A personal current account, also known as a demand deposit account, is a type of bank account that allows you to deposit your money in a bank for an undefined period of time and enables you to deposit and withdraw the money at any time without prior notice. The account is available to the account owner on immediate demand.
What To Expect When You Have a Current Bank Account?
- The main objective of a current bank account is convenient transactions.
- Current bank accounts can be operated to run a business as well as ones personal finances.
- For most banks, the money you keep in a current account does not earn interest.
- If the minimum balance is not maintained in a current account, the bank usually charges the account owner a penalty.
- If you borrow short-term funds such as a salary advance or take an overdraft facility, you get charged interest by the bank.
- The current account itself has no time limit, that is, it is of a continuing nature. There is no fixed period you can hold it for.
- A current account cannot cultivate for a customer a savings habit.
- The bank shall require KYC (Know your Customers) forms with personal details of the prospective account holder to be completed before opening a current account.
- A current account does not have a restriction on the number and amount of deposits and withdrawals.
Why Should You Get a Personal Current Account?
- It enables one to carry out their everyday transactions conveniently.
- It enables the current account holder to obtain an overdraft (short-term borrowing) facility. This can be beneficial during emergencies.
- It has the facilities of online banking and mobile banking to carry out important transactions fast and simply.
- It enables one to deposit and withdrawal of money from any bank location.
- A current account can facilitate a multi-location funds transfer as well as an electronic funds transfer.
- Clients can have access to periodical (monthly, quarterly or yearly) e-mail or download of bank statements.
- Most banks offer support from customer care executives.