New-age company founders grapple with a myriad of challenges — from unpredictable cash flows to the intricacies of financial management. As the startup landscape evolves, choosing the right current account is critical in overcoming financial hurdles and steering towards success.
A current account, with its more flexible transaction limits, is better suited for the needs of a growing business. Choosing the best current account for startups can offer several benefits, including
Instant access to funds, which ensures smooth cash flow. Seamless online transactions enabling efficient payment collection and vendor payouts . Overdraft facility Payroll facility/employee account. Here are the top 10 current accounts for new-age companies chosen to streamline the financial operations of an early-stage company.
Current Account Products by Fin Techs
Mysa RazorpayX Current Accounts From Traditional Banks
Yes Bank - Yes Head Startup Axis Bank - New Economy Group HSBC Start-ups Banking ICICI Bank -iStartUp IDFC Startup Current Account HDFC Current Account Kotak Mahindra RBL Bank Current Account Products by Fin Techs 1. Mysa Mysa simplifies current account opening and management for new-age companies by collaborating with a few trusted partner banks. With our self-serve digital bank account opening system (launching soon), founders and managers can open accounts according to their requirements while following the partner bank’s guidelines.
Key Features Dedicated Assistance: Mysa’s team helps founders with account opening and understanding the operational rules, charges, and everything else. Account and Integration Management: Mysa facilitates bank account information (coming soon) data transfer with Zoho Books, automating bookkeeping and account maintenance. Centralised Platform: Mysa’s central control system compares different products and helps founders choose the best current account for startups (coming soon).2. RazorpayX RazorPayX has an online-only automation-ready current account system for new-age companies powered by Yes Bank, ICICI Bank and RBL Bank. The account holders can benefit from granular access controls for team operations and workflows. Businesses can complete up to 50,000 payments with a single OTP, ensuring a faster workflow.
Key Features Collaboration with Professionals: Founders can provide view-only access to accountants and CAs, reducing their work to send the required details.Unlimited Transfers: All sorts of banking transactions have no limit, making banking easier and hassle-free. Integration with Apps: It's possible to connect the current account with accounting platforms like Zoho Books, Tally, SAP, etc., to make record-keeping convenient. Fees and Charges Current Account Subscription : RazorpayX current account subscription comes at ₹1499 as a one time fee.Banking Transactions : NEFT, RTGS, and IMPS transactions are chargeable at ₹10 or 1% per transaction. Digital Banking Tools With online access to the account, founders can automate vendor payments, taxes, and payroll. Account holders can access a smart dashboard for complete visibility into all the transactions.
Current Accounts From Traditional Banks Here’s a list of the most popular current accounts offered by traditional banks. Note that the banks are not ranked with reference to any parameter.
1. Yes Bank - Yes Head Startup Yes Bank has emerged as a new-age bank offering a range of current accounts designed to cater to diverse business needs. With three distinct tiers – Edge, Prime, and Exclusive – Yes Bank provides the flexibility for customers to seamlessly switch between these tiers based on their specific usage requirements, making it an ideal banking partner for businesses.
Among the many account options, is the Yes Head-startup. The account stands out as an ideal choice for startups and small businesses, earning its place on the list of the best current bank accounts for small businesses, thanks to its tailored services.
1. No Minimum Balance Requirement for the First Year: Yes Bank understands the financial challenges that startups and small businesses face. To ease the burden, the Head-startup account offers a reprieve with no minimum balance requirement in the first year, supporting the balance management for emerging businesses.
2. Specialized Support for Entrepreneurs: As a startup entrepreneur, you'll appreciate the specialised support Yes Bank provides to help you navigate the complexities of international business. They do this through:
- Dedicated New Age Banking Team for Startups: This translates to a team of relationship managers who understand the specific needs of startups. Here's how it benefits your startup:
- Industry Expertise: Yes Bank’s team has experience working with startups in your specific sector. This allows them to tailor solutions and anticipate challenges you might face.
- Financial Product Knowledge: They have a deep understanding of financial products relevant to startups, such as venture debt, working capital loans, and ESOP financing.
- Tech-Savvy Approach: Yes Bank’s team is comfortable using online platforms and digital tools to streamline the banking experience for startups. This could include online account opening, automated loan processing, and integration with popular accounting software.
