The startup current account is the perfect solution for entrepreneurs and small business owners who are looking to manage their finances in a more efficient way. With a startup current account, you can easily keep track of your spending, set up direct debits and standing orders, make payments online, and access other financial services like overdrafts and loans.
Which Bank Account Is Best for Startups?
8 best bank accounts for a startup:
Kotak Mahindra Bank Current Account
Individuals, corporations, limited or public companies, partner companies, etc. Kotak now recognizes the current account market despite stricter transaction fees and the introduction of GST by the Indian government.
Kotak ActivMoney, an automated sweep and reverse feature that helps increase interest in your portfolio, comes with your entire checking account. Get access to overdraft systems, payment gateways, live cash management, and foreign exchange features.
Kotak Mahindra Bank has the advantage of Kotak Circle, which allows them to consolidate their checking and savings accounts from various companies. This allows you to make better use of your funds and maintain your account balance.
HDFC Bank – Smart up Solution for Start-Ups
HDFC Bank started out with the purpose of lending to the housing sector and eventually branched out into banking. Today, it is the number one choice for checking accounts for entrepreneurs and businesses. HDFC Bank offers a wide range of checking accounts to choose from. You can choose the one that suits your business.
The bank offers customized checking accounts for professionals such as bloggers and internet entrepreneurs. They have a smart app solution for startups designed to understand the challenges and requirements of new business ventures.
ICICI Bank Current Account
Whether you need an internet banking portal, open an online account, or purchase mobile banking, ICICI has easy-to-use technical features that are ready to use. ICICI Bank’s USP is a technologically advanced banking tool.
For businesses, ICICI Bank offers iBizz smartphone applications for online authorization for LC, BG, bank transfers, bill transfers for banking services, CMS payments, and exchanges. ICICI Bank also allows you to withdraw cardless currency at ATMs. This is useful for payments to recipients who do not have bank accounts.
Zero value for the first 6 months, after which a minimum balance of INR 25,000 is required. Personal support is provided through dedicated forex services and advice. Free cash deposits up to 12x with free RTGS, NEFT, Checkbook, Mobile and Internet Banking features.
Bank of Baroda Current Account
Bank of Baroda provides quality customer service and support. This bank is one of the lowest checking accounts with a maximum fee of Rs.1,000 for a premium checking account.
Other unique services include checking accounts automatically and reverse sweep capabilities to help account holders earn interest. Bank of Baroda offers rebates and discounts on safe deposit box rentals, Demat services, and waivers of auto loan processing fees.
Axis Bank Normal Current Account
Axis Bank is a well-known private bank in India, primarily known for its financial services. This bank offers its customers a wide range of checking accounts.
Choose from a pool of different account types to open a checking account that fits your business needs.
For startups, the ideal account type is a regular checking account. This gives you all the basic features you need to start your new business. It is sufficient to maintain a balance of INR 10,000 on average per month.
State Bank India Basic Current Account
SBI is one of the most elite and popular banks in India and is not far behind on our list of the best banks to open a checking account with. State Bank of India is a state-owned bank and has a National Banking Service rating compared to private banks. It’s not as high as ICICI or HDFC.
However, after a bank transformation with modernization everywhere, the State Bank of India faces tougher competition for customer support. You can even run your corporate client business yourself while opening a new checking account.
Punjab National Bank Smart Banking Current Account
Punjab National Bank offers two basic checking accounts. PNB started as a regional bank but now operates nationwide and offers centers across India. Offering such a wide range of services makes PNB an ideal choice for Indian business accounts.
You can always opt for a regular checking account, but for startups, he recommends the PNB Smart Banking checking account. You can open a PNB Smart Banking checking account with a minimum deposit of INR 5000. Based on the variant, you only need to maintain a quarterly average balance starting from INR 100,000 for the base package PNB Silver.
YES Bank Current Account
This bank is not as successful as others on our list of the best current account banks in India.
Yes Bank offers a three-step proposal. You can choose from three checking account types, depending on your turnover and priorities.
Yes Bank Edge Corporate Accounts are ideal for startups as you can get many startup incentives with the lowest average quarterly balance. You can still switch to a Prime Business or Special Business account for better rewards and features.
There is no minimum equalization rule for the first year. Complimentary services include check payment and storage, ATM clipping, internet banking, and mobile banking. Value-added services are provided for new entrepreneurs and foreign direct investment advisory services are provided.
What Is Startup Current Account in ICICI Bank?
One of the current accounts offered by ICICI Bank is the new iStartUp current account. This account is specially designed for young entrepreneurs who want to start a new business. Accounts include a variety of services that help account holders grow their businesses. Account owners can also customize account features.
Current Account iStartUp is ICICI Bank’s attempt to make banking a little more complicated for budding entrepreneurs. This account has been designed keeping in mind all the hurdles and obstacles that are common when starting a new business.
ICICI Bank’s iStartUp checking account is ideal for young people looking to enter the world of business, with features and benefits exclusive to this specific audience.
- Account holders can enjoy a zero balance for the first six months after account opening. Thereafter, account holders are required to maintain an average balance of Rs 25,000 per month.
- Failure to meet the average minimum balance will result in a penalty of Rs.5,000 for accounts opened at RIB and certain SURU locations. Accounts opened elsewhere will be subject to a penalty of Rs. 25,000 if they breach the average monthly balance.
- Having an iStartUp checking account gives account holders preferential import and export transaction fees.
- ICICI Bank’s events and summits offer iStartUp account holders the opportunity to network with private equity investors and venture capitalists.
- ICICI Bank uses various technological advancements to enhance the banking experience for account holders.
- Account holders can also choose the higher tiers of their iStartUp checking account to accelerate business expansion.
- ICICI Bank offers a special offer to iStartUp current account holders providing regulatory and legal advice. The bank will assist in arranging meetings with consulting firms to provide advice and assistance to account holders on issues related to regulatory requirements, registration, and licensing.
- Account owners are also assigned a dedicated relationship manager. These relationship managers customize solutions for account owners.
- Banks provide account holders with guidance on managing foreign exchange services and FDI.
What Are Advantages and Disadvantages of Current Account?
Below table lists out advantages and disadvantages of current account:
|Interest||Some of them pay interest, so their money can grow, even if it’s just in a current account.||Some checking accounts earn interest, but most do not. Interest-bearing checking accounts generally have lower interest rates than savings accounts. This is because checking accounts are used frequently and are meant to be used like cash, whereas savings accounts are often used for less frequently used long-term savings|
|High cost of banking services||Easy access to banking facilities, debit cards, credit cards||Service fees for checking accounts are significantly higher than for savings accounts, so if checking account holders require additional services, they will have to pay significant service fees|
|Limit of Free Cheque Books and Demand Drafts||—–||Banks limit the issuance of free checkbooks or require bills of exchange. 25 numbers per month. If you need more than that, you will have to pay an extra|
|Direct Deposit||You can set up a direct deposit from your employer to your current account.|
Your salary is automatically credited to your current account on payday. This is sometimes faster than receiving it in the mail.
|Track Spending||The current account tracks your deposits and spending, so you know where your money is coming from and where it’s going.|
Some current accounts allow debit cards to be blocked if lost or stolen to prevent unauthorized use.
FAQ: Startup Current Account
1. How much money do you need to start a current account?
The minimum balance to open a normal current account is Rs. 10,000.
2. Is current account tax-free?
The current account is a zero-rated account and there is no tax on the current account.
With its ease of use, security, and convenience, a current account is a perfect solution for businesses looking for an effective way to manage their finances.
Whether you’re just starting out or already established, the startup current account will help you manage your money in the most efficient way possible.
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