What are current account explain

Question

Accepted Answer

Current account is a type of bank account that allows frequent transactions and does not earn interest.

Current account is mainly used by businesses and individuals who need to make frequent transactions.
It does not earn interest on the balance maintained in the account.
It usually has a higher minimum balance requirement compared to savings account.
Overdraft facility is available in current account.
Examples of current account are checking account in the US and current account in the UK.

Accepted Answer

A current account is a type of financial account that allows individuals, businesses, and organizations to manage their daily financial transactions. It is also known as a checking account in some countries.

The primary purpose of a current account is to provide a convenient way to deposit and withdraw money, make payments, and receive payments. This type of account typically offers features such as debit cards, check-writing privileges, and online banking access, making it easy for users to manage their finances and make transactions.

Current accounts may also provide some additional benefits such as overdraft facilities, which allow users to withdraw more money than is available in their account up to a certain limit, typically with interest charged on the amount borrowed.

In some countries, current accounts may also pay interest on the balance maintained in the account, although this is usually a low rate compared to other types of savings accounts.

Overall, a current account is an essential tool for managing daily finances and facilitating transactions, making it a fundamental part of the modern banking system.

What are current account explain

Top Kotak Mahindra Bank Assistant Sales Manager interview questions & answers

Popular interview questions of Assistant Sales Manager

Top HR questions asked in Kotak Mahindra Bank Assistant Sales Manager