Not sure what type of business account you should go for? Find everything you need to know about the current account and business savings accounts down below in this post. Keep reading.
Running a business requires multiple sets of transactions and financial activities. There may be an influx of transactions, cheques, deposits, transfers, and more at a higher speculative rate than normal individual bank accounts. This is why having a dedicated business-based bank account is a must for any business organization.
Moreover, businesses also need to find a way to save money that can be used for their future growth plans. Banks offer different types of banking solutions to businesses based on a business’s specific requirements and needs. The two of the most prominent banking solutions is a current account and a business savings account.
While they are both banking accounts, they differ from each other. Let’s understand the key differences between the two.
Business Current Account
A business current account comes with an umbrella of services dedicated to the needs of the business. A current account provides leverage to aid the business with access to features like custom-tailored solutions and quick processing of transactions. Most importantly, they hold no limit on the transactions that can be done (both deposits and withdrawal) in the account in a day. Here are some of the other key features of a business current account:
- Dedicated Support: A current account comes with a reliable support system. Every account holder receives a dedicated business relationship manager to guide and deal with any impending issues.
- International/ Domestic Money Transfer: Some banks offer flexible business solutions with easy money transfers between international nations and domestic locations.
- Foreign Currency Account: You can maintain a current account in foreign currency like USD, Euro, and GBP with ease. This allows a business organization to circumvent the foreign currency exchange.
- Online Banking Access and Secured Card: The business current account comes with secured online banking access allowing you to gain full access to all the functionalities at your disposal. The account also offers an individual dedicated business debit card for transactions and more.
Business Savings Account
Having a business savings account gives an organization the benefits of a savings account while also allowing them to access comprehensive business solutions. The most important benefit of a savings account is the interest that can be earned on balance maintained. While a normal savings account is subject to certain restrictions and thresholds, a business savings account has a significantly higher ceiling and threshold. On top of that, businesses get to enjoy the benefit of interest income. Users can only open business savings account with an existing current account. Here are some of the features of a business savings account:
- Easy Accessibility: A business savings account gives easy access to funds to the account holder to facilitate the quick need of money whenever required. The user can easily access the account via online and offline means.
- Daily Interest Accrual: A business savings account is entitled to interest accrual. The account holder can avail daily interest accrual on their savings fund, helping them increase the funds in the account significantly.
- Minimal Balance to Start With: A business savings account doesn’t require a large sum of money to get started with. Any business current account holder can open business savings account with a minimum balance allowing them to enjoy the privilege of a savings account alongside.
A business bank account is one of the necessities of running a business. However, with plenty of business accounts around, picking the one rightful winner may not necessarily be the correct thing to do. The right type of business banking solution varies according to the demands and the needs of the business organization.