When it comes to running a business, efficient financial management depends on a few essential factors, including the strategic utilisation of a current account. Designed specifically to cater to various business entities, including sole proprietorships, partnerships, corporations, and traders, current accounts facilitate the seamless management of large transaction volumes.
They play an essential role in enabling businesses to deposit the cash they acquire from daily activities without any disruptions. This capacity for handling substantial cash deposits not only supports liquidity management but also contributes to maintaining precise records for accounting and taxation purposes.
But the question arises: how much cash can you deposit in your current account?
Cash deposit limits in a current account
Like the current account minimum balance requirement, the free cash deposit limit may differ considerably among distinct account types. For instance, the Indus Premier Current Account by IndusInd Bank allows free cash deposits of up to eight times the previous month’s Average Monthly Balance (AMB) or Rs 10 lakh, whichever is higher. On the other hand, the Indus Select Current Account permits free cash deposits of up to eight times the previous month’s AMB or Rs 20 lakh, whichever is higher.
Hence, different types of current accounts have different free cash deposit limits. It is essential to note that deposits that surpass such limits might result in additional charges. This emphasises the need to select a current bank account that matches your enterprise’s specific cash-management requirements and preferences.
How to manage cash deposit limits and avoid unnecessary charges
Consider the below-mentioned strategies to manage the intricacies of cash deposit limits:
- Beware of your current bank account’s terms and conditions
Before you apply for a current account online or offline, ensure you are well-versed with the terms and conditions of the current account you have shortlisted, particularly the cash deposit limit and any charges that might apply. This allows you to strategically arrange your cash deposits in a way that they stay within the limit to avoid additional charges. It is a straightforward approach to managing your funds properly and avoiding unnecessary charges.
- Make the most out of digital transactions
Encourage your customers and suppliers to make digital transactions. This approach not only cuts down the amount of cash you need to deposit but also simplifies your transaction processes. Direct digital transactions into your current account can help manage finances more efficiently and stay within the free cash deposit limit.
- Smartly schedule your deposits
If your company has fluctuating cash flow, it is essential to time your deposits to make the most out of your bank account’s free deposit limit. By prudently planning your cash deposits, you can stay within the monthly limit and avoid any additional fees.
- Evaluate and adjust your current account
Keep a watch on your bank account’s features and needs periodically. If you need a higher free deposit limit, you can consider switching to another account offering better features to meet your business needs. This proactive approach can help you avoid unnecessary expenses and access additional banking features that can help with business growth.
To sum up
All current accounts have a specific limit up to which cash deposits per month are free and do not incur any charges. Along with considering the other benefits of current accounts, you should make sure to pick a current account which offers a high free cash deposit limit so that you can manage your business’s finances efficiently and cost-effectively.
IndusInd Bank offers a range of current accounts that come with a dynamic cash deposit limit. This feature is beneficial as it aligns the current account’s cash deposit limit with your business’s cash flow and transaction requirements. The best part is that the application process for IndusInd Bank Current Accounts is 100% digital and requires no physical documentation. You can open a current account that meets your business needs in a matter of minutes.
