Business benefits of a Start-up current account

India has the world's third-largest Start-up ecosystem, with approximately over 99,000 Start-ups and 100+ unicorns worth about $30 billion. These companies need efficient Start-up banking services to operate efficiently.

To help Start-ups efficiently conduct their day-to-day transactions, several banks and non-banking financial corporations have started offering Start-up current accounts. Although similar to a standard current account in several aspects, a Start-up current account is designed exclusively for the unique requirements of this group.

This article explores everything you need to know about Start-up current accounts, including their meaning, eligibility criteria, features, benefits, and how you can apply for them.

What is a Start-up current account?

This type of account is designed exclusively for Start-up businesses. It works similarly to a savings bank account, with a few differences -

1. There is no limit to the number of transactions, i.e., deposits and withdrawals, that can be made with a current account (daily or monthly) without incurring additional charges

2. You won't have to maintain a minimum balance in your current account for the initial few years. It means that all the funds in your account are available for use at your discretion 

3. It offers higher cash deposit limits beyond the scope of a regular savings bank account. For example, with the IDFC FIRST Start-up Current Account, your monthly cash deposits of up to Rs 30 lakhs are free

Also read: Smart ways to build the right workforce for your small business

Features of a Startup current account

Let's discuss a few other features of a current account to understand it better -

• Since current accounts are offered exclusively to business owners, firms, and large corporations, they are also known as business bank accounts

• The primary purpose of a current account is to help business owners conduct their business-related transactions smoothly

• You will get a debit-cum-ATM card on your current account, just like your savings bank account. You can also use internet banking to conduct online transactions through this current account

• A Start-up current account is a non-interest-bearing account. It means that banks do not provide any interest to account holders on the funds in their current accounts

• After a few years, you may have to maintain an average monthly balance in the account, as per your bank's policies

• Banks may charge a nominal annual maintenance charge for this current account

• You are required to complete your  KYC and provide business proof to open this account

Eligibility criteria to open a Start-up current account

The eligibility to open up a Start-up current account may differ across financial institutions. Generally, banks and Non-Banking Financial Companies (NBFCs) require some criteria to be met before opening a Start-up current account -

• It can be opened by a private limited company, public limited company, single proprietorship company, or a limited liability partnership

• The date of incorporation of the company must be less than three years from the date of account opening

• The business owner must be a resident of India and have an Indian trade license

• A current account can be opened as a single or a joint account (if a company has multiple proprietors)

Also read: Simple lessons for young businesses from one of the world's biggest superstars​​

What are the advantages of a Start-up current account?

Here are a few benefits of a current account for Start-up founders -

1. Conducting day-to-day business transactions

A current account works best for traders and entrepreneurs who need a bank account to manage their daily business transactions. They can send and receive bulk payments without worry, as business bank accounts offer higher transaction limits than other accounts. And they won't have to pay additional charges for this.

2. Payment tracking

As a Start-up business owner, you may have to carry out numerous financial transactions, and tracking them can be challenging. That is where a Start-up current account will be helpful while also allowing you to separate your personal and business transactions.

3. Conducting hassle-free international transactions

A Start-up current account is beneficial if your business requires you to send or receive money in international currencies. You can use the account for seamless international transactions while receiving expert legal guidance in foreign trade and investment.

4. Boosting your Start-up's credibility

A Start-up current account provides valuable insights into your business spending and shows you how your business has grown over the years. You can share these insights with clients and stakeholders to boost the business' credibility.

5. Accessing credit

Several banks and NBFCs offer an Overdraft (OD) facility on Start-up current accounts. It allows you to access instant credit to fulfil your working capital requirements.

What is the FIRST Booster Account – One of the best Start-up current accounts in India

Now that you know the features and benefits of a current account, you should open one for your business. However, choosing the right current account is crucial to avail of the maximum advantage.

The FIRST Booster Current Account is the ideal Start-up current account with plenty of exclusive features, such as -

• Auto sweep facility for fixed deposits to earn interest on idle funds

• Higher interest on fixed deposits with tenures of up to 370 days

• No minimum average monthly balance requirement

• High cash deposit limit of up to Rs 20 lakhs

• Free VISA Platinum debit card with unlimited ATM transactions

• Zero annual maintenance charges

• Free UPI QR code to receive payments from anywhere in the world

• Real-time grievance redressal through WhatsApp banking

These features allow you to optimise your finances and conduct hassle-free business operations.

Also read: Beyond funding: How can startups benefit from IDFC FIRST WINGS?​​

How to apply for FIRST Booster Current Account?

The FIRST Booster Current Account is available to individual proprietors, partnership firms, and Hindu Undivided Families (HUFs), with an annual turnover of up to Rs 250 crores and a machinery investment of up to Rs 50 crores.

Below are the steps to apply for this Start-up current account:

• Visit the FIRST Booster Current Account page on the IDFC FIRST Bank's website and click on the "Apply Now" button

• Enter your city, name, e-mail address, and mobile number to generate a One-Time Password (OTP)

• Enter the OTP and click on "Submit" 

• Our executive will get in touch with you

• You can also call 1800-10-888 to get in touch with our executive directly

To conclude

A Start-up current account is highly beneficial for Start-ups as it helps them streamline their business transactions during the initial stages. With several useful features, the FIRST Booster Current Account by IDFC FIRST Bank is one of the best solutions for Start-ups.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.