Looking for a Best Bank For Current Account in India? Great! You have reached the right place.
Whether you are a businessman, entrepreneur, professional, association, society or trust there are a number of transactions that you undertake on a day-to-day basis such as running daily operations, placing purchase orders, sale of goods, marketing and logistics expenses, maintenance and administration expenses, salary of employees etc.
Bearing this in mind, setting up a current account is one of the most important tasks you simply cannot skip to conduct your business smoothly.
While a savings account is the best choice for personal use, a current account is widely used to serve the needs of business people. With many current account in the market, you can select the best current account bank in India for you based on some factors.
It provides ease of operations, flexibility, no constraint on the number of transactions, separate from personal banking and liquidity.
To compensate for this on-demand transaction, the current account is a no interest-bearing deposit account. Read on to know more about the procedure of opening a current account, its advantages and disadvantages, and the best current account bank which offers Current Account with maximum benefits.
Also Read: Best Crypto Wallet In India, Best Aif In India & Best Crypto Exchanges in India
In this guide, we ranked and reviewed the 7 best current account in India, along with our top 3 choices, so that you can pick the best one for you.
Want to jump straight to my top picks? My favorite's among best bank to open current account are ICICI Bank and HDFC Bank.
Top 10 best current account in india
Overview Of Current Account
A current account is a type of deposit account maintained by individuals who generally have a higher number of regular transactions with the bank. The current account includes deposits, withdrawals, and contra transactions.
This account is also known as Demand Deposit Account. It requires a higher minimum balance but also provides an easy option to avail overdraft facility.
What is meant by a Current Account with a bank?
A current account is a deposit count opened with a bank by business owners for their daily business use.
Such accounts do not earn any interest and generally don’t have a limit on the number of transactions that can be undertaken, thereby providing a high level of fluidity to account holders.
Such liquidity can be availed in terms of cheque issuance, deposits, withdrawals, and D.D. issuance etc. Apart from this, these accounts also provide other services, at times with customised features to meet your specific business requirements.
Documents Required to Open a Current Account
You need to submit the following documents at your bank to open a current account:
- PAN card
- Address proof
- Companies or trusts must submit a certificate of incorporation and memorandum of association.
- Partnership agreement in case of partnership firms
- ID and residence proof of all partners
- A colour photograph of the applicant(s)
- Cheque from existing savings account for account opening
- Companies should provide address of communication
Features of a Current Bank Account
A current account is one of the primary requirements of a business. These days banks provide various offers, benefits and customised services for opening a current account. Mentioned below are some of the basic features of a current bank account -
- The current account permits frequent transactions with no restrictions on the number of transactions in a day.
- Compared to a savings account, the minimum balance limit is higher in the current account.
- Current Accounts attract charges as per Bank's policy. Charges can be levied for - Non maintenance of minimum balance, Cheque
- bounce charge, Duplicate statement charges, Remittance charges – DD, RTGS/ NEFT/IMPS, etc.
- While saving accounts are operated by individuals, current accounts are majorly operated by business owners.
- A single business cannot have multiple current accounts.
- Traditionally current accounts didn't earn any interest. However, nowadays some banks do offer interest on current accounts as well.
Check Our List to Know which bank is best for current account
1. State Bank of India
The largest state-owned public sector banking company in India, SBI provides fast, reliable and hassle-free banking services.
The bank provides 12 types of current accounts to suit the needs of everyone in society.