- Startup Ecosystem-Specific Initiatives: Yes Bank goes beyond traditional banking by providing tools and resources specifically designed for startups. Let's explore these initiatives technically:
- API Banking: This refers to Application Programming Interface (API) that allows startups to integrate their financial data and processes with Yes Bank's systems. This enables features like:
Digital Solutions: Yes Bank offers a suite of digital tools specifically designed for startups. These might include: Whatsapp Banking: Yes Bank simplifies Banking by allowing you to leverage your daily messaging app- Whatsapp and use it for banking through chatting with their A. I bot YES ROBOT. Yes Pay Next: A one-stop payments app that allows you to make UPI payments, Bill Payments, recharge your business bills etc. Yes Bank Iris: An all-in-one banking app with 100+ features ranging from payments to investing available on all devices.- Foreign Direct Investment Advisory Services for Startups : Yes Bank provides specialized support for entrepreneurs, particularly in navigating international business through foreign direct investment advisory.
3. Tiered Structure with Flexibility: Yes Bank's three-tier structure offers the flexibility to upgrade or downgrade your account as your business evolves, ensuring that your banking solution remains perfectly aligned with your evolving business needs.
4. Value-Added Services: Yes Bank goes above and beyond to provide Additional Services in all its current accounts, with its Yes Head account being no exception. They provide services like Point-of-Sale Solutions, CGSS-revenue-based financing, corporate cards etc.
5. Merchant Support
- POS Machine: Accept payments using Cards, UPI, and SMS links.
- BQR Mobile Application: Generate dynamic and static QR codes to collect payments.
- Bharat QR Sticker: Accept QR payments using a sticker.
- SMS PAY: Accept payments remotely through an SMS link.
6. Business Credit Cards with Numerous Benefits
Yes Bank provides corporate Yes Credit Cards (Reserv, Elite+, Prosperity) and purchase Credit Cards with complimentary lounge access and even allows for expense monitoring through their Dashboards thus contributing to Expense Management.
7. Various Lending Options
Provides Multiple Lending Options such as- Mortgage Loans, Business loans, Working Capital Loans, Commercial Loans, Supply Chain Financing etc.
8. Integrations with your Tech Stack
Yes Bank offers Robust Integrations through not only its APIs but also direct integrations and a plug and play platform- Yes Connect
- Integrations with Payables & Receivables Management
Chqbook, Vanghee, Acemoney, Open Money: These integrations allow you to manage your accounts payable and accounts receivables seamlessly within these platforms. This eliminates the need for manual data entry, saving time and reducing errors.
- Integrated ERPs
Ledgers, Zoho Books, Global Infocloud, hylo biz: Integrating your Yes Bank account with these Enterprise Resource Planning (ERP) systems centralizes your financial data, this allows for Automated accounting and even reconciliation.
- Incorporation and Compliance Integrations:
ClearTax, Karza, India Filings: These integrations can expedite the company incorporation process and ensure ongoing compliance with regulatory filings. This saves startups valuable time and resources, allowing them to focus on core business activities.
- Payment Gateways:
Razorpay: Integrating with a payment gateway like Razorpay allows you to accept online payments securely and efficiently. This is crucial for startups that sell products or services online.
- Integrations through Yes Connect
2. Axis Bank - New Economy Group Axis Bank , under its banking products for “New Economy Group'', provides a current account with flexible transactions and cash withdrawal limits. Qualifying for the best current account for startups list, the bank offers many business-friendly features like FOREX solutions, instant business loans, etc.
Key Features Average Monthly Balance: You don’t need to maintain a minimum monthly balance in accounts, which means there are no Non-maintenance charges. Zero-Cost Products: Chequebooks, demand drafts, certificates of balance, and standing instructions are provided to account holders at zero cost. Cash Management Solutions: Banking and payment solutions like single payments, host-to-host payments, payroll, and dividend/interest payments are conveniently handled from the account.Fees and Charges Refer to this article to know more about pricing.
