Current accounts are such a necessity today. In the era of entrepreneurship, one must have the basic awareness of- how to get the maximum return on investment while your funds lay well protected in your bank account.Some may hold their funds in the current and savings accounts, while some only in the savings account. The important factor is to manage funds to maximize return on investment.
Financial institutes offer ease and convenience. They don’t just offer you a cheque book and a pay-in-book. They offer you with various features which make your working and earning complement each other. Reading about them is sure to give you a brief idea:
The Benefits Of Having A Current Account For Your Business
An account dedicated for your business alone, helps you manage your money cash flow well. It is imperative in our busy lives to keep separate accounts and manage your funds systematically. Keep things simple. For example, having a separate current account helps you with a clear tax liability figure at the end of the financial year.
The current account concept has changed over the period. It is no more limited to the low to no interest account. As a current account holder, you shall reap benefits that make a difference in your financial planning.
Let’s say you could now call your current account as high interest current account. The financial institutes credit your account with an interest amount in keeping with the credit balance in your account. The time interval for doing so is not yearly or half-yearly but as you choose it to be which could be every week to every three days, for example.
A current account gives you the due interest on your balance as well as helps you save your balance from deductions such as those due to transaction fees and overdraft charges. These deductions are waved off for a stipulated time frame and being conscious of the same is advisable. The charges post the introductory period may pinch, so do remember to set a reminder in your digital calendar.
The high interest current account offers you an array of options to avail and benefit from. You must understand them well from your financial advisor in order to plan your finances and business well. Let us consider the SWIFT option. SWIFT stands for the Society of Worldwide Interbank Financial Telecommunication, and it links the banks internationally making financial transactions hassle free. A SWIFT code allows you to view your statement of accounts. It even makes real-time debit and credit transactions convenient.
Opening Your High Interest Current Account
Limited company and partnership firms need you to have a separate bank account irrespective of any account you have previously held. They call for a dedicated business account and one must have a high interest current account for the same.
As a sole proprietor or an entrepreneur, you may find it comfortable to use your savings account in continuity, butit’s a wise option to open a separate current account and reap its benefits for your business. Charitable organizations, clubs and similar are all required to open current accounts as well.
One should maintain a good credit history at all times to ensure availing the benefits offered by the financial institutes. Speak to your financial advisor. Open a current account and let your business reap its benefits while you stay content and worry free.
Author Bio :- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching on current accounts . She wishes to share information about the various features of current accounts in the context of business use through this article.