Features
SBI Bank Current Account Products -
Given below is a detailed overview of the 12 SBI Bank Current Account products. These current accounts are based on the profiles of businessmen, entrepreneurs, traders, entities, and other applicants -
- Regular Current Account
Features of SBI Regular Current Account | Details |
Suitable for | Professionals, traders, small businessmen, and relevant others who require all the Current account services at an affordable cost. |
Minimum Average Balance | INR 5,000 |
Non-maintenance charges for MAB | Per month Rs. 500 + GST |
Cash Deposit in Home Branch |
|
Cash Deposit in Non-Home Branch | Rs. 1 lakh per day is the maximum limit of cash deposit at a non-home branch |
Cash Withdrawal |
|
SBI GOLD Current Account
Features of SBI Gold Current Account | Details |
Suitable for | Traders, professionals, premium businessmen, and relevant others who wish to diversify and expand their operations as well as handle bulk cash transactions |
Minimum Average Balance (MAB) | INR 1,00,000 |
Non-maintenance charges for MAB | Per month Rs. 2,000 + GST |
Cash Deposit in Home Branch |
|
Cash Deposit in Non-Home Branch | Rs. 2 lakhs per day is the maximum limit for cash deposit at a non-home branch |
Cash Withdrawal |
|
SBI DIAMOND Current Account
Features of SBI Gold Current Account | Details |
Suitable for | Top professionals, elite businessmen, large traders, who handle bulk cash transactions, as well as process a large number of collections and payment transactions |
Minimum Average Balance (MAB) | INR 5,00,000 |
Non-maintenance charges for MAB |
|
Cash Deposit in Home Branch |
|
Cash Deposit in Non-Home Branch | Rs. 2 lakhs per day is the maximum limit for cash deposit at a non-home branch |
Cash Withdrawal |
|
- SBI PLATINUM Current Account
Features of SBI Platinum Current Account | Details |
Suitable for | For superior services and products for large traders, top professionals, elite businessmen, who have a large number of collections and payment transactions |
Minimum Average Balance (MAB) | INR 10,00,000 |
Non-maintenance charges for MAB |
|
Cash Deposit in Home Branch | Unlimited cash deposit |
Cash Deposit in Non-Home Branch | Rs. 2 lakhs per day is the maximum limit for cash deposit at non-home branch |
- SBI Power POS Current Account
Features of SBI Power POS Current Account | Details |
Suitable for | Customers who avail of POS (Point of Sale) facility. Also provides Overdraft facility |
Minimum Average Balance (MAB) | INR 5,000 |
Non-maintenance charges for MAB | Rs. 500 + GST |
Loan Eligibility | You are eligible to get a loan of up to 25% of the last 6 months transaction |
Loan Amount | The minimum and maximum loan amount is Rs. 25,000 and Rs. 5 lakhs |
- SBI Surbhi Current Account
Features of SBI Surbhi Current Account | Details |
Suitable for | Institutions, Corporate, Trusts. Comes with sweep and reverse sweep option to CLTD (Corporate Liquid Term Deposits) |
Minimum Average Balance (MAB) | INR 10,000 |
Threshold Limit |
|
Interest Rate on Reverse Sweep | The interest will be as per the rate card for the tenure which is decided at the time of opening of account. |
Cash Deposit at Non-Home Branch |
|
Cash Withdrawal at Non-Home Branch |
|
- SBI Power Jyoti Pul Pre-uploaded Current Account
Features of SBI Power Pul Pre-uploaded Jyoti Current Account | Details |
Suitable for | Schools, universities, government bodies, Business owners, and other institutions that want to collect fines/fees/funds, etc. . The collections are also possible through internet banking with pre-uploaded data. |
Monthly Average Balance (MAB) | INR 50,000 |
Non-maintenance charges for MAB | Rs. 1,000 + GST |
Transaction Fee | Rs. 60 + GST |
- SBI Master Current Account
Features of SBI Master Current Account | Details |
Minimum Average Balance (MAB) | INR 1,00,000 |
Non-maintenance charges for MAB | Rs. 2,000 + GST |
Cash Deposit in Home Branch | Rs.10 lakh per month (Inclusive of cash deposited in CDM, Recycler, GCC, Home & Non-Home Branches) Card rates as under will be applicable for deposit above free limits. ₹0.75 per ₹1,000/- + GST Minimum ₹50/- + GST, Maximum ₹20,000/- + GST |
Cash Deposit | Rs. 2 lakhs per day is the maximum limit for cash deposit at non-home branch |
- SBI Smart Current Account
Features of SBI Smart Current Account | Details |
Minimum Average Balance (MAB) | INR 25,000 |
Non-maintenance charges for MAB | Rs. 500 + GST |
Cash Deposit | Rs. 2 lakhs per day is the maximum limit for cash deposit at non-home branch |
2. HDFC Bank
Founded in 1994, HDFC is the third largest company in India.
