What is the Difference Between Individual and Non-Individual Current Account?

Current Accounts offer an essential gateway to simplify your daily financial transactions. You can choose a Current Account based on how you wish to manage your finances. The two main categories of Current Accounts are individual current accounts and non-individual current account.

In this blog, we have decoded both so that you can make an informed account opening decision.

What is an Individual Current Account?

Contrary to popular belief, where current accounts are seen as business accounts, an individual current account is designed for personal use. You can use an individual current account to manage personal transactions, salary deposits, etc.

Features of an Individual Current Account

1. Higher Transaction Limit: Enjoy higher limit on deposits and withdrawals.
2. Unlimited and Free ATM Transactions: Carry out transactions an ATMs without any restrictions.
3. Debit Card: Get a debit card that comes with multiple offers. 
4. Digital Banking: Comprehensive digital tools, including mobile and internet banking.
5. No Interest: Typically, no interest is earned on the balance maintained.

Who Should Open an Individual Current Account?

• Self-employed professionals like doctors, lawyers, and consultants.
• Freelancers managing payments from various clients.
• Small business owners operating as sole proprietors.

What is a Non-Individual Current Account?

A non-individual current account is specifically designed for entities such as businesses, partnerships, trusts, and associations. These accounts accommodate higher transaction volumes and come with features tailored to organizational needs.

Features of Non-Individual Current Accounts:

1. Customisable Solutions: Tailored for business requirements, including multi-user access.
2. Bulk Transaction Support: Enables large-scale transactions efficiently.
3. Cash Management Services: Advanced tools for liquidity and treasury management.
4. Trade Services: Facilitates import-export businesses with trade finance support.
5. Higher Transaction Limits: Allows for substantial daily transaction volumes.

Who Should Open a Non-Individual Current Account?

• Registered companies and corporations.
• Partnerships and joint ventures.
• Non-profit organizations and trusts.
• Clubs, societies, and associations.

Key Differences Between Individual and Non-Individual Current Accounts

How to Choose the Right Current Account?

Selecting between an individual and non-individual current account depends on your specific needs:

• If you are a sole proprietor or freelancer managing personal financial transactions, an individual current account is sufficient.
• If you represent an organisation with higher transaction volumes and multiple stakeholders, a non-individual current account is a better fit.

Factors to Consider:

1. Transaction Volume: Higher volumes demand advanced features, as seen in non-individual accounts.
2. Customisation Needs: Businesses may need multi-user access and bulk transaction capabilities.
3. Fees and Charges: Evaluate account maintenance fees and transaction costs.
4. Banking Services: Consider the bank’s digital tools and customer service.