interest earnings on account balance makes a current account all the more attractive for its users.
Cons of Opening a Current Account
- The applicable rate of interest earned on the available balance is really low.
- Most package accounts offer services at additional costs, thereby increasing the overall operational burden.
- The involved paperwork and fine print serves to be lengthy and confusing.
- Corporate business transactions usually attract huge fees.
- There is a limit on the amount of funds that can be withdrawn in a day.
The Last Word
Now that you are aware of the pros and cons of opening a current account, aim at leveraging the advantages of low interest overdrafts, competitive interest rates, and preferential deals on loans. For this purpose, and before going ahead, you may like to compare the features and benefits of current accounts offered by leading banks in India.
All the best.