Nowadays, opening a zero-balance current account online is a cakewalk. However, it's important to open a zero-balance current account with no hidden fees & no minimum balance requirements — if you're an entrepreneur or freelancer. Primarily because your earnings may vary each month & spending patterns might fluctuate accordingly.
A current account is a financial deposit account that allows limitless transactions. Current accounts differ from savings accounts because they don’t provide any interest on your balance. Ordinarily, business people and entities like public and private companies, partnership firms and proprietors open current accounts (both individual or joint accounts).
Unlike usual current accounts, zero-balance current accounts don’t require account holders to maintain any monthly average balance.
The monthly average balance (MAB) indicates the figure arrived at by adding the closing balance at the end of each day in a month and dividing it by the total number of days under consideration.
The minimum monthly average balance differs for every bank. Provided you opt for a zero-balance current account, you will not be required to maintain a minimum monthly average balance.
In order to open this account, though, you need to submit appropriate KYC documents in addition to the bank’s zero-balance current account opening form. Note: Different banks may require different documents.
Once your application has been submitted, your documents will be verified and provided your form is approved, your zero-balance current account will be opened.
In order to be eligible to open a zero-balance current account that will primarily be used for business purposes, you need to fall under any one of these categories:
Although the documents required to open a current account online may vary for each bank, zero-balance current accounts ordinarily require you to upload:
Proof of identity
Proof of address
Photograph
Hindu Undivided Family
Partnership Firm
Private or Public Limited Company
Sole Proprietor
Trust
While the idea of having a zero balance current account is enticing for business owners, banks will lose out on one major source of revenue, ie. MAB or non-maintenance penalty fee. Before you open a zero-balance current account, it’s important to determine if it suits your business needs. So, please take a moment to read the fine print associated with the account.
1. Can a current account be opened online?
Yes, you can open a current account online.
2. Can I open a personal current account?
Current accounts can be opened by individuals, trusts, societies, Hindu undivided families or specified associations, public and private limited companies as well as by partnership firms. Rather than being used for personal purposes, their primary objective is to help business-oriented account holders carry out financial transactions with ease.
3. Can we open current accounts online?
Yes, you can open current accounts online, and they can be held individually or jointly.
4. How do I open a current account?
In order to open a current account, simply download the current account application form from the official website of your preferred bank. Make sure to fill it out correctly and upload the required documents along with your completed form. Once your documents have been verified and your application has been approved, your account will be opened, and you will be informed of the same.
