When you run a business, company, firm, or public enterprise, you engage in regular dealings. These require you to conduct a considerable number of transactions which is not feasible with a savings account. Moreover, maintaining a separate identity for businesses is essential to carry out transactions seamlessly.

Hence, banks provide a current account. It caters to varying requirements of business entities. It offers liquidity needed for carrying out multiple transactions. Owing to the various facilities provided by the bank, it comes with zero interest. It is also beneficial for freelancers, sole proprietors, or anyone conducting commercial activity. If you have not opted for it for your business needs, you are missing out on these benefits:

Overdraft facility: Working capital is a standard requirement for businesses. It is used to make daily payments for raw materials, dealers, etc. Any shortfall in it causes a halt in smooth functioning. Therefore, banks allow you to overdraw temporarily when you experience a shortage. It is like a short-term loan that banks may levy interest on. This service is not available to savings account holders.

Segregated business finance: Many companies open a current account in bank for carrying out unlimited transactions with ease. Besides, it allows them to have a separate record of business expenses and incomes. It gives a clear picture of business functions and position. This is not possible when a single personal account is used for all purposes. It leads to a mix up of personal and business funds, which causes trouble in filing tax returns and recognising losses.

Professionalised image: When you have a business, you have a brand entity to maintain. You must make dealings in its name, which facilitates its immediate recognition among vendors and depicts a professional attitude. It also helps issue unlimited cheques, pay-orders, demand-drafts, etc., in the company's name. The cheque balance here is renewed every month, unlike a savings account where a cheque book gets issued for the entire year.

Creditworthiness: Many creditors and lenders need to verify your business authenticity for sanctioning loans. They check your business existence proof and other documents for this purpose. Having a business account facilitates this process. You could also give a letter issued by the bank stating its presence. This is especially useful for conducting import/export with foreign counterparties.

Advanced services: To cater to your multiple business needs, banks provide many facilities with the account. These include multiple-location withdrawals, 24/7 banking, mobile alerts, doorstep banking, free pay-order issues, etc. You can make instant fund transfers with National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS). You also get a relationship manager to conduct various instructional activities.

All these provisions make the current account an attractive organisational banking mode for conducting transactions.