If you are a business owner or a professional in India, having a Current Account can be highly beneficial for managing your finances. A Current Account allows you to carry out day-to-day banking transactions smoothly and efficiently. However, it’s important to know the charges associated with a Current Account before applying for one online or through a physical branch.
What are the charges associated with a Current Account?
Minimum balance requirement:
Most banks require you to maintain a minimum balance in your Current Account. Failure to maintain this balance may result in penalties or charges. The minimum balance requirement can vary based on the type of Current Account and the bank you choose. Understanding the specific minimum balance requirement and any associated charges is essential to avoid unnecessary fees.
Bulk transaction charges:
If your business involves frequent high-volume transactions, you may encounter bulk transaction charges. These charges are typically imposed when the number of transactions or the amount involved exceeds a certain threshold set by the bank. Understanding these limits and associated charges is essential to manage your business finances efficiently.
Collection and bounced cheque charges:
Current Accounts often involve the issuance and processing of checks. In case of a bounced or dishonored check due to insufficient funds or any other reason, banks may levy charges for the inconvenience caused. Additionally, if you deposit checks for collection, there might be charges for the collection process. Familiarise yourself with the specific charges related to dishonored checks and check collection to avoid any surprises.
Debit card charges:
When you open a Current Account, you may be issued a debit card for convenient access to your funds. While many banks provide a debit card as part of their account offering, some banks may charge an annual fee for the card or impose charges for certain transactions, such as ATM withdrawals or online purchases. Check with your bank regarding the debit card charges associated with your Current Account.
Charges for additional facilities:
Banks often offer additional facilities such as cheque books, debit cards, internet banking, and SMS alerts with their Current Accounts. While these services provide added convenience, they may come with additional charges. Before opting for these facilities, inquire about the associated charges and evaluate whether they align with your banking needs and preferences.
Miscellaneous charges:
Apart from the charges mentioned above, some miscellaneous charges may be associated with a Current Account. These charges can include charges for account opening, account closure, duplicate account statements, and more. Before opening a Current Account, you must check with your bank about the miscellaneous charges.
To wrap up
Opening a Current Account provides numerous benefits for managing your day-to-day transactions. Still, it’s essential to consider the associated charges. Make sure to choose the type of Current Account that best suits your business needs, as each type comes with its own features and charges. By being aware of the various charges associated with a Current Account and choosing the right type of account, you can effectively manage your business finances and avoid any unnecessary fees.
