A current account also known as financial account is a type of deposit account maintained by individuals who carry out significantly higher number of transactions with banks on a regular basis. It is created by the bank on request of the applicant and is made available for frequent or immediate access.
Power words: Non-interest bearing bank account.
Features of Current Account:
- A current account allows transactions beyond the scope of a savings account
- Compared to savings account, a current account requires a higher minimum balance
- It is designed to facilitate frequent transactions – transfer funds, receive cheques , cash, etc.
Benefits of a Current Account:
- Allows for prompt business transactions
- No limit on withdrawals
- No limit on deposits in the home branch
- Enables businessmen to make direct payments using cheques , demand drafts, or pay orders
- Provides overdraft facility
- Provides internet banking and mobile banking facilities
- One Identity proof from : PAN Card, Passport, Voter Identity Card, Driving License, Aadhaar Card.
- One Address proof from : Passport, Voter Identity Card, Driving License, Aadhaar Card.
- Recent Color Photograph.
- PAN/Form 49 A along with Form 60 if applied for PAN.
Is current account taxable?
Current Account is a zero-interest account, there is no tax on Current Account. A direct tax for individuals is income tax. The Government prescribes the rate at which the income should be taxed.
How many days does it take to open a current account?
It usually takes 1-2 working days to open a current account. You will also require to provide your Aadhaar card details when opening a bank account.