With no limitations on the number of transactions per day, current accounts are typically held for the purpose of business. They allow access to a range of banking services, such as receiving money, paying bills, setting up direct debits and standing instructions to make regular payments.
Opening a current account is a natural sign of financial maturity. To make the process smooth and easy, here’s all you need to know about opening your first such account.
Get Your Paperwork in Order:
It is mandatory for banks and financial institutions to verify the identity of people who are looking to open a current account. Before successfully opening the account, you need to be able to prove who you are. Typically, you would be required to submit a photo and address identification proof such as a Driver’s License and PAN Card, along with 2 of your most recent passport size photographs.
Select the Type of Account:
You still have the option to choose between a current and savings account. Much like a savings account, current accounts gives you a safe and secure place to deposit your money, provides you with a cheque book to make purchases and pay bills, and usually comes with an ATM or Debit Card to make it easier to access your money. As an added advantage, these accounts rarely have a minimum balance requirement – so you don’t run the risk of your account being shut down.
Scout for the Best Fees:
Different banks and financial institutions charge different fees for current accounts. Also, there may be certain fees attached to processing a cheque through your account. Thereby, it would be wise to check such charges before opening such an account.
Check for Online Services:
With the advent of digital platforms, today, everyone is looking out for simplicity and convenience. Online banking services provide all that and more. Having easy access to your money and the ability to manage day-to-day transactions should be at the top of your priority list when choosing between current accounts.
Ensure the Bank is Insured:
In the event of a bank failure, the Deposit Insurance and Credit Guarantee Corporation of India (DICGC) protects you against the loss of your deposits, if the bank is DICGC-insured. Such protection is usually capped at a certain amount as per the RBI guidelines. Thereby, before opening your account, you should always check if the bank is insured.
In this day and age, taking charge of your own finances is the first step in building wealth and achieving financial independence. Opening a current or business current account at the right place can help guide you in the right direction. So before you rush to the first bank you find, spend a little time doing your research and consider all the above aspects before making a prudent decision. Make sure that the bank you select meets all your banking needs.