Running a small business is no easy feat. From juggling inventory to managing employees, there’s always something on your plate. Amidst all this hustle, one thing you can’t afford to ignore is your business’s finances. That’s where having the right current account steps in.
Opening a Current Account is one of the essential requirements while starting a business. Although it is easy to open a current account it is difficult to identify the best bank offering Best Current Account Facility. There are a number of public and private sector banks offering a wide range of current accounts. If you are an aspiring entrepreneur and planning to open a new current account or if you are not satisfied with the services of your bank. I have something interesting for you. I am herewith details of 5 Best Current Accounts for Small businessmen in India.
Given a chance how you will select any bank account? Well, I am sure that you will shortlist and select a bank account based on the interest rate offered by the bank. You are correct up to the extent that interest rate plays a major role in selecting bank accounts. However, it is not true in the current account. You will not get any interest in your Current Account. Thus, for the selection of a current account, you need to consider various other factors rather than considering interest rates. Let’s take a look at What is current account and factors you should consider for selecting a current account and which arethe best and most popular current bank accounts in India.
Also Read – 10 Best Saving Bank Account to earn maximum interest
What is Current Account?
A current bank account is an account used to facilitate current day-to-day banking transactions. These types of accounts are for business people who perform high volume truncations on daily basis. Current account also offers the facility of overdraft this means you can withdraw money despite non-availability of balance. This facility helps business person to manage working capital requirement of business. Currents accounts do not earn any interest due to the flexibility they offer. This type of account is best suited for businessmen, proprietorship and partnership firms, companies and public enterprises.
Current Account – Features
- Current Bank Accounts are opened by business people for doing business transactions.
- It is non-interest bearing account. This means the bank will not pay any interest on the deposited amount.
- One needs to maintain minimum balance which is higher compared to saving bank account.
- The bank is entitled to charge a penalty if the minimum account balance is not maintained.
- This type of account provides overdraft facility. This means withdrawal of additional money possible based on the limit set by the bank.
- Bank charges interest on overdraft amount borrowed from the bank.
- There is no restriction on number and amount of deposit and withdrawal from a current bank account.
Current Account – Advantages
- Holding a current account improves your creditworthiness and proves that you are seriousness in conducting business transactions.
- There is no restriction on deposit made in the current account. Additional overdraft facility helps businessmen in performing a smooth operation for the business.
- This account helps businessmen to make direct payment to the creditor by issuing cheques and demand draft without any delay.
- One can get value added services such as multi-location fund transfer, free inward remittance, free pay order & free demand draft services.
- Some banks also offer personalized services and dedicated customer support.
Also Read – 5 Best Banks for Personal Loan in India
Current Account – Factors for selection
You should consider following factors while making a selection of current bank account.
Location
A first point is the location of bank and accessibility. A Bank should be nearby your business location and accessible as per your business need. It should provide internet banking, mobile banking and good ATM network/bank network as per your business requirement.
Over Draft Limit
One should also look at overdraft limit offered by bank along with the ability of a bank to arrange for an overdraft with an agreed limit.
Minimum Average Monthly Balance
Minimum Average Monthly Balance is one of the important factors for the selection. If you are starting your own business at initial stage you will be in need of money so it is better to select an account with Minimum or Zero Average Monthly Balance requirement.
Service Charges
One should also compare service charges applicable to various services such as demand draft, cheque book facility, online fund transfer, debit card etc.
Personalized Services
Ease in Banking transaction and personalized services is another factor one should look at. If cost is not concern one should select bank offering premium services for business.
5 Best Current Account for Small Business in India
1. HDFC Bank SmartUp Current Account
If you’re a startup or a young business looking to make a splash, the HDFC Bank SmartUp Current Account is a game-changer. HDFC understands the unique challenges startups face, and they’ve tailored this account with you in mind.
Features and Benefits:
- Zero Balance Requirement: For startups, cash flow can be unpredictable. This account ensures you’re not penalized for low balances.
