How Do Zero Balance Current Accounts Compare to Regular Current Accounts?

Current accounts are often the preferred bank account for salaried professionals to receive monthly wages. They are also used by self-employed individuals and entrepreneurs because they need to perform several transactions daily. While there are many benefits to current accounts, most banks require you to maintain a minimum balance in these accounts. This is where a zero-balance current account may seem more useful.

Understanding Current Accounts

A current account is primarily designed for business because it supports unlimited transactions (whether debit or credit). This feature is useful for business owners who need to make multiple daily transactions with suppliers and customers. Some banks have recognised this need and now offer the facility to create a current account online.

Zero Balance Current Accounts

On the other hand, zero-balance current accounts have started to become popular because they allow business owners the freedom of not having to maintain a minimum balance in their current accounts. Due to this, people who need to make multiple transactions without limitations and forget about low-balance penalties often opt for a zero balance current account opening online.

Differences Between Zero Balance and Regular Current Account

Why Zero Balance Current Accounts?

The process to create current account online, when compared to that of a zero-balance current account, has almost no difference. However, the latter does have its own share of benefits. Zero-balance current accounts are considered more cost-effective. They do not put a financial strain by needing to maintain a minimum balance at all times.

Moreover, some banks have streamlined the process of zero balance current account opening online to cater to the growing needs of small business owners. Some of these business owners may have income instability and need the facility to have their account balances run low without having to pay penalties.

However, you should always plan your finances for the near future and then decide which type of current account to open. If you value uninterrupted and unlimited transactions and have sufficient funds such that your account never runs low on balance, then you can opt for a regular current account. On the other hand, if you are just starting out in your business and run the risk of falling short of funds, then you can opt for a zero-balance current account.

Final Thoughts

So, whether you opt for a zero balance current account opening online or think of opening a regular current account online, the decision depends on your personal and business needs. Each type of account has its own benefits and drawbacks. Nevertheless, you can now easily create current account online (regardless of which type) and access it 24/7 directly on your smartphone.