Current Account in Bank

Current Account

It is one of the kinds of banking account from which money can be withdrawn at any time without any prior notice, as is required in the case of a Fixed Deposit Account. It is a type of deposit account maintained by individuals who carry out a significantly higher number of transactions with banks on a regular basis. These accounts include deposits, withdrawals, and contra transactions. Because of the fluidity that these accounts offer, they don’t earn any interest. Generally, current account holders do not get any interest on their balance lying in current account with the bank.

Current accounts relate to liquid deposits and it offers a broad range of customized options to aid financial dealings. Current accounts also allow making payments to creditors through the cheque facility offered by the bank. These accounts are very popular among companies, firms, public enterprises, businessmen who generally have a higher number of regular transactions with the bank. These also usually do not carry a limit on the number of transactions that can be made. The current account holder gets one important advantage of an overdraft facility.

Basic features –

  • It allows transactions beyond the scope of a savings account,
  • It is designed to facilitate frequent transactions – transfer funds, receive cheques, cash, etc.
  • It can be operated by individuals, proprietary concerns, public and private companies, associations, trusts, etc.
  • Non-maintenance of the minimum balance can attract penalty charges,
  • The prime objective of the current account is to facilitate smooth transactions for businesses,
  • Current accounts charge interests on short-term funds the account holder has borrowed from the bank.


  • 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,
  • It provides internet banking and mobile banking facilities.

Disadvantages –

  • There is an operational burden attached since most package accounts offer services at additional costs.
  • The involved paperwork and fine print serve to be lengthy and confusing.
  • Some fees due to corporate business transactions.
  • There is a limit on the number of funds that can be withdrawn in a day.