Top 10 Banks to open a Current Account for Startup in India
After the vision of Prime minister Narendra Modi of startup india initiative. Instead of job seekers, the drive pushed India towards the objective of becoming a nation of job creators. The Startup India initiative has also encouraged India’s top banks to develop current accounts for aspiring entrepreneurs and new start-ups. Today, I’m going to share a list of the best banks where start-ups in India can open current accounts.
Before moving to the list let’s first discuss what is current account and its benefits in India.
There are various kinds of bank accounts in India where you can deposit your money. There is a current account, which is quite popular, in addition to the savings account. You get a massive number of transactions per day, unlike the Savings Account. Therefore, for companies that indulge in a lot of deals, a current account is essential.
While it offers the benefit of a higher number of transactions, no savings or investment advantages in the form of interest or returns are provided by the current account. Specifically, a current account helps you make lump sum transactions while closing crucial deals.
Current account services are offered by all the major banks in India. At any given moment, you can deposit and withdraw funds without any notice. In India, it is the best option for managing cash transactions for business operations.
Benefits of Current Account
Opening a current account for individuals who are just expecting a regular interest in their savings is not advisable. For enterprises, both established and start-ups, the current account is a viable solution.
Following are the benefits of having a current account in India:
- Offers quick transactions in business
- Withdrawals and deposits at the home branch are not limited.
- Enables businesses to issue direct payments through cheques, demand draughts, or pay orders
- Internet banking and telephone banking allow companies to go on the go.
- The current account overdraft facility helps you overdraw your account to an absolute limit.
Top banks in India to open a current
ICICI Bank – New start-up/ Shubharambh Current Account
ICICI Bank is India’s No.1 private sector bank and one of the most sought after banks for business needs. In terms of current accounts, ICICI Bank provides excellent solutions for both start-ups and established corporate companies.
Currently, based on your business type, ICICI Bank offers three different types of current account types. ICICI Bank provides both the New Start-Up Current Account and the Shubhaarambh Current Account for start-up companies. Both accounts offer zero Average Monthly Balance benefits for the first six months, which is a boon to new entrepreneurs.
HDFC Bank – Smart up Solution for Start-Ups
HDFC Bank started its operations to finance the housing sector and finally started banking operations. Today, it is the first choice for current accounts for entrepreneurs as well as corporate firms. HDFC Bank provides a broad variety of current accounts to choose from. You can opt for the one that fits your company.
The bank offers professionals, including bloggers and internet entrepreneurs, a tailor-made current account. The Smart Up Solution for Start-Ups is designed to understand a new business venture’s challenges and requirements.
Kotak Bank – Startup Regular
For individuals, corporate companies, private and public limited companies, partnership companies, etc., Kotak Bank offers a broad range of different current accounts. You can just begin with either a Startup Regular plan or open an Elite plus account with Kotak based on your start-up or an established business entity.
Kotak understands the demand for current accounts today after becoming more strict on transaction fees and the introduction of GST by the Government of India. It therefore provides its customers with a wide range of distinct current account types.
Yes Bank – Edge Business
Yes bank is not as popular as the other banks in India’s list of top current account banks. However, for startups and established ventures, the bank offers a tailor-made current account.
For current accounts, Yes Bank offers a three-tier proposal. You can pick any of the three current account types based on your turnover and preferences. The Edge Business account at Yes Bank is ideal for start-ups as you get a lot of start-up benefits at the minimum quarterly average balance. You can always upgrade to Prime Business or Exclusive Business a/c to obtain better benefits and features.
State Bank India – Basic Current Account
SBI, one of India’s most elite and popular banks, is not far behind in the list of the best banks to open a current account. State Bank of India is a nationalised bank and is not at the top of ICICI and HDFC, given the service rating of a national bank compared to a private bank.
However, after a revamp of the bank with modernization everywhere, the State Bank of India is providing its customer support with tougher competition. You can visit their official website and check the current account features offered at SBI. While you are opening a new current account, you can also benefit from corporate banking for your needs.
Punjab National Bank – Smart Banking Current Account
Two basic types of current account are offered by Punjab National Bank. PNB is now nationwide and provides centres across India, although it began as a local bank. With such a broader range, PNB is an ideal choice for India’s business accounts.
While you can always go for a typical current account, we recommend that you start with the PNB Smart Banking Current Account. You can start your current PNB Smart Banking account with a minimum deposit of INR 5000. You just need to maintain a quarterly average balance starting from 100,000 INR for the basic PNB Silver package on the basis of the variants.
Axis Bank – Normal Current Account
In India, Axis Bank is a well-known private bank, known mainly for its financial services. The bank provides customers with a broad range of current accounts. You can select from a pool of different types of accounts and open an existing account that suits your business needs.
The ideal account type for a startup is the Normal Current Account, where you get all the necessary basic facilities for a new venture. Besides that, all you have to do is keep an average monthly balance of INR 10,000, and you’re good to go.
IndusInd Bank – Made 2 Order Current Account
IndusInd Bank is yet another major bank that we are recommending for India’s current account. With specific criteria, the bank offers a good range of current accounts. Under the Indus Edge account, start-up owners can open a current account with IndusInd.
However, to customise your current account as per your needs, you can also opt for IndusInd’s Made 2 Order scheme. You get the advantages of setting the limits of transactions per day with Made 2 Order, the flexibility of maintaining the minimum balance across accounts and the minimum cost of transactions without hassle.
Bank of Baroda Current Account (Best PSU Bank)
Bank of Baroda offers quality support and service to customers. With a maximum charge of Rs. 1,000 for the premium current account, the bank has one of the lowest current account charges. The other unique facilities in current accounts include auto and reverse sweep facilities that help account holders earn interest. Bank of Baroda offers locker rental rebates and discounts, demat services and the waiver of car loan processing charges.
RBL Bank India Startup Club
For start-ups, RBL Bank offers a specially designed current account where start-ups have access to specially designed RBL branches to serve their accounts. It also organises regular meetings and start-up hackathons and has also partnered with co-working spaces and accounting software to provide start-ups with special discounts.
The minimum balance requirement for the account is Rs 20,000 and charges a fee of Rs 300/month for non-maintenance.
The current account is not the same as the account with savings. You need to ensure that you open a current account at a bank that offers the best benefits and service, given the business aspect of such accounts. In short, your current account should save you both time and money.
So before choosing any bank’s current account go through all the bank’s and choose the best which fits best for your requirements.
It’s all over to you now…