Almost everyone today has a savings account, at least people who still don’t believe in keeping their money beneath their bed. Coming back to the point, savings account is common but what about current accounts? While it may not have been the best idea to go for a current account few years back, with all the benefits you get, it is better to do some research on a current account too.
Current accounts are meant for people who have to do business transactions or any kind of transactions on a day-to-say basis. This is unlike savings accounts, where people generally deposit money for future use.
Current accounts are far more secure today and they have become user-friendly. The biggest benefit of having a current account is the interest you get on account balances. With so many banks available to grab more customers, you may get overwhelmed if this is your first current account. Some people open a current account in the bank which their parents went for. This is not the best decision you could make, because the bank they opted for might not offer the greatest benefits in today’s world.
Also, there are many free current accounts option which can be lucrative at times but more often it is part of some tactic to attract more customers. If you are really interested in having a current account, then read on to find some great benefits and what you should be looking in a bank when you do decide to open a current account.
Ideal balance should be maintained
When it comes to current accounts, the interest rates offered to the depositor differ for every bank. You won’t have any limitations when it comes to the amount of money you can store in the account, but there would be limitations on the amount of money you can withdraw from the ATM on a daily basis.
The one thing that every bank demands is the maintenance of a minimum balance. If your bank doesn’t have the minimum balance, then you will earn lower rate of interest. However, just because you can store any amount of money in your current account, you should not stack up a large sum of money. It is advisable to store enough to last you for a whole month. More than that should be invested elsewhere where it will give you higher returns.
The additional charges
If you have credit in your current account, then you have to pay no charges in many banks today. However, you may be charged with monthly fee for additional services if you go for packaged accounts.
Some banks charge for withdrawing money from ATMs abroad or for requesting duplicate statements and others do not. Before you open a current account with any bank, you need to find more about these services and charges.
Packaged accounts are another great benefit which includes free annual travel insurance and other great benefits. You just need to find the ones that suit your needs.