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, knowing the charges associated with a Current Account before applying for one online or through a physical branch is important.
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 minimum balance requirement and associated costs is essential to avoid unnecessary fees.
Bulk transaction charges:
You may encounter bulk transaction charges if your business involves frequent high-volume transactions. These charges are typically imposed when the number of transactions or the amount involved exceeds a certain threshold the bank sets. Understanding these limits and associated costs 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 tasks related to dishonored statements and check collection to avoid surprises.
Debit card charges:
When you open a Current Account, you may be issued a debit card to access your funds conveniently. While many banks provide a debit card as part of their account offering, some banks may charge an annual fee 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 checkbooks, 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, please inquire about the associated costs and evaluate whether they align with your banking needs and preferences.
Miscellaneous charges:
Apart from the abovementioned charges, some miscellaneous expenses may be associated with a Current Account. These charges can include account opening, closure, and duplicate account statements. Before opening a Current Account, you must check with your bank about the miscellaneous expenses.
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 style has features and controls. By being aware of the various costs associated with a Current Account and choosing the right account, you can effectively manage your business finances and avoid unnecessary fees.
