Startups are the backbone of the Indian economy and play a critical role in driving innovation, creating employment opportunities, and contributing to economic growth. However, starting a business can be challenging, and startups need to manage their finances efficiently to survive and thrive in a highly competitive market. A current account is an essential tool that startups can use to manage their day-to-day finances and grow their business. In this article, we will discuss five current account features that are most suited for startups.
Low minimum balance requirements
Startups operate on tight budgets and need to manage their cash flows efficiently. Therefore, a current account with a low minimum balance requirement is ideal for startups. Most banks in India require a minimum balance of Rs. 10,000 to 25,000 for a current account. However, some banks offer current accounts with a minimum balance requirement as low as Rs. 5,000. By opting for a low minimum balance requirement account, startups can avoid paying penalties for non-maintenance of the minimum balance and save on costs.
Online banking facilities
In today’s digital age, online banking facilities are essential for startups to manage their finances efficiently. Online banking allows startups to check their account balance, view transaction history, transfer funds, and pay bills from anywhere and at any time. Most banks in India offer online banking facilities to their current account holders. Some banks even provide mobile apps that enable startups to access their accounts on-the-go. By using online banking facilities, startups can save time and reduce the need for physical visits to the bank.
Cash flow is a crucial factor for the success of any startup. Often, startups face cash crunches due to delayed payments from clients or unexpected expenses. In such situations, an overdraft facility can be a lifesaver. An overdraft facility allows startups to withdraw funds beyond their account balance up to a certain limit. The interest is charged only on the amount utilized and not on the entire overdraft limit. Overdraft facilities provide startups with the flexibility to manage their cash flows efficiently and bridge the gap between payments and expenses.
Cheque book facility
Cheque books are still an essential tool for startups to make payments to their vendors, suppliers, and other stakeholders. A current account with a cheque book facility allows startups to issue and receive cheques easily. Most banks in India offer cheque book facilities to their current account holders. However, some banks charge a fee for issuing a cheque book or for each cheque leaf. Startups should compare the cheque book facilities offered by various banks and choose the one that suits their needs and budget.
Transaction alerts are an important feature that helps startups to keep track of their account activities. Transaction alerts can be in the form of SMS, email, or push notifications that inform startups about any transaction made from their account. This feature provides startups with real-time information about their account activities and helps them detect any fraudulent activities. Most banks in India offer transaction alerts as a standard feature to their current account holders.
In conclusion, a current account is an essential tool that startups can use to manage their finances efficiently and grow their business. Startups should choose a current account that offers features like low minimum balance requirements, online banking facilities, overdraft facility, cheque book facility, and transaction alerts. By choosing a current account with the right features, startups can save costs, reduce the need for physical visits to the bank, and manage their cash flows efficiently.