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Business account : Savings or Current

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Heatman

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The two major bank accounts available for customers to open in a bank of their choice is either saving account or a current account. Both of these accounts comes with different privileges and packages. Saving accounts comes with interest depending on how much you save every month while current account attracts interest for services rendered to the account holder.

There is a limitation to the amount of money a savings account can carry while a current account has no limit. Savings account makes use of passbook while current accounts comes with a cheque book. Looking at the different features of these two bank accounts, which one do you consider to be the best as a business account?
 

overcast

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If you are solo business or say single person handling everything then savings account is more than enough. But if you go with LLP/LLC or say Pvt Ltd or INC. Then in such case getting a current account is reasonable. I work as a freelancer but international currency usage makes me want to open the current account. And so I have taken action on that accordingly. You can see that it's reasonable to make use of the current account like this. That way there is a separation of money in between the risk scenarios.
 

moh254

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It depends with what you want to do with the account. If you have or planning to start a business you'll the have to open a business account and if its your own account then a savings account can do well.Currently, for someone like me, a saving account works better because I don't transact with huge sums of money.
 

Heatman

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If you are solo business or say single person handling everything then savings account is more than enough. But if you go with LLP/LLC or say Pvt Ltd or INC. Then in such case getting a current account is reasonable. I work as a freelancer but international currency usage makes me want to open the current account. And so I have taken action on that accordingly. You can see that it's reasonable to make use of the current account like this. That way there is a separation of money in between the risk scenarios.
There is a very good point in what you have just mentioned about the nature of your business need and the best account to choose for your banking purposes. I understand very well how international currency usage influences one's need for different accounts. I personally have to move past opening a current account for domicilary account (Euro account).

It depends with what you want to do with the account. If you have or planning to start a business you'll the have to open a business account and if its your own account then a savings account can do well.Currently, for someone like me, a saving account works better because I don't transact with huge sums of money.
If you are running a small scale business, I believe that running a savings account would serve the business banking purpose perfectly. Taking it to a current account will be just incurring more expensive instead of interest for the business savings.
 
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I believe it has always been wise to have a current account for business, because it will enable one get money at anytime unlike saving account that have some restrictions.
 

Gabbar

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If you are talking just for about Business purposes than Current account is preferred as their is no limits to deposit and withdrawal and we can easily do that many a times a day and when required as this account doesn't allow us to earn any Interest but we need to have minimum balance at all times.
 

overcast

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People do open the currency exchanger accounts because for them that works out. I think some of the time bank accounts made specially for the companies are easier to handle. But per money transfer that can be seriously harder to handle. I have a bank account that asks me to sign papers every time foreign currency comes in. So that can be a headache.
 

Gabbar

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I am actually planning to open a current account but I may complete the formalities sometime soon. In a way, it helps as we don't need to bother of any limits while withdrawing or deposit money into the account as we all are working online, so we can get many deposits in a month.
 

Heatman

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I will prefer to use Current Account especially when dealing with the bigger company that insist on either Cheques or TT transfer
Dealing with a big company should come with an upgraded account. Here, we are not talking about thousands but in millions, so the best account to use for such business transactions should be a current account. It's the ideal account for any company deals because it's even going to raise your profile in the company's board image.
 

bendahara

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Dealing with a big company should come with an upgraded account. Here, we are not talking about thousands but in millions, so the best account to use for such business transactions should be a current account. It's the ideal account for any company deals because it's even going to raise your profile in the company's board image.
Actually even if you are dealing with payments of thousands, the companies will prefer cheques in view that they do not want their staff to handle cash.
 

Heatman

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Actually even if you are dealing with payments of thousands, the companies will prefer cheques in view that they do not want their staff to handle cash.
Exactly! Companies prefer dealing with cheques especially when it's a huge sum of money involved. The use of cheques makes the business transaction more cooperate related and the documentation will be more official.
 

Kei

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#13
As the name implies, business accounts should be kept for business as it deals with larger sums bigger customers and extra features that are mostly suitable for business. I wouldn't want to be using a passbook from a company but rather a cheque. It is more formal.
 

Heatman

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As the name implies, business accounts should be kept for business as it deals with larger sums bigger customers and extra features that are mostly suitable for business. I wouldn't want to be using a passbook from a company but rather a cheque. It is more formal.
Exactly! Levels changes when you go up the ladder. In as much as saving accounts look good, there are purposes that have outgrown the use of savings accounts, so the use of business or current account would best be suited for such business.
 
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For business purpose since one will be needing money all the time a business account will do justify to frequent withdrawals but for just saving then the savings account should be considered.
 
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