Corporate accounts are in line with current accounts as they both serve the same goal of business purposes. However, there is a slight difference. The current accounts maintained by private limited companies and public limited companies are corporate accounts. Additionally, a current account at a bank or building society allows for withdrawing money without notice. It’s an active account designed for frequent deposits and withdrawals by cheque. Mintyn digital bank offers this service just like any other financial institution, but in a more digital manner, emphasizing flexibility and safety.
In opening a current account which is the same way you open your savings account. There are some things you need to keep have in mind because savings account is mostly basic kind of account. For the current, means you would have to balance your cheque book at regular, stipulated times. Also, you need to keep a running balance each day as long as you have a current account. The fees that come in current accounts is too keep your accounts steady but then sometimes, it becomes something you need to avoid, that is why yiu have to be very much careful with the business account.
As a business man or woman, you would have to be smart in opening and maintaining a business account. Maintaining it might be difficult and so you would have to play your card right and own that financial independence. Mintyn digital bank lets you own this and are still clearing the way for your financial freedom as a customer in our bank.
Features of a Current Account
1. A current account allows you to regularly handle large volumes of payments and receipts on a daily basis.
2. It manages your finances in a pleasant manner efficiently, by separating personal transactions from business transactions. In case you are self-employed, you can benefit in the form of credit appraisal at the time of applying for a business loan.
3. There is no limit on the number of withdrawals that you wish to make in a day.
4. With a current account, cheques, demand drafts or pay-orders can be issued in order to pay directly to creditors.
5. Maintaining a current account offers businesses significant benefits: no additional fees on inward remittances, flexibility in making withdrawals and deposits across multiple locations, and a multi-location fund transfer facility.
6. Businesses can make multiple withdrawals (without a pre-set limit) from their current accounts unless any cash transaction tax has been levied by the government.
7. Inter-bank communication allows creditors (of the current account holder) to have access to and gauge the account holder’s creditworthiness.
8. Similar to other types of accounts, a current account allows internet and mobile-banking – a feature that allows account holders to conduct their transactions easily and getting of statement of account via email.
9. As a current account holder, you would be eligible for a host of value-added services, such as doorstep banking, 24×7 phone banking, interest on current account balance, etc.
Advantages and Disadvantages of a Current Account
Advantages
1. Make payments easy: Your current account will usually include a debit card, which you can use to make payments in person, online or over the phone.
2. Stay in control of your money: With your bank app, you can see your account details and possibly get a warning if you have you uses an arranged or over draft or wanting too. This will help curve the action to take to avoid interests or fees.
3. Build your credit history: This is something that will benefit you greatly as a current account holder. If you make payments on time and avoid spending more than your available balance, it can show lenders that you can manage your money. So you will be able to borrow from the bank if your account was managed responsibly.
4.Secure your money: Banks protect your funds under the central bank or a financial service compensation scheme in case of any issues.
5. Your current accounts helps you manage your everyday banking needs in terms of sending and receiving money.
Disadvantages
1. There is an opportunity cost of losing on the interest rates due to low or zero interest on money in current account.
2. There is an operational burden attached since most package accounts offer services at additional costs.
3. The involved paperwork and fine print serves to be lengthy and confusing.
4. Huge fees due to corporate business transactions.
5. Depends on the bank, you might have a limit to your transactions daily.
Differences Between Current and Savings Accounts
1. In a savings account, the account holder earns interest on savings, while in a current account, banks usually do not provide interest on deposits because the money deposited must be used for business transactions.
2. Individuals open a savings account for personal use, often for short-term savings. Businesses or firms open a current account to conduct various bank transactions as per their business needs.
3. A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions.
4. When you withdraw more money from the account, than is actually there, then your account is said to be overdrawn. In the case of a savings account, banks neither offer nor allow overdraft facilities, whereas, this facility is provided with a Current Account.
5. The minimum balance required to maintain a savings account is usually low, but for a Current Account it is much higher in comparison.
How to Open a Current Account
Any interested customer meeting the Central Bank of Nigeria (CBN) criteria can open a current account in all Nigerian banks. To open a regular current account, follow these requirements for opening a current account in Nigeria.
1. Choose a bank. (e.g. Mintyn digital bank)
2. Fill a form either online or offline. But with Mintyn digital bank you can do virtually everything online and it is easier.
3. Account opening form duly completed.
4. One recent clear passport photograph of signatory.
5. Identification of signatories (Driver’s License, International Passport, National Identity Card or Voter’s Card)
6. Residence permit (where applicable)
7. Two independent and satisfactory references.
8. Completed with just 5,000 deposit, your current account is live
Types of Current Account
1. Premium Current Account: This is suited best for the ones who are planning to perform high level financial transactions.
2. Standard Current Account: This offers standard procedures like internet and SMS banking and bears no interest.
3. Foreign Currency Account: As the name suggests, if you have a business that entails sending or receiving money in foreign currencies, this account is the best bet.
4. Packaged Current Account: This one is way better than a standard account. It provides quite a decent amount of benefits along with features such as travel insurance, accident insurance, etc.
5. Single Column Cash Book: It provides no features but allows you do some businesses.
A lot of the major banks offer varied services when it comes to current accounts. Take a stock of each, do your research, and make sure you pick the best of them.
Mintyn digital bank is a flexible online banking that has creative exquisite features for every customer banking with us. The idea is to push every customer into the financial freedom and drive that formation of digitalization.
The current account in mintyn is built with you in mind, to give you the financial independence that you deserve. Enjoy easy, free and transparent banking when you own a Mintyn account today.
Steps in Opening a Current Account with Mintyn
A Mintyn account needs no paperwork to get you started. In a few simple steps, you’ll be all set to go.
1. You can open the current bank account with your phone, laptop, desktop or any of our agencies. (with all your paper work ready)
2. Enjoy Free Convenient Banking: There is no limit to the number of withdrawals in a month, so you can make payments and send money as often as you like. Carry out your transactions without worrying about any transaction fees or maintenance charges, because it’s free.
3. Stay Informed. Stay in Control: No more second-guessing. Get notified instantly of your credit and debit transactions via SMS, Email, and Push Notifications.
4. Flexible Funding Options
Fund your Mintyn account or receive money from your buddies via any bank’s debit card, any bank’s app, Quickteller, or USSD.
It is that easier, so what are you waiting for? Download the Mintyn app and start – your current account will be live in just a few minutes.
Or download the app from the google or apple play store.
Mintyn bank is here for you.
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