With 5,779 branches and 17,238 ATM's in 2,956 cities/towns the bank is present everywhere and is hence easily available to customers.
It provides over 10 plus categories of current account to meet every kind of requirement from every kind of organisation.
Features
HDFC Bank Current Account Products
A brief description of a few widely popular current account products from HDFC Bank is given below-
- Max Advantage Current Account
Features of HDFC Max Advantage Current Account | Details |
Suitable for | Traders, Manufacturers, Distributors, EXIM (export/import) customers who are involved in large businesses with turnover of ₹ 5 crores and above |
Average Quarterly Balance (AQB) |
|
Combined Cash Deposit (Anywhere in India) | 12 times of Current Month AMB (upper cap of Rs. 75 Crs.) |
Non-maintenance charges for AQB |
|
Cash Withdrawal (Non-Home Branch) | 12 times of current month AMB (Upper cap of ₹ 75 crores per month) |
- Ascent Current Account
Features of HDFC Ascent Current Account | Details |
Suitable for | Traders, Manufacturers, Distributors, EXIM (export/import) customers who are involved in small - medium businesses with turnover ranging from ₹ 50 lakhs upto ₹ 5 crores |
Average Quarterly Balance (AQB) |
|
Combined Cash Deposit (Anywhere in India) | 10 times of current account AMB ( Upper cap of Rs. 50 Cr ) |
Non-maintenance charges for AQB | ₹ 3,000/- per quarter (across all locations) |
Cash Withdrawal (Non-Home Branch) | 10 times of current account AMB ( Upper cap of Rs. 50 Cr ) |
- Activ Current Account
Features of HDFC Activ Current Account | Details |
Suitable for | Merchants/traders, service providers & dukaandars, with local transactions and requirement of ME/MPOS/MEAPP, having turnover upto ₹ 50 lakhs |
Average Quarterly Balance (AQB) | ₹ 10,000/- (across all locations) |
Combined Cash Deposit (Anywhere in India) | 10 times of current account AMB ( Upper cap of Rs. 50 Cr per month ) |
Non-maintenance charges for AQB | ₹ 3,000/- per quarter (across all locations) |
Cash Withdrawal (Non-Home Branch) | 10 times of current account AMB ( Upper cap of Rs. 50 Cr er month) |
- Plus Current Account
Features of HDFC Plus Current Account | Details |
Suitable for | Traders, Manufacturers, Distributors, EXIM (export/import) customers who are involved in small - medium businesses, with turnover ranging from ₹ 1 crore upto ₹ 5 crores. |
Average Quarterly Balance (AQB) | ₹ 1,00,000/- (across all locations) |
Non-maintenance charges for AQB |
|
Cash Deposits |
|
Cash Withdrawal | Unlimited free Cash Withdrawal at Home Branch Free cash withdrawal of upto ₹ 1 lakh per day at non home Branch |
- Premium Current Account
Features of HDFC Premium Current Account | Details |
Suitable for | Traders/ Service Providers and small business owners, with turnover ranging from ₹ 50 lakhs to ₹ 1 crore |
Average Quarterly Balance (AQB) | ₹ 25,000/- (across all locations) |
Non-maintenance charges for AQB |
|
Cash Deposits |
|
Cash Withdrawal | Unlimited free Cash Withdrawal at Home Branch Free cash withdrawal at non-home branch upto ₹ 25,000 per day |
- Regular Current Account
Features of HDFC Regular Current Account | Details |
Suitable for | Merchants/Traders, Service Providers & Dukaandars with local transactions (with / without requirement of ME/MPOS/MEAPP), with turnover less than ₹ 50 Lakhs. (For Non-Metro locations only) |
Average Quarterly Balance (AQB) | ₹ 10,000/- (across all locations) |
Non-maintenance charges for AQB |
|
Cash Deposits | Free Cash Deposits up to ₹ 2 lakhs or 25 transactions per month at Home location Free local or intercity cheque collection and payments across all HDFC Bank locations. |
