Top 7 Key Factors to Look Before Opening a Current Account

The Current Account has a lot to do with how conveniently you manage business finances. Read this post for 7 factors you should consider before opening a new Current Account.

Successfully managing the finances of your business is no small feat. From  managing day to day business transactions, customer billing , salaries, utility bills and vendors payments, there are various financial transactions you need to process regularly. And a Current Account is what you need to manage all of these in a convenient and hassle-free manner.

In other words, the Current Account you choose significantly impacts the everyday finances of your business. Thus, it is essential to choose a Current Account after much thought and consideration. Here are 7 factors that deserve your attention when you open Current Account online or offline-

1. Account Opening Convenience

The bank should have a convenient and straightforward account opening process with minimal documentation and nowadays, various banks offer digital onboarding platforms which are more convenient for current account opening. Online account opening will be an added advantage as it makes the entire process quick and effortless. You can also open a Digital Current Account if you like to manage all your banking and non-banking transactions online; and now various API based validations checks are available where in entity and individual details can be checked digitally from govt data base.

As for the documentation, you’ll mostly be required to submit-

• Address proof
• PAN Card
• Entity proof
• Identity proof
• Address proof of Entity
• Business ownership proof with official valid document of authorized signatories
• Passport size photograph

2. Minimum Balance

Current Accounts generally require the account holder to maintain a minimum balance. For enhanced flexibility regarding how you manage your business finances, it’d be wise to choose an account with lower minimum balance requirements.Or depending on your monthly cash and non- cash transactions, payment solutions and business turnover

3. Features and Benefits

Current Accounts also come with a host of additional features and benefits. Some of the benefits you should watch out for when you open a Current Account are-

• Zero annual charge Debit Card
• Offers on POS and QR
• Extended offline banking hours
• Doorstep banking facility for cheque pickup and delivery

4. Overdraft Facility

Business owners often need to make an urgent payment but lack the funds in the Current Account. The overdraft facility can come in handy in such situations. It is a type of short-term loan that allows the account holder to withdraw funds from their Current Accounts even when the balance is low.

5. Transaction Fee

Some Current Accounts only allow a specific number of free transactions every month. Transactions beyond the limit attract a fee. So, ensure you select an account that offers free transactions or has a generous free transaction limit.

6. Bank Size , account types and industry specific requirements

Larger banks generally offer various types of Current Accounts to ensure every business owner can choose an account that matches their requirements, each industry has specific business related banking requirements which can be provided by banks either through customisation of accounts, add-on services like cash management services, merchant solutions and asset products  . Moreover, their extensive branch and ATM network also enhance your banking experience.

7. Digital Infrastructure

Most account holders now prefer online banking. So, the bank you choose for your Current Account should have a digital-first approach to offer on-the-go banking flexibility. Moreover, the bank should also offer POS, QR, and UPI facilities to help you stay abreast with the latest payment methods.

If you're looking for a Current Account, select one after thoroughly analysing the options based on the above factors. If you'd like to make the selection easier, you can consider opening your Current Account at AU Small Finance Bank.

The largest SFB in the country offers multiple types of Current Accounts with extensive features and benefits to streamline business finances and offer a rewarding banking experience. Learn more about AU Current Accounts and apply for your preferred account.