A current account is a type of bank account used by individuals and businesses that typically carry out a large volume of transactions. Since a significant amount of funds flow in and out of a current account, it is important to ensure that you only open a current account with a reliable and trustworthy bank that offers all the key features needed for seamless financial management.

Whether you want to open your first current account, or you wish to switch from an existing current account to another, there are several factors that can help you make the right decision. So, in this article, let’s look at seven key factors that you can carefully examine before choosing which current account to open for your business.

1. Fees and charges

One of the most important things to considerwhen opening a current account is the fees and charges levied by the bank. Banks charge a higher fee on current accounts, as compared to savings accounts. If you’re not careful about these fees and charges, they can quickly add up. So, make sure you look out for monthly and annual fees, including ATM fees, overdraft fees, and any other type of charges levied by the bank.

Some other types of charges to look out for may include wire transfer fees, foreign transaction fees, SMS charges, etc. Research the fees and charges for various current accounts offered by different banks, then choose one that offers the best value for the money. Read the fine print before signing up for any current account so that you aren’t surprised by any extra hidden charges or fees later.

2. Minimum balance requirements

Most banks also require you to have a minimum amount of money in your current account, known as the Average Monthly Balance (AMB). These minimum account balance requirements differ from bank to bank and the type of current account.It’s important to ensure that you maintain the required minimum balance – if your account balance drops below the minimum threshold, the bank will probably charge you some fees as a penalty.

Thus, when you are looking into getting a new current account, ensure that you get an account with low minimum balance requirements so that you don’t have to worry about getting charged for not having enough funds in your account.

The IndusInd Bank Indus Max Current Account, for instance, comes with an AMB of just ₹10,000. This gives you the flexibility to manage your funds freely according to your cash flow needs and not worry about maintaining a high AMB. It is ideal for small businesses and sole proprietors and comes with a range of other benefits, such as grouping of multiple accounts and doorstep banking services.

1. Opportunity to earn interest

While current accounts rarely offer interest on the deposited funds, some banks, such as IndusInd Bank, offer the facility of auto-sweep deposits.This allows you to earn interest on your idle funds as your current account balance above a specified threshold is automatically transferred to a fixed deposit.

So, while you compare current account options, check if the account offers facilities like auto-sweep deposits. This is an important factor to consider,especially if you plan to keep a significant sum of money for extended periods of time in your account.

1. Online andmobile banking features

In the current digitally driven world, everything is available at the click of a button. So, when you are looking to open a current account, make sure you choose a bank that offers a dedicated mobile app which lets you manage your account effectively.

A user-friendly bank website or mobile app can help you save a lot of time, simplify transactions, and give you improved control of your current account. Some key features that you should look for in the bank’s app for a current account include online funds deposits, funds transfers, pay bill services, automated payments, and alerts on transactions.

If you are looking for the best bank for a current account, consider opening an online current account with IndusInd Bank. With the IndusInd Bank’s Indus Premier Current Account, you get features and benefits like:

• Auto-sweep deposit and grouping of accounts facility
• Dynamic cash deposit limits
• Digital payment solutions to make cashless payments to vendors, channel partners, and more
• User-friendly website and app that allows you to manage your current account with ease

And the best part? You can open the current account online through a 100% digital process!

1. Bank’s branch and ATM network

While online banking services have reduced the frequency with which you have to physically visit a bank, having access to your bank’s branch nearby can be highly beneficial. In case of issues with documentation or any errors in your banking transactions, visiting the bank’s branch physically to resolve the issues in person is the safest and most reassuring option.

A lack of bank branches nearby might mean that your issues might go unresolved for a long time, so make sure the bank has a wide presence across the country, or at least in cities/towns that you frequently visit. Similarly, ensure that the bank has a strong network of ATMs across the country, so you can withdraw funds from your account at no charges.

1. Access to credit

As a businessowner, it’s crucial for you to have access to easy and quick credit at any given time. This ensures you can deal with challenges and make the most opportunities in the dynamic business environment. Hence, picking a current account that offers an overdraft facility is crucial.

An overdraft facility allows you to withdraw funds beyond your account balance up to a certain pre-approved limit. An interest rate is applicable on the funds you utilise, and you have to pay them back according to the overdraft terms. Look into the overdraft facility offered by the current accounts you are considering.

1. Customer support and brand reputation

The quality of customer service that a bank offers is also an important factor that you must consider while choosing where to open your current account. Having access to a competent customer support team will be extremely helpful in resolving situations like incorrect transactions, fraudulent activity on your account, missing funds, etc.

So, make sure you choose a bank that offers multiple avenues of customer service, such as calls, email, online chats, and in-person visits. Also, checkreviews for the banks that you are interested in seeing how swiftly they work on resolving issues for customers and which banks have the best reputation for effective customer support.

Key takeaways

Choosing the right current account for your business involves considering a few important factors like fees and charges, branch and ATM network, mobile and online banking facility, overdraft facility, and more. Ensure that you weigh these points and compare all available options in order to make an informed decision about which current account to open. Choose a current account that not only meets your immediate business needs but also aligns with your long-term goals.