If you run a micro business looking for the Best Current Account for a Small Business, there are certain factors you must consider. Many banks offer services geared towards serving businesses of this size. These services differ in nature and the benefits.
This article looks at some of the different services offered by the biggest banks in India. The features discussed should also help you understand which are most important for your business.
Features of Current Accounts for Small Businesses
Being a small business owner can be challenging. Being able to manage your finances flexibly is of vital importance, especially for small scale industries. Consider below some features for the best current account for small business.
- Minimum Balance: In most cases, Current Account holders must maintain a stipulated minimum balance. Many banks are now offering deals and waiving this condition. Some banks now offer Zero Minimum Average Balance for the first year after joining. You can even find a bank that requires no minimum balance indefinitely. Not having to keep a minimum balance can provide small businesses a small boost and financial flexibility. Interested parties should consider all the features a particular bank offers instead of focusing on just one.
- Free NEFT, RTGS, Net Banking Transfers: Most banks offer this feature, so there is little to worry about. You might even find some banks that have added Cheque facilities to their services.
- Overdraft Limit: It is one of the highlighting features of a Current Account. Using this facility, you can withdraw more than the available amount. It is subject to charges, which may vary bank to bank. Consider what works best for you and your business when deciding.
- Rewards: You can receive rewards for transactions with some banks via your Current Account. Some banks even offer special Forex Rates. Depending on your business operation, these rewards and offers can be useful.
- Value Added Services: This is a big factor for small business owners to consider. Growing a small business can be challenging on many levels. Banks have started providing services to help businesses operate better and grow faster. You will find a wide range of services to choose from. Many banks provide advisory services, marketing services, and digital media solutions. You can also receive Foreign Direct Investment Advisory and Forex Service and Advisory.
Services: Each bank charges differing amounts for their services. Select what suits you best.
Location: Having a bank branch near your business is important, allowing you to always access the bank as per your business needs.
How To Close Your Current Account
You can close your Current Account through a Current Account Closing Letter. Put the date, the recipient, the subject, the body, and the closure on it. In the body of the letter, add your account details, the reason for closure, and any additional instructions. Sign at the end of the Account Closing Letter and provide your contact information. The bank will provide you with further instructions to close the account officially.
CONCLUSION
Choosing the Best Current Account for a Small Business is about finding the best balance between services and charges. Consider your business needs and which Bank’s services will allow you to grow the fastest. On the other hand, if you want to close your Current Account before opening a new one, write an account closing letter to your current bank.