- SmartUp For Start-ups
Features of HDFC SmartUp For Start-ups Current Account | Details |
Suitable for | Proprietorship, Partnerships, LLP, Private limited companies and Limited companies whose date of incorporation is not more than 10 years |
HDFC BANK SmartUp Alpha Current Account | Zero AQB requirement for first six months; post 6 Months Rs.25,000/-
Cash Deposit free up to 12 times the Current Month Average Monthly Balance (AMB) or 25 transactions which ever is breached first (subject to maximum Rs. 1 Cr per month) |
HDFC BANK SmartUp Growth Current Account | AQB - Rs. 50,000
Free monthly cash deposits up to 10 times the current month AMB (subject to maximum Rs. 50 Cr per month) |
HDFC BANK SmartUp Max Current Account |
Free monthly cash deposits up to 12 times the current month Average Monthly Balance (AMB) or Higher of Rs. 60 lacs or 60 transactions whichever is breached first (subject to maximum Rs. 2 Cr) |
A brief description of a few widely popular current account products from HDFC Bank is given below-
- Max Advantage Current Account
Features of HDFC Max Advantage Current Account | Details |
Suitable for | Traders, Manufacturers, Distributors, EXIM (export/import) customers who are involved in large businesses with turnover of ₹ 5 crores and above |
Average Quarterly Balance (AQB) |
|
Combined Cash Deposit (Anywhere in India) | 12 times of Current Month AMB (upper cap of Rs. 75 Crs.) |
Non-maintenance charges for AQB |
|
Cash Withdrawal (Non-Home Branch) | 12 times of current month AMB (Upper cap of ₹ 75 crores per month) |
- Ascent Current Account
Features of HDFC Ascent Current Account | Details |
Suitable for | Traders, Manufacturers, Distributors, EXIM (export/import) customers who are involved in small - medium businesses with turnover ranging from ₹ 50 lakhs upto ₹ 5 crores |
Average Quarterly Balance (AQB) |
|
Combined Cash Deposit (Anywhere in India) | 10 times of current account AMB ( Upper cap of Rs. 50 Cr ) |
Non-maintenance charges for AQB | ₹ 3,000/- per quarter (across all locations) |
Cash Withdrawal (Non-Home Branch) | 10 times of current account AMB ( Upper cap of Rs. 50 Cr ) |
- Activ Current Account
Features of HDFC Activ Current Account | Details |
Suitable for | Merchants/traders, service providers & dukaandars, with local transactions and requirement of ME/MPOS/MEAPP, having turnover upto ₹ 50 lakhs |
Average Quarterly Balance (AQB) | ₹ 10,000/- (across all locations) |
Combined Cash Deposit (Anywhere in India) | 10 times of current account AMB ( Upper cap of Rs. 50 Cr per month ) |
Non-maintenance charges for AQB | ₹ 3,000/- per quarter (across all locations) |
Cash Withdrawal (Non-Home Branch) | 10 times of current account AMB ( Upper cap of Rs. 50 Cr er month) |
- Plus Current Account
Features of HDFC Plus Current Account | Details |
Suitable for | Traders, Manufacturers, Distributors, EXIM (export/import) customers who are involved in small - medium businesses, with turnover ranging from ₹ 1 crore upto ₹ 5 crores. |
Average Quarterly Balance (AQB) | ₹ 1,00,000/- (across all locations) |
Non-maintenance charges for AQB |
|
Cash Deposits |
|
Cash Withdrawal | Unlimited free Cash Withdrawal at Home Branch Free cash withdrawal of upto ₹ 1 lakh per day at non home Branch |
- Premium Current Account
Features of HDFC Premium Current Account | Details |
Suitable for | Traders/ Service Providers and small business owners, with turnover ranging from ₹ 50 lakhs to ₹ 1 crore |
Average Quarterly Balance (AQB) | ₹ 25,000/- (across all locations) |
