What is Current Account?


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

Documents Required:

  • 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.

Author: sapna panth

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