It is important to open a current account today for every type of business transaction. It is suggested that businesses or individuals make frequent bank transactions. Deposits, withdrawals, and business activities are all flexible handles with a zero balance current account.
Funds are easily withdrawn and placed at any moment in the current account. The current account holders also use this account to write cheques to creditors. In this article, we are going to tell you about the facts that are in support of that a zero-balance current account beneficial for you.
What is a zero-balance current account?
Zero current balance accounts allow the account holders to perform many transactions without storing the average monthly balance. The additional bonus associated with the current account makes it a great option for small businesses.
The current account increases liquidity and fits different commercial needs, such as delayed payment dues or working capital.
The average monthly balance is the minimum balance required by the account to maintain or operate the bank account without attracting non-maintenance charges.
For whom the zero-balance account is best?
There are some logics of the current account in favor of minimum balance maintenance, as through maintaining the minimum balance in the account. A business can get a range of flexible services with the current account.
The best thing is that the online current account opening provides you accessibility to the digital world by allowing internet banking and mobile banking services. There are no additional costs or fees associated with a current account.
A zero-balance current account is the best fit for startups or small-scale businesses, as it provides great support to them.
Document requirements and eligibility to open the current accounts
You must meet the following account requirements to open the current accounts.
- Proprietor/resident individual/company/partnership/trust/HUF
- Documents required to open a current account are business address proof, identity proof, duly filled account opening form, authorized personnel photograph
Benefits of opening the zero-balance current account
Here is the list of benefits brought by a zero-balance current account. Let us see how the current account increases the business’s financial efficiency.
Availability of funds
With the no minimum average balance maintenance pressure, the business enjoys great flexibility to use the funds during disposal. As the minimum balance requirement is small, the account can be used for a substantial amount when considered for a large-scale business to small business.
No non maintenance charges
Opening the current account that needs the maintenance of minimum balances has come with the clause of penalty charges when the balance is not maintained. It will solve the problem of charges when the fund goes down to maintain the balances because of some business emergency.
Using the current account, you can easily make specialized payment solutions to give a seamless transaction experience to their customers within the online marketplace.
The current account is like liquid deposits, which offers great alternatives to handle the financial transactions within the business.