Current account is the account that you need in everyday life (in USA this type of account named checking account) for:
- making or receiving payments
- depositing cash - put money to the bank
- withdrawing cash - take money out
There are various ways to deposit money (not all these ways can be allowed in all countries):
- depositing cash in coins and notes at a bank branch
- sending a wire transfer from abroad
- transfer money from another account
- paying money in electronically
Ways of accessing money vary too (not all can be allowed in all counties and all banks):
- taking cash from a cashpoint (ATM)
- buying goods using a card
- setting up a payment order, standing order or direct debit from one’s account.
The complete list of allowed operations depends on your bank, but usually this type of accounts is not used for savings and investment operations because usually banks propose current accounts with little or no interest.
Most of the current accounts don’t allow negative balance but in some countries banks propose current accounts with overdraft.
Some banks offer to open current accounts for free but with monthly fees.
- Some banks charge fees for closing an account. The goal of most banks is to attract consumers with free or low-cost current accounts and then entice them to use more profitable features such as personal loans and deposits.
- Usually any operation in the account should be paid by bank fees. Some banks propose different conditions of low fees or even without fees (like 3-5 transfers per month or some fixed amount in the deposit account).