Best Current Account Guide for Start-ups in India

Just like a Savings Account can be opened by anyone who wants to save funds, similarly, banks offer Current Account services that are specifically designed for businesses of all kinds.

So, if you are running a start-up or are in the growth stage, it is crucial to have a Current Account in place that enables you to carry out day-to-day transactions and manage cash flow, expenses, etc., in a much better way. On this note, let's explore some of the factors business owners should consider while choosing the best Current Account for start-ups in India.

 

Factors to Choose the Best Current Account for Start-ups

• Minimum Balance Requirements

The Average Monthly Balance (AMB) requirements can vary depending on the bank and the type of Current Account. For instance, AU Small Finance Bank offers an AU Regular Current Account targeted for producers, traders and wholesale buyers, wherein the account holders are required to maintain a minimum average monthly balance of INR 10,000.

Before deciding to open a Current Account with a bank, you must carefully compare different Current Accounts and select the one that has a decent AMB requirement.

 

• Fees & Charges

While some services are offered free of cost, banks usually charge various types of fees for other services. Therefore, it's important to understand these charges well to ensure you pick the right type of Current Account.

Some of the key charges to look at are:

1. Cash deposit fee

2. Outstation cheque collection charges

3. Demand draft charges

4. RTGS and NEFT charges

5. Chequebook issue charge

6. Cheque/ECS return charges

7. Cash doorstep pick-up/delivery charge

8. Debit Card Annual Fee

While these fees can be nominal, it's crucial to check all the service fee rates before opening your Current Account.

 

• Credit/Overdraft Facilities:

One of the key benefits of a Current Account is the Overdraft Facility on your account. This is especially important for start-ups relying on their own funds to carry out business and may face financial hardships in some situations. Pertaining to this, AU Small Finance Bank offers Dropline Overdraft facility basis AU QR/Point of Sale (POS) transactions and some pre-defined eligibility criteria.

 

• Digital Transactions:

Select a bank that allows you to carry out transactions via Mobile Banking/NetBanking. At AU Small Finance Bank, Current Account holders have the flexibility to do seamless transactions free of cost through QR code and UPI facility. The bank also allows account holders to send & receive payments through digital channels like NEFT/RTGS/IMPS available on AU 0101 App, Corporate NetBanking.

 

• Other Benefits:

Apart from the regular features, enquire about the additional benefits a bank provides in its Current Account. Let's take a look at some of them.

• Auto Sweep-In/Out Facility
• Tax Payment
• Relationship Manager
• High Cash Deposit Limits
 

Why Are Current Accounts by AU Small Finance Bank Best for Start-Ups and Small Businesses?

AU Small Finance Bank can be the best bank for Current Accounts if you own a start-up. Check out below the various types of Current Accounts the bank has to offer.

 

• Types of Current Accounts

AU Small Finance Bank offers multiple types of Current Accounts

• AU Power Current Account
• AU Basic Current Account
• AU Value Current Account
• AU Maximum Current Account
• AU Premium Current Account
• AU Vishesh Current Account
• AU Platinum Business Current Account
• AU Royale Business Program

Each account type caters to the needs of specific types of business owners.

For Instance, our AU Power Current Account is designed for small-sized retail-oriented customer. Our AU Basic, Value, Maximum, Premium Current Account packages are designed for traders, manufactures, wholesalers, and service providers. AU Vishesh Current Account is designed for medium-sized businesses. Our AU Platinum Business Current Account is designed for large sized retailers and AU Royale Business Program is for the NHI business customer.

 

We offer various useful features with our Current Accounts

• QR Code Facility

Today QR code has become an essential mode of receiving payments, especially for retailers and shop owners. You can get an AU QR code at the time of the Current Account opening process.

 

• Sweep-in and Seep-out Facility

With AU Current Account, you can opt for an Auto FD Sweep-In and Sweep-Out Facility and earn interest on the idle balance while having complete access to the funds.

 

• Debit Card

All Current Accounts from the bank come with a free Debit Card that enables you to carry out various transactions online or at Point of Sale (POS) and withdraw cash from ATMs with ease.

 

• 24*7 Banking:

Avail free access to AU 0101 App, Retail, and Corporate NetBanking for all your banking/payment needs.

 

• Extended Banking Hours

Enjoy the freedom to conduct your banking activities on your own time as AU Small Finance Bank offers extended business hours till 6 pm^. 

 

• Other Perks:

When you choose to open any type of Current Account with us, there is no limit or cap on online transactions. You can do free payments via NEFT, RTGS, IMPS, UPI and IFT. You can receive payments through our Point of Sale (POS) and Payment Gateways.

 

Key Takeaways:

• Based on the factors listed above, you can now choose the best Current Account for your start-up organization.
• Having a separate account for business is always a smart choice, as it will be much easier to track funds, manage expenses, transfer funds, conduct daily transactions, etc.

So, have you chosen your preferred Current Account yet?

Read more: What is the Difference Between Current and Savings Account?

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