Non-maintenance charges for AQB | ₹ 1,800 per quarter |
Cash Deposits |
|
Cash Withdrawal | Unlimited free Cash Withdrawal at Home Branch Free cash withdrawal at non-home branch upto ₹ 25,000 per day |
- Regular Current Account
Features of HDFC Regular Current Account | Details |
Suitable for | Merchants/Traders, Service Providers & Dukaandars with local transactions (with / without requirement of ME/MPOS/MEAPP), with turnover less than ₹ 50 Lakhs. (For Non-Metro locations only) |
Average Quarterly Balance (AQB) | ₹ 10,000/- (across all locations) |
Non-maintenance charges for AQB | ₹ 1,500 per quarter |
Cash Deposits | Free Cash Deposits up to ₹ 2 lakhs or 25 transactions per month at Home location Free local or intercity cheque collection and payments across all HDFC Bank locations. |
- SmartUp For Start-ups
Features of HDFC SmartUp For Start-ups Current Account | Details |
Suitable for | Proprietorship, Partnerships, LLP, Private limited companies and Limited companies whose date of incorporation is not more than 10 years |
HDFC BANK SmartUp Alpha Current Account | Zero AQB requirement for first six months; post 6 Months Rs.25,000/-
Cash Deposit free up to 12 times the Current Month Average Monthly Balance (AMB) or 25 transactions which ever is breached first (subject to maximum Rs. 1 Cr per month) |
HDFC BANK SmartUp Growth Current Account | AQB - Rs. 50,000
Free monthly cash deposits up to 10 times the current month AMB (subject to maximum Rs. 50 Cr per month) |
HDFC BANK SmartUp Max Current Account | AQB - Rs. 5,00,000/- Free monthly cash deposits up to 12 times the current month Average Monthly Balance (AMB) or Higher of Rs. 60 lacs or 60 transactions whichever is breached first (subject to maximum Rs. 2 Cr) |
3. ICICI Bank
Established in 1994, ICICI bank is a leading & one of the best banks for current account in India.
The bank provides comprehensive banking solutions that cater to every businesses banking needs at every stage.
Features
Regular Current Accounts
The following current accounts are suitable for small retailers, traders, self-employed professionals and others with an annual turnover of less than 2 Cr.
- Smart Business Account
Features of ICICI Regular Smart Business Current Account | Details |
MAB | Rs, 25,000 |
Cash deposit | Free cash deposit of upto 12 times the maintained MAB anywhere in the country |
- Smart Business Account – Gold
Features of ICICI Regular Smart Business Gold Current Account | Details |
MAB | Rs. 1,00,000 |
Cash deposit | Free cash deposit of up to 12 times the maintained MAB or Rs. 1.8 Cr, whichever is lower |
- Roaming Current Account Gold
Features of ICICI Roaming Current Account Gold | Details |
MAB | Rs. 1,00,000 |
Cash deposit | Free cash deposit upto Rs. 10 Lacs per month within the city of account opening |
- Roaming Current Account Premium
Features of ICICI Roaming Current Account Premium | Details |
MAB | Rs. 50,000 |
Cash deposit | Free cash deposit upto Rs. 5 Lacs per month within the city of account opening |
- Roaming Current Account Classic
Features of ICICI Roaming Current Account Classic | Details |
MAB | Rs. 25,000 |
Cash deposit | Free cash deposit upto Rs. 2.5 Lacs per month within the city of account opening |
- Roaming Current Account Standard
Features of ICICI Roaming Current Account Standard | Details |
MAB | Rs. 10,000 |
Cash deposit | Free cash deposit upto Rs. 1 Lacs per month within the city of account opening |
4. Axis Bank
Axis Bank is one of the first new generation private sector banks to have begun operations in 1994.
