Small businesses and startups are booming nowadays. Current accounts serve as one of the essential aspects of the business. Several banks are offering multiple types of the business accounts. Choosing the best bank for current account India 2021 can be tricky. Therefore, we have assimilated the list of best banks for business accounts to help you out.
Table of Contents
What is a Current Account?
The Current Account is the bank account for the business entity that handles a large volume of transactions through payments or withdrawals for a business. Additionally, you can avail yourself of facilities like overdraft, loan approval, etc. with your current bank account.
How to open a current account?
You can open this account in a bank by visiting the nearest branch or through their online portal. The banks have different eligibility criteria. Before you apply for opening a business account, you must check the eligibility criteria for current accounts in the specific bank. After submission and verification of the documents, the bank opens a business account for your business.
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Documents Required
You require to submit a copy of the following documents to open an account.
1. Photo identity proof: Aadhar card, Voter ID, passport, or driving license
2. PAN card
3. Address Proof
4. Color photograph
5. Account opening cheque from an individual savings account or existing business account
6. For sole-proprietorship firm: Registration and license document from a government body, documents stating Power of Attorney (POA).
7. For HUF: HUF letter
8. For partnership firm: partnership deed, partnership letter, and list of beneficiaries holding more than 15% of firm shares (on letterhead).
9. For LLP: Registration certificate, LLP deed agreement, LLP letter, POA, list of beneficiaries holding more than 15% of firm shares (on letterhead).
10. For private/ public company: MoA, AoA, Board resolution, updated list of directors, shareholding pattern.
These are the general criteria for this type of account. You must check the document requirement list in the specific bank for a more detailed list.
Factors to keep in mind while choosing the best current account
Choosing the best bank for a current account is easy if you look into the current bank account features considering the following parameters.
1. Basic features of business account: ability to handle several transactions.
2. Minimum balance requirement (AMB and AQB).
3. Charges associated such as operational charges, processing fees, etc.
4. Additional facilities such as overdraft amount, loan approval, etc.
5. Ease of internet and mobile banking.
6. Customer support service
Now that you know what to look for while choosing the best bank for business account, let’s dive into the list of top banks for business account.
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Best Banks for Current Accounts in India
To find out which is the best bank for current account, just go through the list of the best bank for a current account mentioned below.
HDFC Bank
HDFC, which is best bank for current account, has 14 types of current account tailored to cater different business needs. You can choose the best fit business account by exploring the features of each account. The business account in HDFC bank has AQB requirements ranging from Rs. 10000 to Rs. 5 lakhs (depending on account type), except for institutional account. You can enjoy several product facilities such as credit cards, rewards, loans through ATM, etc. The operational charges for this account usually range around Rs. 1500 to Rs.8000 (varies with account type). It is one of the best banks for business accounts in India but you must consider the minimum balance and fees and charges before choosing it.
Click here to know more !
ICICI Bank
ICICI bank is the best bank for current account opening owing to its advanced technology to enjoy business transactions at your fingertips. It has multiple types of current accounts categorized as premium, special, trade, merchant services. The QAB of premier account ranges from Rs.25000 to Rs. 10 lakhs except for RCA standard account with MAB of Rs. 10000. The charges of premium current accounts range from Rs.1000 to Rs.8000 depending on the account type. The most essential advantage with the ICICI bank current account is that you can avail of banking services through the InstaBizz app.
Click here to visit ICICI Bank website.
State Bank of India
SBI is one of the oldest and most trusted banks that offer the best business bank account India. It has multiple business account types with MAB ranging from Rs.5000 to Rs.10 lakhs. The charges of SBI current accounts are lower compared to other banks. However, the internet and net banking facilities are average. But it has a great network of branches all over India.
Click here to know more about this account in SBI Bank.
Bank of Baroda
Bank of Baroda is one of the best bank for current account India. It offers 8 types of current bank accounts catering to the needs of small to medium to large business bodies. The QAB for current accounts in this bank ranges from Rs.2500 to Rs.2.5 lakhs and account charges range from Rs. 300 to Rs.1000+GST per quarter. The charges depend on account type and location (metro, urban, rural). Advantage of this bank is low QAB and low charges. But the disadvantage is Bank of Baroda has very few branches.
Click here to visit Bank of Baroda website.
Yes Bank
Yes, Bank provides three-tier current accounts. These are named Edge, Prime, and Exclusive. The QAB ranges from Rs. 10000 to Rs. 2lakh and account charges range from Rs. 500 to Rs. 5000. You can upgrade or downgrade your account type at your convenience. However, the internet and mobile banking services are poor.
Click here to visit Yes Bank website.
Axis Bank
Axis bank provides 11 current account types to cater to all business needs. The MAB of these accounts ranges from Rs.0 to Rs.50 lakhs depending on account type. The charges for this account range from Rs.750 to Rs.25000 depending on account type and different terms & conditions of the bank.
Click here to visit Axis Bank website.
Citi Bank
Citi Bank is also one of the best bank for current account owing to its Global Network. You need to maintain the Monthly Citibank relationship value and the charges depend on the relationship value tab.
| Citibank Relationship Value | Monthly Charges |
| Greater than Rs. 15 lakh | Nil |
| Rs. 15 Lakhs | Nil |
| Less than 15 Lakhs Tier 1 location | Rs. 1500 |
| Less than 15 Lakhs Tier 2 location | Rs. 1000 |
Click here to visit Citi Bank website.
Kotak Mahindra Bank
Kotak Mahindra Bank provides 10 types of current accounts to cater to the needs of startups, SMEs, and large businesses. The QAB ranges from Rs.10000 to Rs.15 lakhs depending on account type. The charges vary from Rs.750 to Rs.8000 depending on account type. The account charges are higher compared to other banks.
Click here to know more about this account.
IDFC First Bank
IDFC First bank is suitable for current account opening owing to its lower minimum balance requirement. It has MAB ranging from zero to 2lakhs depending on account type. The charges vary from Rs.300 to Rs.3000 per month. The only disadvantage with this bank is that it has very few branches.
Click here to visit IDFC First Bank website.
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Frequently Asked Questions
1. Which bank has minimum balance for current account?
Almost all bank has minimum monthly or quarterly average balance requirement. However, some of the above-mentioned banks have some account types that do not require a minimum balance for a current account such as SBI, IDFC, Axis, etc.
2. Which business bank account is best?
The business accounts that can provide you all the banking facilities at a lower MAB or QAB and fees and charges are the best option for you. Check out the current accounts in the above-mentioned banks to find the right fit.
3. Which bank is best for business account?
You can judge the best bank for business account according to your business needs from the above-mentioned list.
Final Thoughts
With multiple options, it can be tricky to choose the best bank for business account. However, we hope our list of best current account banks will guide you to make the right choice.
Top 10 Best Bank for Current Account in India 2021
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