Well, it is difficult to establish and run a startup. Especially, if you are a first time entrepreneur & starting a business for the first time. You have to make many decisions like the selection of products, place, workforce, etc.
One of the key decisions while starting a business is the selection of the best bank for opening a current account. You have to consider multiple factors before making a selection.
Recently my friend has started a Startup and he was wondering how to manage finance and where to open bank account. He has done researched and opened a current account with SBI Incube. He shared what he has considered while opening an account and asked me to share it with readers. So, here is vital information about “How to select current account for startup & small business?” along with Best Current Accounts for Startup & Small Business.
Why Current Account?
Few compelling reasons to open a current account for your startup are given below.
- You can separate your personal account with the business account using the current account.
- Maintaining the current account helps you in proving creditworthiness in the business.
- A current account enables you to send and receive a large volume of money for your business.
- There is no restriction on the deposit made in this account. You can also deposit cash amount by paying fees.
- You can enjoy an overdraft facility available with the current account.
- The current account also enables you to get the benefit of free inward remittance and multi-location transfer facility.
- Provide facilities such as internet banking, mobile banking for easing out business transactions.
Also Read – 10 Best Zero Balance Saving Account
How to select Current Account for Startup?
You should consider the following factors while making a selection of current account for your startup business.
Nearby Branch – You should consider a branch location. The branch should be nearer to your office location. This enables you for easy access and operation of your bank account.
Minimum balance required – You should also check the minimum balance requirement while opening a current account. Many banks provide a zero balance account. However, few banks impose a condition for the minimum balance requirement.
Over Draft Limit – Another thing to check before opening a current account is the applicable overdraft limit. The bank should provide an overdraft facility as per the agreed limit.
Personalized Services – Bank should be able to provide personalized service if required. You need to pay a cost in order to get personalized services.
Cash Deposit and Withdrawal Charges – As you will be managing all your finance via this account, you should check the cash deposit and withdrawal limit and charges. Every bank has kept some restriction on cash deposit and withdrawal once you cross this limit you need to pay charges.
Debit Card and Internet Banking Charges – There are additional charges associated with the current account such as debit cards, internet banking charges. You have to check it before opening the current account.
Comparison and Research – Do proper comparison and research before making a selection of a particular current bank account. You need to go through all terms and condition carefully before finalizing.
Best Current Account for Startup & Small Business
#1 ICICI iStartup Account
iStartup Account is an exclusive current account for the startups. iStartup provides a wide range of banking services to entrepreneurs. iStartup also provides industry-specific solutions for new and growing startups. This account comes with three variants gold, platinum, and silver. Key Features of the ICICI iStartup Account are given below.
- Single account for trade and banking transactions
- Quarterly average balance waiver for one year
- Specialized digital platform for export-import transactions
- Business Debit card and FD backed business credit card facility
- Auto bank reconciliation feature
- Loan against securities and overdraft facility
- Group health & personal accident coverage
- Business concierge and a digital concierge
- GST and IT return filing services
There are three types of iStartup account.
- Silver – QAB requirement – Rs.25000
- Platinum – QAB requirement – Rs.500000
- Gold – QAB requirement – 1 Lakh
For more info: Click here.
#2 SBI Incube
SBI Incube is a specialized branch created by SBI for the startup business. SBI Incube helps you in setting up startup. SBI Incbue provides current account for the proprietorship, partnership as well as company. You will get a plethora of benefits from SBI Incube such as payment service, investment & wealth advice, vendor payment service, taxation, and other business-related solutions. Key features of SBI Incube current account are given below.
- Free corporate internet banking
- Multi city cheques
- Business debit card, Insta deposit card and express collect card
- RTGS/NEFT/ standing instructions
- Corporate Salary package Accounts
- Free cash deposit up to 60 Lakh per month
- Cash pickup facility free up to 2 Lakh
- Online and mobile banking facility
- Limited advisory on investment, taxation and forex transactions
There are three variants of SBI Incube current account.
- Current Account – QAB requirement – Rs.10000
- Power Gain – QAB requirement – 1 Lakh
- Power Pack – QAB requirement – 5 Lakh
For more info: Click here.
#3 Indus Freedom Current Account
Indus Freedom current account is offered by Indusind bank. This account offers you a plethora of banking benefits. This account is suitable for small and medium businesses. Key features of Indus Freedom Current Account are given below.
- No minimum balance requirement
- Up to 4 Lakh cash deposit per month
- Free NEFT/RTGS and IMPS Facility
- Free cheque book facility
- Debit card selection facility
- Doorstep banking including cash collection
- Free cheque book issuance facility
#4 Axis Bank Startup Current Account
Axis Bank Startup current account is one of the best current accounts. This account gives you complete business solution starting from working capital finance to payment and collection services. Key features of Axis Bank Startup Account are given below.
- Zero Balance Current Account up to 2 years
- Instant telebanking support and mobile alerts
- Free home branch cash deposit up to 10 Lakh per month
- Corporate card facility
- Working capital finance Term loan and structure finance
- Investment banking solutions
- Salary account for the employees
- Payment and collection services
- Trade solution including import/export financing
#5 HDFC Bank Smartup Current Account
HDFC Bank offers two types of current accounts Startup Alpha and Startup Max Account. HDFC account offers smart financial tools & advisory services for your business. HDFC bank current account is suitable for starting up business as well as for established business. Features of HDFC Bank Startup current account are given below.
- No minimum balance up to 1 year and Rs.25000 thereafter
- Free cash deposit up to 12 times average monthly balance
- Platinum debit card with no annual fees
- Cash & Cheque pickup and cash delivery from your location
- RTGS and NEFT facility free
- Cheque with 100 leaves free for Alpha account
There are two types of HDFC current account available for the startup.
- Startup Alpha – Zero Balance for First year and Rs.25000 from second year
- Startup Max – Up to 5 Lakh Average quarterly balance
#6 Kotak Bank Neo Current Account
Kotak Bank Neo Current Account is one of the best account for small business. It will support and boost your business. Neo Current account offers multiple features to the account holders.
- Average Quarterly balance requirement of Rs.10000
- Business class gold debit card
- Facility to convert current account balance to term deposit
- Credit card and over draft facility.
- Free cash withdrawal at home branch location
- Free cash deposit up to 2 Lakh per month
- NEFT, RTGS, Mobile banking, SMS Banking facility
- Better forex rate and trade services
- Cash management services
- Point of Sales solutions
Over to you
It is a very good idea to open the current account whenever you are establishing a startup business. However, you should consider an additional burden that you end up paying while opening this account. Also, consider that interest applicable on the current account is zero whereas in a savings account you can earn interest income.