Flexible Account Management With Current Accounts

By Author: Shilpika Ponnappa
Total Articles: 428
Comment this article

There are numerous financial accounts that a bank can offer to its clients. Each account has its advantages and disadvantages depending on the financial goals of the client as well as their short term and long term plans for Investment. These options tend to be confusing if you read them side by side but they all offer unique features that have their own advantages. Let us analyze one particular account.

The Current Accounts enables the account holder to acquire unlimited payments at any time. This is a very popular tool used by business men. Most employers will send in money (salaries) directly to the said account. The account allows the employer to pay bills, mortgage and rent. There are two options that the account holder can use.

- The first one is called standing order and it allows the account holder to instruct a bank to make a fixed monthly payment to an employee for example. If there are any changes, they can also ask the bank to increase or decrease the amount.
- The next one is through direct debit. This allows the person to make a non recurring payment to a person.

As you can see such an ...
... account is very useful since it allows flexibility on the part of the account holder to manage the money depending on how he or she desires to handle it. There are other advantages for having this kind of account. First, there is interest applied to your balance. It also allows you to access cash and manage it without delays. You can also enjoy convenient payment options electronically. There is also an overdraft and checkbook facilities. Wages and fixed payments are also done in a breeze. It is an account that allows you full management control of the money and it can be adapted anywhere you go or whatever plans you may have.

Even if this option is advantageous in all great ways, there are some glitches that you might want to know. Even if there is interest that is earned, usually, they are very low. Sometimes, it can be insignificant. There are additional costs for package accounts. Paperwork for this kind of account can be extremely time consuming. As a business, it is possible to be fined insane amounts. If you lose your card, you can be restricted the access to your cash.

If you intend to get this kind of account, you need to choose one with great interest rates and the overdrafts should be low interest. Overall, this is a very good kind of account if your business or industry requires you to deal and manage money all the time.

Shilpika Ponnappa,
Get more information on Current Accounts, Mutual Fund Investment