Current Account – a Must for Businessmen

Current account caters the instant monetary needs of the business class as they need frequent bank transactions. With this account the user gets a Free ATM cum Debit Card and can access to the widest network of ATMs across the country to withdraw cash, inquire about the balance, etc. Moreover, the ATM card with the current account enables the person to shop at a large number of merchant establishments in India. The account holder can also avail the International ATM-cum-Debit Card which can be used within as well as outside India, at a nominal charge transact at your convenience, saving time and cost through SBI Internet Banking.

With the help of current account,you can also withdraw cash from Maestro endorsed ATMs of multiple banks under bilateral sharing, at a nominal fee. You can also monitor and control your funds through the Internet Banking or/ and through Passbook/ statement of account facility. Alternatively you have the facility to access your account by downloading the online transaction package on your computer.

Transaction with the current account is at ease. You can make unlimited number of payments and can make payments by giving the concerned bank a standing instruction. With this account, you can remit funds from any part of the country to your account. Upcountry Cheque Collection facility is also associated with the current account. Apart from these there are other benefits too. Overdraft facility associated with the current account enables you to draw over your balance at a minimal rate of interest. Transfer of accounts between the concerned bank’s network of branches can be done without any charge. Nomination Facility is also available with the current account.

Current account interest rate have structured to help you save time and money while you manage your business. Many banks in the Indian banking system now offer offer you a range of current account options, each packed with services, value-added features and conveniences to help you avail the maximum benefit. In a life full of hectic schedules and time constraints, the value of time is being increasingly felt and that’s why current accounts are now associated with online banking. To save your precious time some banks have also introduced doorstep banking where you can now receive or deposit cash and cheques at your office or home.

Flexi Current Account offered by some of the banks is the answer to your changing banking needs during peak seasons. In this account, your cash deposit and Anywhere transaction limits are a multiple of the balance you maintain in your Current account. Current account interest rate in case of flexi accounts swings in favour of the customer. During the peak business seasons, the account holder gets the benefit of higher transaction limits due to the higher average balances maintained in his account. And in lean seasons, the account holder does not need to bother about maintaining huge balances to enjoy high transaction limits, which he anyway may not need. This account requires you to maintain a minimum average monthly balance (AMB) of just Rs. 75,000.

The Initial deposit required for current accounts varies from banks to banks. And, on this aspect current account interest rate. Higher is the initial deposit, higher is the interest on the balance of the account and lower is the interest charged on overdrafts. When the initial deposit is low, current account interest rate is lower on savings and higher on the overdraft amount. The current account is ideal for carrying out day-to-day business transactions. Unlike saving accounts they offer lower rate of interest but you can access your account any time, anywhere, pay using payable at par cheques or deposit cheque at any branch of the concerned bank.

Free 2.5 GB Pro account from Zooomr – Roland in Vancouver (180)


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Choosing Checking Accounts With the Lowest Bank Fees

Banks make most of their money through convenience fees charged to customers. When you are in the market for a new checking account or want to move to a new bank, there are a number of things you should take into consideration before selecting the bank to open your checking account with.

Insurance

It used to be very rare for a bank to fail. The current economy has increased bank failures though, and when looking to open any bank account, it’s important to take the possibility of a bank failure into consideration. The Federal Deposit Insurance Corp insures deposits from eligible banks and financial institutions in the US up to 0,000 per depositor. Make sure your bank is covered by the FDIC before you open an account with them.

Choosing a Checking Account

Most everyone relies on a checking account in order to pay their bills and hang on to their money before it’s needed for a purchase or expense. You have a number of checking accounts from which to choose, from free accounts (no maintenance fees) that don’t require a minimum balance; to accounts that offer interest if you maintain a certain minimum balance; to money market deposit accounts with higher interest paid but higher minimums required and a limit to the number of transactions you can make in any given month. There are specialty accounts for groups of people, too – like student checking, or senior citizen accounts.

Compare your local bank checking account options with online checking account options to find an account that will charge you the least amount of fees and provide the most interest for how you are likely to use the account.

Avoiding Overdraft Fees

People who live paycheck to paycheck often end up paying hundreds of dollars each year in the form of bank overdraft fees. At an average of per occurrence, overdrafts are costly fees that you should do everything in your power to avoid! What happens when your account falls short is the bank will honor the largest debit or check that’s outstanding first, which means each of your smaller checks will result in individual, overdraft fees. Instead of bouncing a single check, you end up paying an NSF (non sufficient fund) on each of the individual transactions.

While many banks will cover the non sufficient funds for you under “overdraft protection” all that means is your money is paid out to the person or business you wrote the check for or used your debit card for; but that the bank will charge you for that privilege. See if you can get standard overdraft protection, and link your checking account to a savings account. If your account is overdrawn they can tap into your savings account for the funds instead of charging you for the NSF.

Some banks hold your deposits for 10 business days for larger or nonlocal checks. Standard wait time for a regular check deposit can be 2-4 business days. This can make it difficult – if you are cutting things close, always find out when a deposit will come available so you know when you can use the money from the deposit.

Understand Your Debit Card

Almost all checking accounts include a debit card, but this is another way for banks to make money off their account holders. Sometimes if you use the debit card as debit at the retailer, you pay a fee – but if you chose credit instead at the same retailer, it wouldn’t cost you anything more than the cost of whatever you’re buying.

Using your debit card in an ATM machine owned by another bank will result in paying fees to the other bank, and your own bank as well. Paying or to take out in cash is never a good idea, but you may not even realize it since the ATM only announces the fees of their OWN bank (not what your bank will add at the end of the month).

Using a debit card to reserve travel accommodations or purchase gas sometimes puts a hold on your account that’s more than what you actually spend. It can take a week or two for the hold to be lifted, and meanwhile you don’t have access to any of those funds which can result in overdrafts if you’re not aware.

Checking Account Vs HELOC


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