What are Current Accounts in a Bank?

Now let us have look at current bank accounts:

Many companies, firms, public enterprises, and business people have generally dealt with a large number of regular transactions with banks, so they should have to maintain this current account in banks which includes deposits, withdrawals, and contra transactions. The current account is also named “Demand Deposit Account”.

Bank Deposits 

Banks are financial institutions that provide safety to our money. An individual who can open his account in Banks has the right to deposit his funds in different types of accounts depending on his need he can deposit in any account such as savings account, current accounts, and money market accounts (internet-based account). An account holder can deposit or withdraw his funds according to an agreement governed by banks.

How Bank Deposits work:

When an account holder deposits cash in a bank, a depositor gives legal title to his deposited cash, this account becomes an asset of the bank. Sequentially, the account becomes a liability to the bank.

Types of Current Account:

These are different types of current accounts offered by different banks to account holders based on their necessity are:

♦ Premium Current Account

♦ Standard Current Account

♦ Foreign currency Current Account

♦ Package Current Account

♦ Single column cashbook current account.

How does a Current Account Work with a Bank?

Demand deposits works

  • A Demand deposit account or Current Account mainly works on the desire of account holders on their deposited money, they can withdraw their deposited money according to their needs. They can withdraw money through bank cards, checks, or withdrawal slips. Some banks charges fees monthly on current accounts, sometimes they may wave off the fees if the customer meets other requirements like transfer of current accounts into a savings account. Maintaining any bank account have some advantages and disadvantages. Current account also

Some advantages and disadvantages are listed below:

Advantages of current account:

  1. Larger volumes of receipts and payments handle systematically in current accounts.
  2. The current account charges fees on each transaction and it allows accountholder withdrawals from his deposits.
  3.  The current account holder can make his payments through cheques, demand drafts, and pay orders to creditors.
  4.  An account holder of a current account can deposit his money in any of the branches of the home bank with some fees.
  5.  Current account holders can enable internet connection and mobile banking to carry out their business transactions easily.
  6.  A businessman can also avail overdraft facility on his deposit.
  7. ·Current accounts in the bank develop the industrial progress of the country.
  8.  Current accounts holder can deposit funds in any location of the bank and they can transfer funds to multiple locations.

Disadvantages or Underrated considerations on Current account.

  •  There is a chance banks can lose interest rates on current accounts because of low-interest rates on them. Involves more paperwork consisting of lengthy and confusing fine print.
  • Additional service costs on some accounts become a burden.
  •  Banks are collecting huge fees because packaged corporate business account holder transactions become difficult to normal business transaction limits.


This is some information about how banks are dealing with current accounts of companies and also large-scale industry transactions.