07 AUGUST, 2023

In today’s economic structure, banking has become more inclusive as more and more people are moving to cashless transactions. For today’s business owners, a Current Account has become a necessity rather than just a matter of convenience.

Current Accounts enable entrepreneurs to monitor large volumes of transactions, utilise overdraft facilities and make unlimited deposits and withdrawals at any given time.  to their extensive offering of features, Current Accounts have gained massive popularity among entrepreneurs. These are just a few of the many advantages of Current Accounts that users can benefit from.

Operating a Current Account is simple and does not require much effort. Albeit, there are certain common mistakes that Current Account users are prone to committing.

Here’s a list of common mistakes that one should avoid while operating a Current Account.

Treating your Current Account as a Saving Account

Current Accounts are used for everyday business transactions. On the other hand, a Savings Account is meant for your short-term and long-term personal financial goals. Current Accounts are usually operated by business owners, Savings Accounts are used by individuals to park their funds.

Treating a Current Account as a Savings Account is one of the most common mistakes made by entrepreneurs. Understanding the distinction between the two accounts and treating them as per their different uses is essential. Operating a separate Savings Account while using a Current Account is akin to drawing a necessary line between business funds and personal savings.

Sticking to a lower Current Account variant

With the due course of time, as a business grows, so does the volume of transactions. Monetary transactions of enterprises are usually executed through a Current Account. However, instead of upgrading, many business owners end up holding on to the same Current Account variant they chose during the initial stage of their business.

It is important to upgrade to a higher variant of the Current Account to not only take advantage of better services but also to support their business functions with a system equipped to handle and manage its finances.

Additional Read: How can you handle your Current Account more effectively?

Skipping SMS and Email alerts

SMS and email banking alerts are a convenient way to supervise and keep a check on your monetary activity. Such notifications also help you stay updated about the various products and services that your bank has to offer. Monitoring banking transactions periodically facilitates the smooth and secure functioning of your business.

Moreover, mobile and email alerts instantly notify the account-holders about any suspicious activity observed by the bank.  Thus, it is advisable to not skip SMS and email alerts so as to stay updated on a real-time basis.

Failing to protect your account when transacting online

Your Current Account is an essential medium of your financial activity. It is important to maintain safety and security while banking. While transacting online, it is essential to be careful with your Current Account credentials. For instance, always be cautious about your Net Banking and Mobile Banking credentials as well as your debit card and credit card details. Be sure to not save your payment information on unverified websites or mobile applications.

Making a note of all these common mistakes will help you circumvent all the problems that could occur while operating a Current Account.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.