The bank provides almost 10+ current account products to suit the needs of your business.
Features
Axis Bank Current Account Products
Value Best current accounts - Normal current account, Business advantage current account, Business Select current account, Business Classic current account, Business Privilege current account, Channel One current account, and Club 50 current account.
5. Canara Bank
Features
Canara Bank Current Account Products
The bank has two types of current accounts - Regular current account and Canara privilege current account .
6. Yes Bank
Features
YES Bank Current Account Variants
The bank provides following types of business current accounts - Edge Business, Prime Business, Exclusive Business, Tradebiz and Xtra Gain.
7. Punjab National Bank
Current account variants
PNB Mybiz Plus Current Account, PNB Mybiz Account, PNB Merchant Current Account, and PNB Escrow/Rera Account Scheme.
Advantages of having a Current Account
- Unlimited Transactions
There is no constraint on the number of transactions done under the current account. The account holder has the freedom to transact any number of times at whatever frequency you need to. - To Set Apart Personal and Business Aspects of Fiscal Matters
It is always recommended to keep your personal and business bank accounts separate. This helps in tracking cash inflows easily and also gives the business owner a superior way of planning and managing their budgets.
This can also come handy for tax filing and claiming deductions. - Bank Guarantee
If used responsibly, having a current account can help build credit history. With a good credit score, you can also get easy loans. At times, banks also provide Guarantee basis the experience it has had with the current account holder. - Makes payment and access to cash easily
With a current account you can make regular payments from your account via direct debits or standing orders. Even during unforeseen circumstances or an urgent requirement, the bank will allow you to obtain short-term borrowings or bank overdrafts. - Current account makes your operations easy
With a high level of liquidity, a current account helps you manage your business transaction seamlessly. Further, banks provide several lucrative offers, benefits and customised services to retain the account holders.
Disadvantages of having a Current Account
- No Interest on Deposits
Unlike a savings account, no interest is earned on deposits made in the current account. This makes the opportunity cost of depositing money in the current account high. - High Operational costs
Service charges in a current account are exceptionally high. The penalty charges levied on Non maintenance of minimum balance, Cheque bounce charge, Duplicate statement charges, etc., can further add on to the costs. - Confusing and Lengthy paperwork
In comparison to savings accounts, the paperwork involved in current accounts is comparatively lengthy and confusing.
Bottom Line
If you are looking to start a business, you will find that a Current Account is a primary requirement to get started. This will help you acquire investors or apply for a business loan to fund your capital requirements.
If you are looking for a Current Account to help you get started, ICICI Bank Current Accounts offer a number of features that are uniquely tailored to new businesses. Get a host of value added services and add on features that suit the needs of every business.
frequently asked question
1. Which bank has zero balance current?
A zero balance current account allows you to carry out transactions without the obligation of maintaining a Monthly Average Balance. Given below is a list of few banks that permit zero balance current account -
Bank | Zero Balance Current Account Type |
ICICI Bank | Shubhaarambh Current Account New Startup Current Account Chartered Accountant Current Account |
Axis Bank | Local Current Account |
Kotak Mahindra Bank | Start up Premium |
2. Is a current account free?
No, a current account is not free. There are several charges and penalties associated with it such as Non maintenance of minimum balance charge, Cheque bounce charge, Duplicate statement charges, Remittance charges – DD, RTGS/ NEFT/IMPS, etc.
3. What can I do with a current account?
A current account can be a boon for your business. You can undergo prompt business transactions without the limit on the number of transactions to be undertaken in a day.
In times of emergency or any urgent requirement banks also provide short-term borrowings or overdraft facility to current account holders.
4. Is a current account taxable?
As opposed to a savings account, a current account is a zero- interest account and hence is not liable for taxation. You can save any amount of money into your bank account and there would be no tax.
Here are my best picks:
