Current Account Types and their Cash Deposit Limit

Find out information regarding various current accounts as well as the amount of cash that can be deposited into them. This becomes a guide to assist one to select the right account depending on the nature of the business.

Are you a business owner looking to manage your regular transactions more efficiently? Here’s where a current account may come in handy and help with multiple daily transactions. However, before zeroing in on any account, being aware of the distinct kinds available and their cash deposit limits is essential for smooth financial operations. Let’s explore this in detail.

What is a current account?

A current account is a kind of deposit account for individuals and businesses that need to perform a high number of daily transactions. Unlike savings bank accounts, current accounts do not have restrictions on the number of transactions. They offer distinct features such as free chequebooks, overdraft facilities, and online banking. However, they typically do not offer interest on the balance.

Types of current accounts

There are several current account types available, each catering to distinct business needs. Here are four distinct kinds:

• Standard current account
• Premium current account
• Packaged current account
• Corporate current account

#1. Standard current account

The standard current account is best for start-ups and small businesses. It offers basic features such as internet banking, free chequebooks, overdraft facilities, and internet banking. The cash deposit limit is usually on the lower side, making it suitable for businesses with moderate transactions.

An example of a standard current account is the Indus Tarakki Account by IndusInd Bank. It is specifically designed for traders, retailers, and merchants to enjoy smooth digital collections. Here are its key benefits and features:

This current account is perfect for enterprises that manage a lot of cash and digital transactions, offering a balance of convenience and flexibility.

#2. Premium current account

Premium current accounts are tailored for businesses with higher transaction needs. They offer additional benefits such as higher cash deposit limits of usually up to ₹10 lakh to ₹20 lakh per month, auto-sweep deposits, grouping of accounts, and doorstep banking service. Such bank accounts cater to mid-to-large enterprises requiring more extensive banking features and services.

#3. Packaged current account

Packaged current accounts come with a bundle of features and services, including preferential loan rates, insurance, and exclusive access to business lounges. These accounts are designed for businesses looking for added benefits. The limit of cash depositsin this variant is higher than standard accounts, making them ideal for businesses with considerable transaction volumes.

#4. Corporate current account

Corporate current accounts are designed for huge corporations with considerable transaction volumes. Such bank accounts offer features such as bulk payment processing, higher overdraft limits, free small/medium lockers for a specific duration, family banking, complimentary golf access, and a dedicated relationship management team. The cash deposit limit is generally extremely high, making them ideal for large-scale businesses with considerable cash handling needs.

To sum up

Selecting the right current account for your business depends on your cash management needs, transaction volumes, and additional services required. Standard and premium current accounts cater to small to mid-sized businesses, while corporate and packaged current accounts offer more extensive features for bigger businesses. By understanding the distinct kinds of current accounts and their cash deposit limits, you can make an informed decision that best matches your financial operations.

So, do not procrastinate, open a current account online today as per your business needs and leverage the range of benefits offered.