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How to Open a Current Deposit Account: Online and Offline

A current deposit account is an account that is basically meant for business purposes to fulfil the urgent monetary needs of a business. Also, there are a lot of advantages associated with a current deposit account.Â
In this article, we will discuss the features and all the important points one should make before opening a current deposit account.
What Does a Current Deposit Account Mean?
Usually opened by businesspersons, a current deposit account is called a demand deposit. It is possible for the account holder to withdraw or deposit money at any time, as the deposit is repayable on demand.
What Are the Features of a Current Deposit Account?
Proper knowledge about a current deposit account account helps you better decide your future plans. So, let’s go through them thoroughly:
- It bears no Interest.
- Funds are always accessible by the account holder.
- No limit is put on the number of withdrawals and depositions.
- No limit is put on the number of cheques or transfers that are made through the net banking facility.
What Are the Benefits of a Current Deposit Account?
There are numerous benefits whenever we talk about current deposit accounts:
- Cash can be withdrawn anytime, depending on the needs of the business.
- Cash can be deposited or withdrawn at any branch that is convenient for the account holder.
- The overdraft facility is easily accessible.
- Different types of current deposit accounts are there for other people or entities.
- A separate cheque balance is provided every month for the current account holders.
- SMS banking is enabled for the customer to keep you updated about the transactions.
What Are the Eligibility Criteria for Opening a Current Deposit Account?
You should fall under the following criteria (any one) to be eligible to open a regular current deposit account:
- You have to be a resident individual.
- You may belong to a Hindu undivided family.
- You may own sole proprietorship firms.
- You may own partnership firms.
- You may be a part of limited liability partnership firms.
- You may own private or public limited companies.
How to Open a Current Deposit Account?
Steps for Opening a Current Deposit Account Offline
Step 1: Visit the nearest branch of your chosen bank.
Step 2: After that, approach an employee and fill out a form for opening a current deposit account.
Step 3: Fill out the form with all the required details and submit all the necessary documents that the bank has asked for.
Step 4: Submit the form to the concerned employee, and you are good to go.
Step 5: All the details of the procedure will be sent to you in text messages on the number that you have filled in the form.
Steps for Opening a Current Deposit Account Online
Step 1: Head to the official website of your chosen bank.
Step 2: Select the tab that enlists all the services.
Step 3: Click on the tab that displays the form for opening a current deposit account.
Step 4: Fill in the form and upload all the required documents.
What Are the Risks Associated With a Current Deposit Account?
There are no such risks associated with a current savings account. However, there are some disadvantages:
- Loss on the interest due to zero interest policy.
- Operational burden because of additional costs related to package accounts.
- The paperwork and the process appear to be lengthy.
- Corporate business transactions bring in vast amounts of fees.
Comparing Current Deposits with Savings Accounts, Fixed Deposits (FD) and Recurring Deposits (RD)
Criteria |
Current Deposit Account | Savings Account | Fixed Deposit | Recurring Deposit |
Meaning | Allows daily transactions | Allows limited transactions | Does not allow withdrawals till the set period is over | Monthly deposits are made till the predetermined period |
Suitability | Traders and entrepreneurs | Salaried Employees or people having monthly income  | Risk-averse investors | For people, who cannot deposit a lumpsum amount at once |
₹Interest | No such interest rate | Bank offers interest | Varies according to the bank | Depends on the bank |
Overdrawing | The overdraft facility is accessible | No overdraft facility | Overdraft is accessible at 1-25 higher interest rates | Overdraft is available |
Minimum Balance | Higher when compared to a savings account | Usually low | The minimum balance required is ₹1,000 | A minimum of ₹100 is to be deposited monthly |
A current deposit savings is a boon for societies, trusts, businessmen, and associations. Any other kind of account can not possibly replace the liquidity provided by a current. Therefore, it happens to be highly favoured by most enterprises despite some of its presumable cons.