Current Bank: Current bank accounts are trendy among companies, firms, public enterprises, and business people who generally have higher numbers of regular transactions with the bank. Because of these accounts’ fluidity, they don’t earn any interest. These also usually do not limit the number of trades made. The current version being a zero account is generally associated with huge transactions regularly.
Table of Contents
Advantages of Having a Current Bank
Current is not a bank but a financial technology company that helps people make wise money choices. Its account provides various benefits, including faster access to paychecks, spending insights, savings pods, and cashback rewards, all without overdraft fees or minimum balance requirements. Its CEO is Stuart Sopp. The Current was founded in June 2015 and is based in the Greater New York area. Current has raised $400M in money to date.
- Current accounts allow the handling of large volumes of receipts and payments systematically
- Under these accounts, unlimited withdrawals are allowed in line with the levied cash transaction fees.
- No restrictions apply on the deposits made into the current accounts unlocked at the bank’s home branch. Moreover, account holders can 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 consecutive payments to creditors.
- Overdraft facilities are also obtainable for current account pouches.
- The attendance of small interest earnings on account balance makes a current account more attractive for its users.
- Businesses further advantage with other benefits in free inward remittances, deposits, withdrawals at any location, multi-location transfers, etc.
- Business people can withdraw from their current accounts without any limit, topic to banking cash transaction tax if any charged by the government.
- Backing creditors of the account vessel who can access information on the account holder’s creditworthiness made an inter-bank connection.
- It facilitates the industrial growth of the country. Without its help, business people would face difficulties in running their businesses.
- Provides Internet banking and mobile banking to enable business people to carry out essential business transactions punctually and with ease.
- It also provides various other advantages
- Deposit and withdraw cash (cash) at any site.
- Multi-location funds transfer.
Disadvantages of Having a Current Bank Account
- There is an opportunity cost of losing interest rates due to low or zero interest on money in the current account.
- An operational burden attach since most package accounts offer services at additional costs.
- The complicated paperwork and fine print serve to be lengthy and confusing.
- Huge fees due to corporate business transactions.
- There is a bound on the number of funds withdrawn in a day.
Difference Between Current Account And Savings Account
There may be times when you need to make multiple payments, receipts, and other transactions, similar to traders and entrepreneurs. They need to access their accounts frequently. I prefer using a Current Account for this. But what is a Current Account, and how does it differ from a Savings Account? Here is a list to help you understand
The Difference Between Current Account and saving account
Meaning
A savings account deposit account that allows limited transactions. While a Current Account is meant for daily transactions. A savings account is most suitable for salaried employees or has a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently.
Interest
Savings accounts earn interest at around 4%, while there is no such making from a Current Account. A Current Account is a no-interest-bearing credit account.
Overdrawing
When you withdraw more money from the account than is there. Then your account says overdrawn. Banks neither offer nor allow overdraft facilities in the case of a savings account, whereas this facility is provided with a Current Account.
Minimum balance in Current Bank
The minimum balance compulsory to maintain a savings account is usually low, but it is much higher than a Current Account.
This should clarify the differences in the purpose and function of the Current Account and Savings Account. Having an HDFC Bank Savings Account offers plenty of benefits. If you need to open a Savings Account with HDFC Bank, click here to start. Know the top features of a Savings Account here.
Current Banking App And Card With Premium Features
Current is a banking app that offers many different services that make your financial life more manageable. Whether you’re a new adult, parent, or teen just starting, there are choices for you with Current. Educating your teens about money management is more enjoyable when its hands on.
But it’s unreasonable to follow your teen around all over they go so you can monitor their expenses. In its place, you can use a banking app like the one from Current. It has sufficiently parental controls to limit and screen your teen’s spending.
Conclusion
Current accounts offer up to two days faster availability of your paycheck, removal of gas station holds, and excellent money running for teens. For now, these accounts are mobile-only. So not only are there no local branches available to visit, but there is no desktop account access, or management offered either. As of writing, account convenience offers through Current’s mobile app.
The most gripping features are the faster direct deposits and gas hold removals. Quickly direct deposits mean money deposited from your paycheck should be available up to two days earlier than the average direct deposit. Also, the fee-free overdraft of up to $100 when you have a qualifying direct deposit can be helpful.
Also Read: What is a Multiple Processor? – Definition, Benefits, Differences, Uses, And More