Current accounts are essential for start-ups to manage their daily transactions and cash flow. They also offer various benefits such as overdraft facilities, online banking, payment gateway integration, and value-added services from partner networks. However, choosing the right current account for your start-up can be a daunting task, as there are many factors to consider such as minimum balance requirement, transaction charges, interest rates, and customer service.
To help you out, we have compiled a list of the 7 best current accounts for start-ups in India in 2023 based on their features, benefits, and eligibility criteria. Here they are:
- IndusInd Freedom Current Account
IndusInd Freedom Current Account is one of the best current accounts for start-ups in India as it offers a zero balance account with no minimum balance requirement. It also provides free fund transfer via NEFT, RTGS, and IMPS, free cheque book and demand draft issuance, free cash deposit up to INR 2 lakh per month, and free online banking and mobile banking services.. Additionally, it offers value-added services such as payment gateway integration, escrow account facility, trade finance solutions, and preferential rates on forex transactions.
Eligibility: The start-up should be a private limited company, a limited liability partnership, or a one-person company with a date of incorporation up to 3 years.
- Axis Bank StartUp Current Account
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Axis Bank StartUp Current Account is another great option for start-ups as it offers a cashback of up to INR 50,000 on the first year’s average balance maintained. It also offers free online transactions via NEFT, RTGS, and IMPS, free cheque book and demand draft issuance, free cash deposit up to INR 30 lakh per month, and free online banking and mobile banking services. Moreover, it offers entertainment and grab deal benefits such as discounts on movie tickets, dining, travel, and shopping.
Eligibility: The start-up should be a private limited company or a limited liability partnership with a date of incorporation up to 10 years.
- HDFC Bank SmartUp Current Account
HDFC Bank SmartUp Current Account is a tailor-made current account for start-ups that offers pre-approved loans on current account deposits. It also offers free online transactions via NEFT and RTGS, free cheque book and demand draft issuance, free cash deposit up to INR 50 lakh per month (for SmartUp Max variant), and free online banking and mobile banking services. Furthermore, it offers value-added services such as payment gateway integration, merchant services, trade finance solutions, and advisory services.
Eligibility: The start-up should be a private limited company or a limited liability partnership with a date of incorporation up to 5 years.
- Kotak Mahindra Bank Neo Current Account
Kotak Mahindra Bank Neo Current Account is a low-cost current account for start-ups that offers auto-sweep facility to convert current account balance above INR 1 lakh into term deposits. It also offers free online transactions via NEFT and RTGS (for Neo Plus variant), free cheque book issuance (for Neo Plus variant), free cash deposit up to INR 2 lakh per month (for Neo Plus variant), and free online banking and mobile banking services. Additionally, it offers value-added services such as payment gateway integration, merchant services, trade finance solutions, and preferential rates on forex transactions.
Eligibility: The start-up should be a sole proprietorship firm or a partnership firm or a private limited company or a limited liability partnership with an annual turnover of up to INR 5 crore.
- SBI Power POS Current Account
SBI Power POS Current Account is a unique current account for start-ups that offers free POS machines with zero rental charges and zero installation charges. It also offers free online transactions via NEFT and RTGS (for Power POS Plus variant), free cheque book issuance (for Power POS Plus variant), free cash deposit up to INR 25 lakh per month (for Power POS Plus variant), and free online banking and mobile banking services. Moreover, it offers auto-sweep facility to transfer surplus funds in the current account to the term deposit account. And free online banking and mobile banking services. Additionally, it offers value-added services such as merchant services, trade finance solutions, and preferential rates on forex transactions.
Eligibility: The start-up should be a sole proprietorship firm or a partnership firm or a private limited company or a limited liability partnership with an annual turnover of up to INR 10 crore.
- ICICI Bank iStartup Current Account
ICICI Bank iStartup Current Account is a comprehensive current account for start-ups that offers concession on interest rates and processing fees on loan benefits. It also offers free online transactions via NEFT, RTGS, and IMPS, free cheque book and demand draft issuance, free cash deposit up to INR 1.8 crore per month (for iStartup 2.0 variant), and free online banking and mobile banking services. Furthermore, it offers value-added services such as payment gateway integration, merchant services, escrow account facility, and advisory services.
Eligibility: The start-up should be a private limited company or a limited liability partnership with a date of incorporation up to 10 years.
- IDFC First Bank Startup Current Account
IDFC First Bank Startup Current Account is a specialized current account for start-ups that offers nil balance maintenance requirement for initial 3 years. It also offers free online transactions via NEFT, RTGS, and IMPS, free cheque book issuance, free cash deposit up to INR 30 lakh per month, and free online banking and mobile banking services. Moreover, it offers value-added services such as payment gateway integration, merchant services, trade finance solutions, and best-in-class escrow and API solution.
Eligibility: The start-up should be a private limited company or a limited liability partnership or a one-person company with a date of incorporation up to 3 years.
Conclusion
Choosing the best current account for your start-up depends on your business needs and preferences. You should compare the features, benefits, charges, and eligibility criteria of different current accounts before opening one. You can also consult with your bank representative or financial advisor for more guidance. A current account can help you manage your business transactions smoothly and efficiently, as well as provide you with various value-added services to grow your business.