What are the importance of maintaining a Current Account(s) with a Bank and mention its various advantages ?

Current Account is non interest bearing account

Current accountss allows unlimitted withdrawals and deposits

Maximum limit of withdrawals with notices of withdrawal

Unlimited issuance of cheques books with company logos to increase the creditability of the company and advertisement promotions.

Bank Statement are provided on daily, weekly, monthy and annually basis as and when required by the companies

 to find the best current account for you – whether you want interest, an overdraft

The main objective of current account is to enable the businessmen to conduct their business transactions smoothly.

 

The advantages of current account:

1. It enables businessmen to carry out their business transactions properly and promptly.

2. The businessmen can withdraw from their current accounts without any limit, subject to banking cash transaction tax, if any levied by the government.

3. It enables the current account holder to obtain overdraft (short-term borrowing) facility.

4. It enables a bank to collect money on behalf of its customers and credits the same in their customers' current accounts.

 

Usually Businessmen and companies (sole proprietorship. partnership, private and public limited, trusts, NGOs) operates Current Account.

Current Account has no limit of withdrawals as well as deposit.

It is a non interest based account.

It has large number of daily transactions.

 

 

current account allows to innumerous withdrawals, deposits without any limitations and interest profit is not given to current account holders (corporate).  statement of account is readily available online / offline.  Most important it shows credibility of firm monthly turnover in c/a and it enable bank to check it credit worthiness to sanction loans.

Current bank account is opened by businessmen who have a higher number of regular transactions with the bank. It includes deposits, withdrawals, and contra transactions. It is also known as Demand Deposit Account. Current account can be opened in co-operative bank and commercial bank. In current account, amount can be deposited and withdrawn at any time without giving any notice. It is also suitable for making payments to creditors by using cheques. Cheques received from customers can be deposited in this account for collection.In India, current account can be opened by depositing Rs.5000 (approx. US $100) to Rs.25,000 (approx. US $500). The customers are allowed to withdraw the amount with cheques, and they usually do not get any interest. Generally, current account holders do not get any interest on their balance lying in current account with the bank.Current account holder get one important advantage of overdraft facility. Features of Current Bank Account ↓The main features of current account are as follows:-Current bank accounts are operated to run a business.It is a non-interest bearing bank account.It needs a higher minimum balance to be maintained as compared to the savings account.Penalty is charged if minimum balance is not maintained in the current account.It charges interest on the short-term funds borrowed from the bank.It is of a continuing nature as there is no fixed period to hold a current account.It does not promote saving habits with its account holders.Banker requires KYC (Know your Customers) norms to be completed before opening a current account.The main objective of current bank account is to enable the businessmen to conduct their business transactions smoothly.There is no restriction on the number and amount of deposits.There is also no restriction on the number and amount of withdrawals made, as long as the current account holder has funds in his bank account.Generally, bank does not pay any interest on current account. Nowadays, some banks do pay interest on current accounts. Advantage of Current Bank Account ↓The advantages of current account are as follows:-Current account is mainly opened for businessmen such as proprietors, partnership firms, public and private companies, trust, association of persons, etc. that has a large number of daily banking transactions, i.e. receipts and/or payments.It enables businessmen to carry out their business transactions properly and promptly.The businessmen can withdraw from their current accounts without any limit, subject to banking cash transaction tax, if any levied by the government.Home branch is that location where one opens his bank account. There are no restrictions on deposits made in the current account opened in a home branch of a bank. 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.It helps businessmen to make a direct payment to their creditors by issuing cheques, demand-drafts or pay-orders, etc.It enables a bank to collect money on behalf of its customers and credits the same in their customers' current accounts.It enables the current account holder to obtain overdraft (short-term borrowing) facility.The creditors of the account holder can get credit-worthiness information of the account holder through inter-bank connection.It facilitates the industrial progress of the country. Without its help, businessmen would face difficulties in running their businesses.It has the facilities of Internet-banking and mobile-banking to carry out important business transactions with ease and quickly.It also provides various other advantages (benefits) such as:Deposit and withdrawal of money (cash) at any location.Multi-location funds transfer,Electronic funds transfer,Periodical (monthly, quarterly or yearly) e-mail or download of bank statements in various formats like '.XLS', '.TXT', '.PDF', etc.Support from customer care executives.

A business current account has several benefits including allowing the business to move money in and out of the account in real time. It allows the company to pay for things it buys and also to pay in income from things it sells.

AGREE WITH ALL ANSWERS  

Current Accounts (C/As) can be opened by individuals, partnership firms, private and public limited companies.

No interest is payable on credit balances in Current Accounts.

Cheque books are issued to all Current Account holders and all withdrawals should be made only through issue of cheques. 

 

 

A checking or transaction account is often referred to as a current bank account. No business should be without a current account. Without a current account, your business lacks credibility and may not be taken seriously by other businesses with whom you do business with.

 

I agree with most of answers provided