No doubt, current accounts are in great demand among firms, companies, businessmen, and public enterprises, who need to deal with a great number of transactions with the bank every day.
The axis bank current account includes withdrawals, deposits, and contra transactions. This type of account is also known as the demand deposit account. As many people prefer to open their accounts, it is important to analyze whether it will be beneficial or not.
Keep reading the article to know whether the current account is beneficial for you or not.
What is a current account?
The current account is the popular bank account with banks among businesses, firms, companies, etc. It is used to make the number of deposits, withdrawals, and contra transactions frequently.
You can easily open a current account in any commercial bank. A zero-balance current account is associated with the number of transactions regularly.
The current account offers the account holder fluidity, meaning no interest is earned over the deposits. The best thing is that there is no limit on transactions if you have a current account.
Benefits of current account
Online open Current account is the best option for people, especially for businesses, companies, firms, etc., because of the following benefits.
- If you have a current account, you can easily make unlimited withdrawals with the applicable cash transaction fees.
- Pay orders, cheques, and demand drafts are issued through the current account to make direct payments.
- Once you open your current account, you can make an unlimited number of deposits.
- The overdraft facilities have also come with the current account
- The concepts of earning a small interest on the deposited money in a current account make it a more attractive option among users
- The current account ensures the industrial progress of the nation. With the current account, the business can handle several hassle-free transactions
- Current account holders can easily deposit and withdraw their money from any location
- Current accounts provide the option of internet banking and mobile banking to account holders to carry the business transactions.
Drawbacks of current account
Along with the benefits, there are a few drawbacks also of opening a current account. Let us be aware of the drawbacks too.
- Operational burdens are associated with the services provided by the current account at additional costs.
- There is some cost levied on losing the interest rates because of zero or low interest on money in the current account.
- The fine print and paperwork involved in current account opening make the confusing and lengthy process.
- As the current account is used to make corporate business transactions, huge fees are levied.
Conclusion
Due to the range of benefits, the current account is the most preferred and demanded option in a bank account for all companies, businesses, corporate sectors, etc. You should open your current account if you are involved in a business that needs to handle several transactions every day.