Digitization has taken the world by storm. Every sector of today’s world operates either fully or partially online. Similarly, banks have also provided digital accounts to their users to offer better accessibility and ease of use. There are several accounts that are offered by banks to benefit their customers. A current account is one such account.
There are several benefits of a current account, especially a digital one. Wondering what these benefits are? Don’t worry! We have got you covered. Below is why a digital current account is important.
What is a current account?
Before we move on to the benefits of a current account, it is essential for you to understand what actually is a current account. A current account is generally used by businesses and, thus, designed to promote businesses of all sizes. Moreover, these accounts are extremely beneficial for businesses that receive numerous transactions in a day.
Below are some of the distinguishing features of a current account:
- All current accounts are deposit accounts held to manage daily business transactions.
- Current accounts do not provide any interest.
- There are minimum balance requirements on a current account; they depend on your bank.
- Current accounts allow you the benefit of unlimited transactions per day.
- You can also issue cheque books and ATM or debit cards for the same.
Importance of a digital current account
Now that you know what a current account is, along with its features. Let’s look at some of the benefits of holding a digital current account. These benefits include:
- High security: A digital current account offers high security to its users. Online transactions are kept encrypted by several banks, which makes it a secure platform to both receive and send money. Along with security, your digital records are better at recording your transactions. Thus, you can easily access your balance and other information.
- Business-friendly: A digital current account is business-friendly. Banks understand that businesses receive several transactions per day, which is why they provide a current account in the first place. As mentioned above, a digital current account offers better records. Thus, you can easily check your transactions and keep track of them which is quite beneficial for businesses.
- Easy to operate: A digital current account is easy to operate, so you do not have to worry about getting confused because of new technology. Banks understand that digital accounts are used by people of all ages; therefore, applications that support these accounts are quite easy for you.
- More accessible: No other account offers flexibility like a digital current account. As a business, there must be times when you need to deposit, withdraw or receive money when you do not have the time to do so. In such circumstances, a digital current account can come in handy since all your tasks can be done from your phone only.
- No minimum average balance: There are several banks that allow you no minimum average balance on your digital current account, which might not be the same case for a physical account. So, that is an added benefit you get by opening a digital current account.
- Free cheque payments: You also get free cheque payments as well collections by opening a digital current account. Along with that, you are also offered cheque leaves which vary from bank to bank.
Who can open a current account?
By all the information given above, you might have guessed that a current account is primarily for business. However, a current account is not limited to only that. Any other individual can also open a current account. Below are some of the documents required for the same:
- Application with photographs
- Address proof
- Partnership agreement
- Identity and residence proof
- Cheque from an existing saving account
Digitization has been a boon to all of us because it has time and time again provided us with greater convenience, which remains unmatched. A digital current account is an example of the same. Now you know all the benefits that you can get by opening or holding a digital current account. Make sure you read the terms and conditions while opening any account, whether it be digital or physical, and you’ll always be in good hands.
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