Earn up to 7.5% on your Current Account.

 

The challenges for banks isn't becoming "digital" -- it is providing value that is perceived to be in line with the cost--or better yet, providing value that consumers are comfortable paying for_Ron Shevlin 

 Modernization is incomplete without digitalization after this pandemic everyone is rushing from physical transactions to digital but for that, you need a bank account. Now the question arises 

v Which type of bank account you must open?

v In which bank so that you can evade from irrelevant charges that bank charge on your monthly transaction? 

v Which type of account will give you maximum interest on your deposited fund?

But before that, you need to understand What is the basic difference between Saving Account and Current Account?

• In saving account, you get limited transaction. i.e. You can withdraw the amount 4 or 6 times only in a month. Above it, the bank will charge some amount on it. Whereas the Current account allows you multiple transactions in a month.
• Current Account also provides you Over Draft facility i.e., if you ever sign a check of 2.5 Lakh and you have 1.5 Lakh in your account, the check won’t bounce because the bank provides you overdraft of 1 lakh and your cheque will be cleared. This type of loan which does not require any guarantor in overdraft, is also termed as an Unsecured Loan. (P.S: - this type of facility is only given to those account holders whose monthly transactions are good)
• Current account also got flaw like current account do not give any Interest whereas Saving account does give you Interest.

For business purpose do not prefer saving account because transactions are limited and if crosses, the bank can put a flag on it which means suspicious and you have to provide all details about transaction to the bank. Therefore, always use the Current account for business as it allows multiple transactions. 

What are the points that must take care to evade from irrelevant charges?

Let’s began with Saving Account. 

1.     How much interest does a bank provide? 

2.      How much low balance can be maintained? - low balance maintenance i.e., how much minimum balance you can maintain in your account so that in case of emergence if you have to withdraw the amount then your bank won’t charge you. 

3.      Compare all the terms, conditions, and services: - Do not go for the account which bank manager or any employee of bank suggests or force you to open because there is a hidden profit of bank but not of yours. So always ask for more details and choose wisely for an account other than the employee suggested to you.

4.      Don’t run for maximum features: - for maximum features, you need to maintain a high amount as low minimum balance which is not easy for many of us.

5.      Auto Sweep Facility: - Today almost 90% of banks provide auto sweep facility. There are chances that the bank won’t tell you about this feature because no bank wants to give you profit at the cost of their loss.

6.      ATM Annual Charges: - No matter which card you opt for, be it a master card, be it Rupay card, or be it American card but the main point you need to keep in mind is- how much are the annual charges of that card? Many banks charge Rs.500 to Rs.1000 annual charge of the card, which is unnecessary expenses. If the bank charges Rs.100 to Rs.200 annually then it is safe and reasonable. 

7.      Net Banking charges: - In the digital world, maximum transactions are done digitally so must ask your bank that do they charge on RTGS, IMPS OR NEFT online services, and if yes then how much? 

8.       ATM Transaction Charges: - ATM transactions are free in few small banks but in other, they start charging after 2nd or 4th transactions.

 

Coming to the Current Account type and if you are running a business so you must know about the benefits of Current Account.

  

1.      Low Balance maintenance: - In this also you need to check how much low balance you can maintain. 

2.      Auto sweep: - Very few people know that you can earn interest in the current account too and auto sweep facility enables it. You can earn up to 7.5% of interest on your deposited fund in your current count.

3.      Selection of bank: - if you don’t want to face irrelevant obstacles then do open your account in the bank that is registered on the government website. 

4.      Credit card: - if you pay your credit loans on time, it enhances your credit score which will help you in the future.

 

Next time don’t let any bank to engulf your profit, be smart…