Do the Digit Insurance

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. 

In this article, we will discuss the features and all the important points one should make before opening a current deposit account.

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.

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.

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• Cash can be withdrawn anytime, depending on the needs of the business.
• Cash can be deposited or withdrawn at any branch that is convenient for the account holder.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.

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.

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.

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.