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What is a current account?

Apart from a savings bank account, one can also open a current account with a bank. This account usually caters to the people who run businesses and it is designed for carrying out business transactions.

ET CONTRIBUTORS|
Jan 13, 2020, 06.30 AM IST
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Banks do not pay any interest on current account balances.
1. Current account is a bank account for people who run businesses. It is designed for carrying out day-to-day business transactions easily.

2. The funds in a current account can be withdrawn any time from a bank branch or an ATM.

3. The account can be used for electronic transactions or cheque transactions.

4. Since current account balances tend to fluctuate quite a bit depending on the cash needs of the business, banks usually do not deploy these funds.

5. Banks do not pay any interest on current account balances.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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