- Free NEFT/RTGS/IMPS Transactions: Seamless fund transfers make managing payments and collections a breeze.
- Dedicated Relationship Manager: Need guidance? A dedicated manager is always on call.
- Access to Special Startup Events: Network with like-minded entrepreneurs and industry leaders.
Why It’s Great for Small Businesses: The account focuses on supporting growth, making it ideal for businesses in their early stages. Plus, HDFC’s extensive branch network means help is always nearby.
Also Read – Best Credit Card in India – Review & Comparison
2. ICICI Bank InstaBiz Current Account
Next up is ICICI Bank’s InstaBiz Current Account, a solid choice for tech-savvy entrepreneurs who love managing everything on their phones. This account is packed with features to simplify your financial life.
Features and Benefits:
- Comprehensive Digital Banking: Use the InstaBiz app to manage transactions, apply for loans, and even file GST returns.
- Instant Overdraft Facility: Need extra cash for short-term expenses? Access funds without the usual red tape.
- Customizable Account Plans: Pick a plan that matches your transaction volume and business needs.
- Integrated Payment Solutions: Accept payments through POS machines, UPI, and more.
Why It’s Great for Small Businesses: This account is designed for businesses that operate at the speed of light. With InstaBiz, you’re always in control, whether it’s payroll management or tracking receivables.
3. Axis Bank Current Account Advantage
Axis Bank’s Current Account Advantage is like a Swiss Army knife for small businesses. It’s versatile, feature-packed, and perfect for handling high transaction volumes.
Features and Benefits:
- Cash Deposit Flexibility: Enjoy higher free cash deposit limits tailored to your business size.
- Auto Sweep Facility: Earn interest on idle funds by automatically transferring surplus balances to fixed deposits.
- Priority Banking Services: Skip the queues and enjoy personalized service at Axis branches.
- Exclusive Discounts on Services: Get discounts on payment gateway solutions and more.
Why It’s Great for Small Businesses: Axis Bank offers a mix of traditional and digital features, ensuring your business gets the best of both worlds. It’s particularly useful for retail businesses that deal with significant cash transactions.
4. SBI Current Account Power Pack
State Bank of India (SBI) is a household name in India, and their Current Account Power Pack lives up to its reputation. This account is built for businesses that need reliability and wide reach.
Features and Benefits:
- Pan-India Presence: With thousands of branches, SBI is accessible no matter where your business operates.
- Cash Handling Benefits: High cash deposit and withdrawal limits make it perfect for cash-intensive businesses.
- Free Monthly Transactions: Enjoy a certain number of free NEFT/RTGS transactions every month.
- Dedicated Relationship Manager: Get expert advice tailored to your business needs.
Why It’s Great for Small Businesses: SBI’s sheer reach and reliability make it a great choice for businesses in rural and urban areas alike. Plus, the account’s cost-effective features ensure you’re not burning a hole in your pocket.
5. Kotak Mahindra Bank Pro Current Account
Kotak Mahindra Bank has carved out a niche for itself with innovative products, and the Pro Current Account is no exception. It’s a fantastic choice for businesses that value efficiency and flexibility.
Features and Benefits:
- Low Minimum Balance Requirement: Start small and scale up without worrying about high balance mandates.
- Free Digital Transactions: Say goodbye to transaction fees with free NEFT/RTGS/IMPS facilities.
- Cash Deposit Benefits: Deposit cash at multiple locations without extra charges.
- 24/7 Digital Support: Manage your account anytime, anywhere with the Kotak Net Banking and mobile app.
Why It’s Great for Small Businesses: Kotak’s Pro Current Account is perfect for businesses that prioritize flexibility and digital convenience. It’s particularly useful for service-oriented businesses.
The right current account can make a world of difference in managing your small business’s finances. Whether you’re a startup, a retail store, or a service provider, there’s an option tailored just for you. Take your pick, and set your business up for financial success!
