Vinu: Hey Manu, why is it advisable to use a current account instead of a savings account for business transactions?

Manu: Good question, Vinu. The main reason is that current accounts allow unlimited transactions, while savings accounts usually limit the number of free transactions you can make each month.

Vinu: Oh, so businesses would need more transactions?

Manu: Exactly! Businesses often have a high volume of inflows and outflows, and current accounts are designed to handle this. Savings accounts aren’t suited for such frequent activity.

Vinu: Got it. What about any other benefits?

Manu: Well, with a current account, you also get an overdraft facility, which means you can withdraw more money than you have in the account, in case of emergency or a cash flow issue.

Vinu: That sounds useful for businesses. Anything else?

Manu: Definitely! Having a current account gives your business a professional image. Many vendors or clients prefer dealing with businesses that have a proper current account, not a personal savings account.

Vinu: Makes sense. Are there any limits on how much money you can withdraw?

Manu: Current accounts typically come with higher withdrawal limits compared to savings accounts, which is useful when you need to withdraw or deposit large amounts regularly.

Vinu: And the interest? I know savings accounts offer interest on deposits.

Manu: True, but that’s where the difference lies. Savings accounts are meant for personal savings, not for handling frequent transactions. They offer interest, but that’s not what you need for a business. Current accounts don’t offer interest, but they’re designed for day-to-day business operations without any restrictions.

Vinu: Ah, that clears things up. Current accounts really are more suitable for business needs, right?

Manu: Exactly! They’re built to handle business transactions smoothly, while savings accounts are better for personal use.