Current account is a type of bank account which is generally opened for commercial use by individuals who are doing business and it is not for salaried class. Given below are some of the features of current account –
- There is no limit to the number of times one can deposit or withdraw funds from this account and that is the reason why business class prefer this as there are numerous bank transaction during a year if you are doing a business.
- Account holder does not receive any interest on the amount of deposit he or she has, so for example if you have kept 5000 rupees in this account for 1 year then also you will not receive any interest.
- The account-holder can avail overdraft facility under this account; however the amount that can be overdrawn is fixed. For example if you have overdraft facility and the amount fixed by bank is 50000 rupees than you can overdraw up to 50000 rupees only and not more than that.
- One has to maintain minimum balance in this account depending on the bank with which you are dealing, unlike saving account which can be opened with zero balance also.
- One can issue numerous cheques under this and one does not need to worry about the additional charges.