Can You Use a Current Account for Personal Expenses?

Current accounts are meant for simplifying your daily business transactions. They come with higher transaction limits, add-on benefits like complimentary lounge access and feature-rich Debit Cards. 

So, can you use a current account for personal expenses? The answer is no. A current account is designed specifically for businesses and high-volume transactions. For personal use, you can open a Savings Account. 

How Does a Current Account Work?

When you open a current account with a bank, they would give you chequebook, Debit Card (may vary based on the current account type), Internet Banking or Net Banking and Mobile Banking details. Current Accounts generally come with minimum average balance (MAB) requirements. Once you make the initial payment/deposit , your account would be active.

Do Current Accounts Earn Interest? 

Unlike a Savings Account, Current Accounts don’t earn interest. To get the benefits of higher interest rates on your deposits, you can open a Digital Savings Account or Fixed Deposit.

Personal Use of Current Accounts

While it's technically possible to use a current account for personal expenses, it's generally not recommended. Current accounts often come with higher maintenance requirements and fees than savings accounts.

Advantages of Current Account 

1. Higher Transaction Limits

   Current Accounts come with higher transaction limits. For example, with Ujjivan’s Business Edge Current Account, you can enjoy up to ₹1.5 lakh ATM transactions per day.

    

2. Higher Liquidity 

   Another benefit of a Current Account is that you can withdraw cash whenever required. Let’s say you’re in urgent need of cash for your business. You can walk into any ATM and withdraw cash with the designated debit card. Alternatively, you can visit a bank branch with whom you have a current account to withdraw cash.

    

3. Customised Current Accounts for Different Business Needs

   You have the option to select from different types of Current Accounts. For instance, Ujjivan offers Business Edge Current Account, Maxima Current Account, Regular Current Account, Privilege Current Account and Premium Current Account. Each of these accounts caters to specific business needs.

    

4. Overdraft Facilities

   In case you need urgent cash for your business, instead of applying for a high-interest personal loan, you can opt for overdraft facility. Check with your bank regarding rules and regulations pertaining to availing overdraft against current account.

    

5. Add-on Benefits

   Current accounts come with other benefits like complimentary lounge access, free cash withdrawals, free cheque leaves, monthly account statements, non-cash services like Demand Draft, etc.