As of 2022, India has the world's third-largest startup ecosystem. Many startup founders believe they can control their finances without a current account at first. They will, however, realize that they need a current bank account for simplified withdrawals, deposits, and other commercial activities sooner or later. Here is the lowdown on the best current accounts for startups and why they are a must-have for budding entrepreneurs.
HDFC is one of the customer-friendly banks. Making a current account with them is an excellent choice for any new business.
1. This HDFC current account is designed specifically for new businesses.
2. SmartUp current account tends to come with a 12-month waiver on minimum balance maintenance. As a result, it is a substantial relief for a new business. Following the waiver period, you must maintain the minimum deposit quarterly.
3. Some HDFC Bank branches also provide co-working rooms for startups.
In addition, the bank offers Internet Banking.
1. An account owner can withdraw and deposit money from any HDFC Bank branch up to 12 times per month.
2. This account allows for unlimited free NEFT or RTGS transactions.
3. If you keep a healthy minimum deposit, you can perform 150 money transfers for every Rs. 1 lakh you keep.
4. Use NetBanking or the Mobile app to access your bank account.
Aside from the current accounts mentioned above, HDFC also provides a regular current account. Customers can make free cash deposit accounts and use any HDFC branch to access the bank's services. Their SmartUp offering, on the other hand, is ideal for startups.
Axis is a renowned private sector bank that provides numerous benefits and services to startups that open current accounts with them.
1. The bank waives the minimum balance requirement for 24 months for every startup's current account.
2. During the initial period, service charges are also waived for two years. It helps startups in managing their expenses.
3. The bank allows free cash withdrawals and deposits at any branch office up to a limit.
4. There are no fees for checkbooks, bank drafts, or pay orders.
5. The bank offers many additional benefits to new current account holders.
1. Startups can deposit up to 3 lakhs INR per month and withdraw cash from any branch at any time.
2. Account holders can go completely digital and conduct NEFT or RTGS transactions unlimited times.
3. The average monthly balance requirement is Rs. 25,000.
1. A budget range of Rs. 1 lakh is required for Axis Classic Current Account Account holders.
2. You can get a fortnightly cash deposit limit of 12 lakhs INR, and cash withdrawals are unlimited.
3. Transactions via NEFT or RTGS are not limited.
Axis Bank also provides other current account options, such as Axis Privilege, Axis Normal, and Axis Channel One. However, the majority of these bank accounts are designed for large businesses. The most suggested account type for startups is Axis StartUp.
1. The account's purpose is to meet the startup company's needs and to assist young entrepreneurs.
2. For the first six months, the account has a zero balance.
3. The bank also offers a variety of other services. They also provide a one-of-a-kind online business networking platform for their startup current account holders.
1. This current account is also intended for new businesses.
2. The account holder is not required to maintain a minimum average balance for the first six months, after which a monthly balance of Rs. 25,000 is required.
3. There is no fee for using a debit card for the first year.
4. Account holders will get 100 free cheques per month, free internet banking, and unlimited cash withdrawals are all included.
Also, there are other banks, including Yes bank, Kotak bank, and Induslnd bank, which are in the startup's offer.
Businesses must conduct significant value transactions. Every day, firms perform many transactions, most of which involve large sums of money. As a result, payments must be carried out safely and thoroughly documented. A current account enables you to perform business transactions securely while tracking money movement effectively.
Rather than creating a separate account for foreign currency exchange, several financial institutions offer forex services in conjunction with their startup-specific current accounts. As a startup pioneer, you can hire an expert to help you navigate the regulations surrounding foreign trade and investment.
The current account supports you with bulk payments. Furthermore, several financial institutions offer electronic collection services that allow you to receive payments digitally via RTGS and NEFT. As a result, you can enhance the efficiency and effectiveness of revenue collection.
Current accounts are ideal for your businesses if you need to manage your transactions daily. Now, enterprises can make more informed decisions due to real-time access to accounting reports and other transaction information. A current account can also help you improve your creditworthiness.
A current account provides a clear picture of your transactions, expenses, and income, allowing you to make wise financial judgments.
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