Individual current accounts: Benefits, minimum balance, and who should open one

Mint

02-05-2025

Are you doing a lot of transactions in your savings account but face restrictions on withdrawals on deposits as a result? While premium savings accounts offer a lot of benefits including low to nil charges for frequent withdrawals, an individual current account will be ideal if your transaction volumes and value are really high. Here is a guide on an individual current account, its features, who can open it and its benefits.
An individual current account is tailor-made for personal use and is held by a single account holder. It offers higher limits on withdrawals and deposits compared to savings accounts. Most individual current accounts provide unlimited and free transactions at ATMs (Automated Teller Machines). You would also be given a debit card with multiple benefits.
These accounts come with perks such as customised debit cards, preferential interest rates and waivers on certain fees charged by banks. Customers can also avail overdraft facilities for the current account. An individual current account is mainly used for personal financial transactions such as paying bills and regular expenses. They are easier to open and manage compared to non-individual current accounts. Banks typically charge minimal or no maintenance charge on these accounts.
Individual current accounts are best suited for self-employed professionals like doctors, lawyers, and consultants. Professionals offering their services on a freelance basis to multiple clients can also opt for these accounts as it will help them in managing their finances better. Such accounts are suitable for small business owners who operate on a sole proprietorship basis.
An individual current account, like other current accounts, comes with a host of benefits. Though the deposit and withdrawal limits vary with each bank, several banks allow you to park and pull out funds to the tune of ₹ 2 lakh per month. Most banks determine the withdrawal and deposit limits of your current account based on your minimum account balance (MAB).
State Bank of India (SBI) allows customers to withdraw and deposit 100 times the MAB of the previous month for its standard current account. The maximum limit is capped at ₹ 5 lakh per month. HDFC Bank allows cash deposits of up to ₹ 10 lakh per month or 25 transactions per month, whichever limit is breached first, on its current account for professionals.
The minimum balance for an individual current account is higher than a savings account. Though the minimum balance requirements vary with each bank, you have to hold ₹ 5000 on an average in your current account each month. Most banks require you to maintain a minimum average monthly balance of ₹ 10,000 if your branch is located in metros, ₹ 5000 for branches in urban areas and ₹ 2500 for branches located in rural areas.
You should opt for an individual current account only if your transactions, both in terms of volume and value, breach the limits set by savings accounts. If you are a professional, consultant or run a small business with a high volume of transactions that run into lakhs of rupees every month, an individual current account will be the ideal choice.
Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
First Published: 2 May 2025, 10:57 AM IST