NEXT
A current account or a checking account is offered by Banks to individuals and companies who are interested in keeping their money with the Bank and intends to withdrew these funds without providing any intimation to the Bank.
Cheque book along with debit card are the basis features provided for such accounts. These accounts are generally opened by salaried individuals and also by companies for their staff. A minimum balance has to be maintained in these accounts else a minimum account maintenance fee will be levied to customers. Details of prices and charges are generally published by the Bank and is also available on their website for the customer's to visit and review these charges.
Their is a misconception among some people that a liability product or an investment product has to be taken if one intends to open the Bank account but it is not true. People may misguide customers to make easy commission on the sale of a liability product or an investment product.
Another feature of this account is that no interest is paid by the Bank on the funds kept in this account as funds are available for the customer to utilize without any prior intimation. Also these funds are used by Banks to fund short term loans wherein money will be borrowed by another financial institution for a period of 6-8 hours and money will be returned back along with the agreed rate of interest.
Current accounts are good for customers who want access to their funds anytime and also wants them to be secure. Always choose a nationalized or a government Bank to deposit large sums of money as small banks may become bankrupt over a period of time for lack of funds to continue their operations.
Remittances can be sent and received in these type of accounts and all transactions along with opening of this account is subject to Bank's approval and the Bank may wish to decline any of the request without providing any reason what so ever.
0 comments:
Post a Comment