How to pick the best Current Account for a home-run business?

17 APRIL, 2023

Running a business is no easy feat. There are a hundred things that you have to worry about, such as hiring competent employees, buying the required software, choosing the right workplace, and many more. Even if you are operating a home-run business, there is always a lot of work to be done. Now, one important aspect that you need to focus on is choosing a good Current Account. There are numerous factors that one needs to keep in mind before opening a Current account for a home-run business.

If you are confused about how to pick the most suitable Current Account for your business, go through the following pointers that can help in making this decision:

1. Speak to the bank about cash deposits and withdrawal charges

You are going to be using the Current Account for all the daily transactions of your business. Since banks usually have a fixed number of free transactions, it is important to check about cash deposit and withdrawal limits. You should also check about the charges applicable after exceeding this limit.

2. Learn whether the bank issues a Debit Card with your Current Account

There might be many situations where you need to swipe your Debit Card for financial transactions. While some banks do issue a Debit Card to a customer opening a Current Account, not every bank does. Also, make sure to check about the internet banking facility that the bank offers.

3. Check whether the Current Account has a minimum balance requirement

It is always advisable to choose a bank that offers a Current Account with a low minimum balance requirement. If you have just started out with a new business venture, it is quite understandable to not have a high amount of funds at your disposal. A Current Account with a higher minimum balance requirement could be a problem as this could block your working capital.

4. Inquire whether the Current Account has an overdraft facility

It is quite normal for a business to face expenses that have gone overboard a few times. Now, you would be in a fix if your Current Account balance was zero. This is where an overdraft facility can save the day as it allows you to withdraw from the account even if its balance is zero. This is an extended limit that banks offer known as the overdraft facility. The overdraft limit can depend on numerous factors such as the Current Account value, your credit score, repayment history, and so on.

At Kotak, we offer various solutions to suit all your Current Account requirements. Not every business owner will have the same needs, which is why we offer multiple accounts such as a Startup Regular Current Account, Startup Premium Current Account, Neo Current Account, Pro Current Account, Merchant One Current Account, Merchant One Premium Current Account and many more. Our bouquet of Current Account variants cater to all your business needs! So, feel free to get in touch with us to get yourself a Current Account for your business!