Quick Answer: What Are The Advantages Of Opening A Current Account?

Can I convert my savings account to current account?

It is not possible to convert your savings account to a current account as both the accounts are different in nature and also have distinct features and benefits.

While a saving account is meant for personal use and thus can be opened with basic documents for KYC..

What are the benefits of opening a current account?

Benefits of a Current AccountAllows for prompt business transactions.No limit on withdrawals.No limit on deposits in the home branch.Enables businessmen to make direct payments using cheques, demand drafts, or pay orders.Provides overdraft facility.Provides internet banking and mobile banking facilities.

What are the advantages and disadvantages of current account?

Disadvantages of having a Current Account There is an opportunity cost of losing on the interest rates due to low or zero interest on money in current account. There is an operational burden attached since most package accounts offer services at additional costs.

How much money should you keep in your current account?

The right amount of money to keep in a checking account. One helpful rule of thumb is to keep one to two months’ worth of spending in your checking account and send the rest to savings accounts or retirement accounts.

Can I use current account for personal use?

However, a Current Account can be used for other entities as well. In general, sole proprietors, freelancers and other people who work on their own tend to use their personal Savings Bank account for business transactions. However, this deprives them of the benefits associated with a Current Account.

Can I withdraw money from current account?

The businessmen can withdraw from their current accounts without any limit, subject to banking cash transaction tax, if any levied by the government. … However, the current account holder can deposit the cash from any other branch of a bank other than the home branch by paying a nominal charge as applicable.

Is GST mandatory for current account?

Bank account details can be added later vide amendment of non-core field. Therefore, Current Account is not compulsory for GST Registration. And, you can use either saving account or Current account to register for GST in India.

Which is best for current account?

Best Banks for Current AccountBanksMaximum Cash Deposit AllowedHDFC BankUp to ₹2 lakhs per month (for regular current account)ICICI BankUp to ₹1.8 crores per monthAxis BankUp to ₹2 lakhs per month (for regular current account)Bank of BarodaUp to ₹1 lakhs per month4 more rows