Cash Deposit Charges : ₹3 per ₹1000 up to ₹50 lakhs and ₹5 per ₹1000 above ₹50 lakhs
ECS Debit Returns : ₹500 per instance
Cheque and DD : Cheque deposit is charged at ₹100 per instrument, and DD is charged at ₹1 per ₹1000 or minimum ₹25 per DD.
Digital Banking Tools Axis Bank offers online banking solutions that ensure access to funds and account services anytime, anywhere. The bank CMS services streamline payment collection with a customization facility to integrate products and services per requirements.
3. HSBC Start-ups Banking The HSBC bank current account offers a plug-and-play accounting setup that enables integrations with cloud-based Xero and Zoho Books for quick and efficient bookkeeping. The HSBC bank facilitates smooth cross-border transactions and is ideal for companies headquartered in the USA but with subsidiaries in India.
Key Features Access to Financial Experts: New-age companies can access a network of financial experts for international expansion and growth. The bank offers international business guides and local market insights to make expansion more fruitful. 24/7 Virtual Accounting: Round-the-clock virtual assistant for easy reconciliation of incoming credits. Dedicated FOREX Support: Assistance to ensure regulatory reporting and receiving FDI, overseas direct investment, and structured escrow transactions. Zero Balance: HSBC's current account for startups has a zero balance policy and offers free credit and debit cards. Fees and Charges Refer to this article to know more about pricing.
Inward and Outward Remittance : A 0.30% fee is applicable on the transaction amount for outward remittance and ₹200 per transaction on inward remittances.
IMPS Transactions :
For amounts up to ₹1000, ₹2 fee is charged. For amounts between ₹1000 and ₹25,000, ₹5 fee is charged. For amounts between ₹25,000 to ₹5 lakhs, ₹10 is charged. Digital Banking Tools HSBC Net is a suite of online banking services to help companies manage cash flow and achieve better productivity. It offers various features like receivables management, customised payment advice, etc.
4. ICICI Bank -iStartUp ICICI Bank has three types of current accounts for startups:
IStartupTech IStartup 2.0 Gold IStartup 2.0 Silver Key Features Free Debit Card: Account holders get a free Gold Debit business card with exclusive benefits and rewards.Average Quarterly Balance: IStartupTech has no AQB requirements, but IStartup Gold and Silver accounts must maintain ₹1,00,000 and ₹25,000 per quarter, respectively. Cash Deposit: IStartupTech has a free cash deposit limit of 6X the MAB or ₹75 crore. On the other hand, the IStartup Gold has a limit of 10X MAB or ₹2.5 crore, and IStartup Silver has a limit of 10X MAB or ₹1.2 crore. Fees and Charges Refer to this article to know more about pricing.
Cheque Return : No charges for the first two months; after that, it's ₹100 per instance.
IMPS Payment : IStartup 2.0 Silver account is charged at
₹3.50/transaction up to ₹10000 ₹5/transaction from ₹10001 to ₹1 lakh 15/transaction from ₹1 lakh to ₹15 lakh Digital Banking Tools ICICI IStartup accounts come with dedicated API services, which companies can use to ease tax payments, payment collection, and complete banking transactions. They can implement automated solutions for easy and quick transaction data movement.
5. IDFC Startup Current Account IDFC has been included in the list of best current accounts for startups for a variety of reasons, including; “Growth Stage Solutions” and provides access to capital before the company is profitable. They also provide a growth ecosystem to the account holders through mentorship programs and networking events.
Key Features Beyond Banking Services: IDFC Bank's current account offers business-oriented services like payroll, legal, HRMS, ERP, and cloud services.FOREX Conversion: Account holders get preferred FX conversion rates and preferred pricing for Letter of Credit or Bank Guarantee issuance. Startup-Based Solutions: The account comes with a free cash deposit (for a limited time), an AMB waiver for up to 3 years, and a debit card with unlimited zero-cost ATM transactions. All online and offline transactions like NEFT, RTGS, IMPS, and DD are free. Fees and Charges Refer to this article to know more abbout pricing.
Cash Deposit Charges : For cash deposits exceeding the free limit of ₹2 lakhs per month, a charge of ₹3 per ₹1000 is applicable.
