It is extremely essential to have a current account with a well-known and a reputed bank, if you are running any sort of commercial activity. It is a very important account because your daily transactions would take place from this current account. All your regular bills and payments would be settled through this account. It is possible for two people or partners to have a joint current account, if they are sharing the expenses.
Majorly, businesses and corporate houses have current accounts for their business transactions. Most of the times, the banks provide a debit card to the current account holder for withdrawals from ATM. The debit card can also be used to settle payments if you do not have cash.
Many banks offer several additional benefits such as travel insurance along with the current account. However these benefits come for a fee. The fees are automatically deducted from the account. Apart from the current account, banks also offer savings accounts. There are many differences and similarities between current account and savings accounts. Let us look at them.
Apart from the above mentioned similarities and differences, it is possible to overdraw from both the types of accounts in case of emergencies. However, you can overdraw from your account for a fee. It is best to use your bank account balance wisely and you must monitor your accounts regularly.