Saturday, 13 August 2011

Benefits of Maintaining Current Accounts

Current accounts generally cater to individuals and organizations with voluminous banking transactions daily. For reasons of convenience, the account holder would want the bank to take care of their receipts and disbursements.
Most individuals who open this account did so because they are looking for products that can accommodate deposits of their paychecks. Some opened this type of bank account because of its auto-debit features to pay their regular dues and liabilities.
But aside from these, current accounts have other benefits. They can serve you in countless ways to give you a fast and convenient banking transaction. Some of these "extra" benefits are as follows:
  1. You can do your bank transactions online. As long as you have internet connection, bank transactions are now within your fingertips. All you have to do is enroll your account to your bank's page and you have unlimited online banking access. This allows real time tracking of your banking transactions to prevent your checks from bouncing.
  2. You can issue checks for your cash disbursement needs. This allows you to make a cashless payment. This will also increase your liquidity as you can make purchases or pay debts by issuing checks.
  3. Aside from issuing checks, you can also make ATM withdrawals. Most current accounts come with ATM cards to give you a more convenient way of withdrawing your funds. You just need to access an ATM, which is generally available 24/7.
  4. In case your account balance is insufficient to cover an issued check, you can avail of an overdraft facility to prevent you from issuing bounced checks. Most banks provide this facility to their current account holders but not without an extra cost. But paying the cost for the overdraft facility would be better than borrowing cash to pay your entire transaction.
  5. Current accounts can also allow you to transfer funds to your other accounts. This is normally done online.
  6. These accounts earn interest, although the interest is lower compared with savings accounts.
If you are still in doubt that a current account is for you, honestly answer the questions that follow. Any "YES" is an indication that you need to have a current account.
  1. Do you want to have a checkbook and an ATM card?
  2. Do you need to monitor your bank account 24/7?
  3. Do you want an overdraft facility in case you run out of funds?
  4. Do you want a convenient way of paying bills by doing it online?
  5. Do you want to earn interest while banking?
  6. Do you want all these features in one account?
Jason O. Joaquin is an accountant and freelance business consultant. Currently, he is employed as Internal Audit Manager in a group of companies in southern Philippines.
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