What Is a Current Account, and Who Should Open One?
When it comes to managing financial transactions for a business, choosing the right bank account is critical. Among the various types available, a current account often stands out as a go-to option for entrepreneurs and companies who require frequent, high-value transactions.
But what is a current account, and who truly needs one? In this blog, we will explore a current account in detail and answer all your questions, including:
- What is a current account?
- Who should open it and when?
- Types of current accounts
- How to apply for a current account?
What Is a Current Account?
Also known as a transaction or checking account, a current account is designed to carry out business transactions with ease. Unlike savings accounts, they do not offer interest on the money in your account.
Here are some of the key points you must remember about a bank current account:
- You can withdraw or deposit money at any time without prior notice.
- You can make payments to others by issuing cheques or using net banking.
- Proprietary account holders get access to a debit card, which is linked to the bank's current account.
- You can also set up automated payments for your utility bills, rents, and loan repayments.
- There’s an option to explore internet banking and QR code facilities.
Who Should Open a Current Account?
A current account is ideal for you if:
- You conduct frequent financial transactions.
- You are self-employed or have a small business.
- You want to maintain a clear distinction between personal and business finances.
- You prioritize liquidity and seamless access to funds.
The following entities can open a current account:
- Sole proprietors
- Partnership firms
- Societies and clubs
- Limited companies
- Hindu Undivided Family (HUF)
- Individuals who have valid KYC documents
- Executors, administrators, or liquidators
Types of Bank Current Accounts
Different banks structure their current accounts differently. However, some of the common types of current bank accounts are:
1. Basic Current Account
A standard account that lets you deposit and withdraw money and provides a debit card.
2. Savings Linked Current Account
In this case, your bank’s current account is linked to your savings account. If your funds in the current account are in excess, the extra funds directly move to your savings accounts, helping you earn interest.
3. Business Current Account
Specifically designed for businesses, it allows additional facilities, such as an overdraft facility, which comes in handy during a cash crunch.
4. Joint Current Account
As the name suggests, it is shared between two people. Typically, this kind of bank current account is used by couples or business partners.
TJSB Bank Current Account
TJSB Bank offers six different kinds of current accounts. Here’s a quick look below with their minimum balance requirements.
| Bank Current Account | Minimum Balance | Standout feature |
|---|---|---|
| Current Account | INR 3,000 for metro and INR 2,000 for non-metro. | Rupay Platinum Debit Card + QR Code facility |
| Current Elite Account | INR 10,000 for metro and INR 8,000 for non-metro. | Rupay Platinum Debit Card + QR Code facility |
| Current Silver Account | INR 50,000 for metro and INR 40,000 for non-metro. | Rupay Platinum Debit Card + Personal Accidental Insurance Cover up to Rs.2 lakh + QR Code facility |
| Current Gold Account | Rs.1,00,000 | Rupay Contactless Platinum Debit Card + Personal Accidental Insurance Cover up to Rs.2 lakhs + QR Code facility |
| Sanyukta Current Account | Zero balance | Use any UPI app to receive money in your accounts linked to TJSB’s QR code |
| Society Account | INR 10,000 for metro and INR 5,000 for non-metro. | Supported by TJSBSociety App, a smart housing society management solution. + QR Code facility |
How to Apply for a Current Account?
To apply for a current account with TJSB Bank, follow the process below:
- Visit the TJSB website.
- On the top, click on ‘Business.’
- Go to ‘Accounts’
- A drop-down list will appear
- Choose the type you want to apply for
- On the new window, scroll to the description.
- You will find a form to apply for the current account you have decided on.
- Print those forms and fill them out with all the details.
- Submit these forms to your nearest TJSB branch.
Note: Don’t forget to check the documentation you will need and carry it to the bank with you.
A TJSB employee at the bank will help you with further processing and guide you.
Conclusion
Opening a current account can prove to be a smart move for your company. They allow you to manage cash flow gaps without disrupting your operations. Additionally, the clear distinction between personal and professional finances helps you with accurate bookkeeping and tax compliance. It is a financial tool designed to support smooth, efficient, and professional financial management.
Open a current account with TJSB Bank for banking solutions tailored to your business needs. Visit your nearest branch or explore account options online to get started today.
