The world today is digital and automated. Consistent and aggressive automation efforts are underway in every walk of life. The banking institution is no exception. On top of this, a wide range of banking products has been introduced to capitalise on the opportunities presented by the current market structure.
One of the most basic banking products includes the bank account. It is the simplest type of banking account which offers you an opportunity to keep your hard earned finances safe and apportion them well while having ready access to your resources at all times.
Bank Account Types
There are two basic kinds of bank accounts – the current account and the savings account. The current account offers all the advantages of a regular bank account besides a few additional benefits. You can open up a current account and begin using it immediately to deposit your finances, withdraw them or to make transfers if required. Besides this, different institutions will offer different packages to improve customer experiences and satisfaction.
In contrast with this, another most popular banking account type is the savings account. It allows you to invest your resources and earn returns on them without participating actively in the investment decisions. The percentage of returns tends to vary according to economic conditions and bank policies. Nevertheless, it is a good way for you to multiply their resources effectively without investing additional time or effort.
However, here’s the catch; savings account usually compels you to maintain a certain account balance at all times. This translates into a kind of fixed deposit – the amount is no longer accessible to you. This may pose difficulties (and loses) in the face of an emergency of any sort.
Keep reading to find out more information about how the current account differs from other banking products and the benefits it offers to you.
Perks of a Current Account
It is common for people to opt for the current account due to the benefits it offers. Here are a few which will help you decide whether you would like to open a current account or not.
Firstly, the current account type offers maximum flexibility. You can access your finances at any given moment in time; transfer them or withdraw them as and when required. There are no limitations with respect to the number of transactions you can make or the account balance you need to maintain. You can choose to exhaust your account limit without worrying about negative repercussions.
Secondly, you can seek tax benefits as well. Current account offers increased leverages and diminishes your tax liability considerably. You will be able to feel a notable difference in your disposable income when you switch over to the current account.
Lastly, current accounts offer overdraft protection as well. In case you end up spending more than the finances available in your account, the overdraft protection facility will automatically accommodate for the additional amount. This comes in very handy when you are required to make urgent payments and tackle emergencies.