Mostly small businessmen do business through cash transactions rather through the bank. Since they do the less online transaction and also there are some charges in opening a current account and its minimum balance requirement is a little bit more. So, they have a common query that if they can use the savings account for business purposes, and if they can, then will the IT Department pose a problem or will their bank close their savings account?

To answer these queries, let’s first discuss some banking rules regarding this.

If we study rules and regulations regarding Savings Accounts, It is clearly stated that Savings Accounts can be used for savings, it must not be used as a current account and if the bank finds that savings account is used as a current account then it can close the account.

Buy Best Quality Winter Clothes For You From Here

Now let’s discuss the practical aspects.

In reality, many small businessmen are using their savings account as a current account without any problem.

Then the question is, besides so many rules about how they can do so?

Since banking transactions of many businessmen are very less, therefore banks can’t trace them and if anyone makes frequent transactions in a bank, then the bank insists that businessmen change his savings account to the current account. That’s why small businessmen are still making their business transactions through the bank.

Buy Cheap And Best Quality Kids Toys Here

So, Should all small businessmen open the current account?

The answer to this question depends upon various situations, stated below:

If the businessmen have a small business and don’t want to extend his business in the future, then he may not open the current account as there will be the minimum number of transactions that can’t be tracked by banks.

If the businessmen have a small business and want to expand his business, then he should open a current account and do all business transactions through the current Account.

As we know the minimum balance requirement and charges to open the current account is more, but it offers many benefits:

Segregation of Payouts

When you make your business transactions through the current account, it will help you to distinguish between your personal expenses and business expenses. It will clear the image of your savings and your expenses.

Provide Identity to Business

Current Account gives identity to your business as it is named after your business

When you make the transaction through current Account, it provides authenticity and credibility of your business

Get Great Offers On Beauty Products. Click Here

Getting Business loan

If you have a current account, you can easily get a business loan.

Provide Overdraft facility

You can also avail of the overdraft facility. Sometimes, we give the check to someone, and money is short in our current account, then the bank may give the short money to avoid check bounce. So the bank provides the overdraft facility to the current account holder and this limit may vary from customer to customer according to their past transactions.

Now you may have got the idea that which account is suitable for you.

How To Earn Money From Blogging
Whenever you search on the internet for fetching any information, you type certain words on Google, these words are called Keywords. When you type these keywords in Google’s search engine

Most Useful ⊞ Windows Key Shortcuts That You Never Knew
We can use ⊞ Windows Key Shortcuts for different purposes. You should know various uses of these keys so that you can save time. Let’s discuss these shortcut keys one by one.

Tips To Get Band 8 In IELTS Writing
Scores are given in the form of Bands and if you get score above 8 bands, then you will be considered expert in the language and helps you to go abroad for further studies or work.

Got Income Tax Notice Under Section 143(1). What to do now?
In this article, we will discuss, what should we do if we get notice from income tax department under article 143(1). Read the following article carefully..

How to choose the best Air Purifier for our Home
In this post, we will discuss about different type of air purifiers available in India and how much important they are for our health. Especially in cities like New Delhi, Mumbai, Bangalore etc.

Salary of Co-actors Of The Kapil Sharma Show
In this show, various celebrity guests are invited and are interviewed by Kapil Sharma. In this show stand-up comedians like Kapil Sharma, Krushna Abhishek, Bharti Singh, Kiku Sharda, etc. entertain the audience and the celebrity guests with their wonderful acts.

Never Say These Things At Work..
To deal with any difficult situation, choice of right words or phrases and the way you speak can help you a lot. So, today we will discuss five such difficult but common situations that everyone faces in his/ her workplace and how to tackle them to sound professional.

How To Get Canada PR | Step By Step
Express Entry is the system created by the Canadian Government to invite only skilled applicants based on their language, Qualification, work experience for the PR i.e. they are inviting only skilled and qualified people in their country. They make the selection based on the CRS score cutoff.

Miracles of Meditation
Meditation is an ancient science that helps us to recharge our mind and body. It makes our body physically and mentally fit. Meditation makes our life stress free and helps us to solve our problems with great strength. Let’s discuss some of its miracles.

Ask These Questions To Your Kids Daily To Raise Them A Good Human
Every parent wants to make their child’s future bright. They desire to make them a responsible and successful person. For this, everyone is doing great efforts, like doing there admissions in good schools; getting them new bags, books, uniforms or lunch boxes

IAS : A Dream of Many
This is a step-by-step article where aspiring candidates can get a thorough knowledge about preparing for IAS/Civil Services exams, their duties, salaries, living style and much more..

List of Top 10 Highest Paid Government Jobs In India
Lets talk about the Top 10 Highest Paid Government jobs in our country which can be applied by anyone i.e. male, female or Other Gender, even a physically disabled person can apply to these jobs except the uniform jobs. Let’s discuss them one by one as per the increasing order of their Salary.

Dr. APJ Abdul Kalam - The Missile Man of India
Kalam was keen to join the Indian Air force but he lost the chance by one position. After completing his studies from Madras Institute of Technology in 1960, he joined Aeronautical Development Establishment as a Scientist. He started his career from hovercraft design.

Famous Paragliding spots in Himachal Pradesh, India
Bir is a small village that is located in the Dauladhar mountain range and has been continuously serving as a prime location for paragliding for many years. The Paragliding launching site Billing, is at a height of around 8500 ft and offers mindboggling views o

Tips To Achieve 9.0 Bands In IELTS Reading Section
I scored 9.0 in the reading section of the IELTS Exam, I think I am more trustworthy to guide you in this regard.

Tips to Keep Brain Sharp and Healthy
If there is any problem in our brain, it can directly impact the functioning of other body parts. So, it is essential to keep our brain healthy. Let’s discuss some tips that help us to make our brain sharp and healthy.

Websites That Pay You Daily
you need not any experience or college degree for these jobs. You just have to signup and start exploring the relevant fields of work that you are interested in. Your regular savings account can be used for freelancing.

10 Top Technology Jobs in Demands
There are various domains to choose a job but with the increase of technology usage, the demand for Technology jobs has also increased.

Bollywood Stars Who Changed Their Names
Lets talk about the real names of some famous bollywood stars before and after they entered the film industry.

Some important nutrients present in human body and their benefits
In this post, we are going to discuss about different kind of nutrients that are important for human body and what can be the effects of their abnormal levels.

3 NASA approved Plants as Naturals Air Purifiers
In this article, we are going to discuss about the indoor plants available on Amazon India which can purify the polluted air in our surroundings. Have a look at these. These are highly recommended for every home.

Is the IAS (DM) more powerful than the IPS (SP)?
Lets find out who is more powerful - An IAS officer or An IPS officer, What all powers they have got, their responsibilities, salaries, duties and much more..

Canada or Dubai: Which Place is better?
Lets have a look at different things that differ Canada and Dubai from each other. Ways and costs of living, education, quality of life, incomes and benefits and much more. Have a look...

What kind of transactions are tracked by income tax department
In the last few years, the Income Tax department also updated itself and has changed its mechanism to trace tax evasion. To stop tax evasion, it has started working on the logic that a person can hide his income but can’t hide his spending and investments as these are becoming digital.

Savings Bank Account Cash deposit and Withdrawal Limit
If you do transactions i.e. deposit or withdraw money above a certain limit in your Savings Bank account, then bank will give this Information to the IT Department. Let’s check this out in details.