Question

Current account is suitable for businessmen.

Answer 1

1. A current account is a type of bank account with no limits on the amount of deposits and withdrawals. As a result, it is appropriate for businessmen (traders, hospitals, educational institutions, companies, etc.) who have numerous day-to-day transactions of depositing money or cheques into a bank and issuing cheques to make payments to various parties.
2. A current account is intended to facilitate a businessman's financial transactions, such as cheque collecting, remittances to parties, bank overdraft facility, etc. A salaried individual does not require such amenities.
3. The interest rate on savings in a bank account is of interest to an individual who receives a salary. Since banks are unable to advance loans to businesspeople using current deposits, they typically do not pay interest on current account balances. Consequently, a salaried individual finds that a savings account works well for his few financial transactions.
4. The current account requires a somewhat larger minimum balance to be maintained than the savings account. An individual on a salary cannot afford to keep a sizable amount of money trapped in his account without receiving interest because of his limited income. Thus, businessmen would benefit from a current account.