Debit/Credit Card Fee : Zero fee
Non-Maintenance Charges : ₹2 lakh limit after AMB waiver is compulsory. NMC are as follows;
Between ₹1.5 lakhs to ₹2 lakhs = ₹1000 Between ₹50,000 to ₹1.5 lakhs = ₹1500 Less than ₹50,000 = ₹2000 Digital Banking Tools Account holders get access to an all-in-one application with more than 100 convenient features to ease personal and business banking operations. With WhatsApp banking, users can access limited account information from anywhere, anytime.
6. HDFC Current Account HDFC's Startup BuildUp program offers a comprehensive package for new businesses. These include FD-backed commercial credit cards for business expenses, advanced payment gateways to streamline receivables, and group health insurance policy schemes for employees. Their current account also has payroll management through salary accounts, tax deductions, and preferential loan rates for employees.
Key Features Average Quarterly Balance: Waiver of AQB requirements if the company has a transaction volume of more than ₹5 lakhs in a quarter. Free Transactions: HDFC bank has waived RTGS and NEFT payment charges made through the bank branch or net banking. Preferred Lending: Get access to a government-provided startup-credit guarantee scheme. Fees and Charges Refer to this article to know more about pricing.
Non-Maintenance Charges : ₹3000 per quarter.
Transaction Fees : ₹25 per transaction after the limit of 12 free transactions is over.
Automated Clearing House (ACH) : ₹350 for 3 transactions and ₹750 from the 4th transaction onward.
Digital Banking Tools HDFC banking online service facilitates 24/7 access to the account on mobile or desktop. With the new-age payment gateway, budding businesses can streamline their receivables while incurring zero maintenance fees. The digital service suite also includes an invoicing system and expense management platform.
7. Kotak Mahindra Kotak Mahindra has quickly risen to the occasion, offering two account types for new-age companies;
Startup Premium Current Account Startup Regular Current Account Early-stage businesses looking for low-maintenance and hassle-free banking can choose the Regular account. Companies with a high transaction volume and wanting to explore benefits like home banking and preferential pricing can go for a Premium account.
Key Features Zero non-maintenance charges: Small businesses benefit from waived minimum balance maintenance charges for the first year, easing their initial financial burden.Maker-Checker Facility: A dedicated portal to cross-check all transactions to ensure the safety and accuracy of the finances. Salary Accounts: There is no limit on employee salary accounts in the Regular account, but the company must have at least five employees with an average salary of ₹25,000 in the Premium account. Fees and Charges Demand Draft and Cheque :
Zero charges until 50 DD for the Regular account and 100 DD for the Premium account . A similar limit applies to banker’s cheque transactions. Post limit charges are ₹1 per ₹1000 amount transaction. Home Banking:
₹750/transaction up to ₹2 Lakhs ₹1250/transaction between ₹2 lakhs to ₹4 lakhs. Non-maintenance charges : ₹5000 if AQB is less than 50% of the limit and ₹3000 if it is between 50% and 100%.
Digital Banking Offers Kotak Point of Sale (POS) machines to accept payments digitally and securely. The account comes with a collection solution for easily reconciling receivables through NEFT, IMPS, and RTGS.
8. RBL Bank RBL Bank’s Indian Startup Club offers business-friendly banking products and services. They offer multi-channel support and tailored solutions for hassle-free banking regardless of the entrepreneur’s or manager’s location. RBL bank also provides a referral platform to get businesses off the ground, ensuring it has the best current account for startups at par with others on the list.
Key Features Zero-Balance Employee Accounts: Streamline payroll management with easy-to-open current accounts for employees regardless of the number of employees. FOREX Services: An easy and high-speed remittance system built to facilitate inbound and outbound transactions. Priority Services: RBL bank offers priority cheque printing, priority bulk payments in one go, and seamless tracking of account receivables, ensuring efficient collection of payments. Fees and Charges Refer to this article to know more about pricing.
Non-Maintenance Charges : If the balance is less than 50% AMB ₹300 and it's more than 50%, then a ₹200 fee is charged.
Cash Deposit : ₹2/1000 and minimum ₹50 per transaction.
Digital Banking Tools RBL Bank’s ‘Bank-O-Net ’ software facilitates bulk payments in all payment modes, wherein account holders can upload a single file. The software includes payable management, receivables management, and reconciliation management.
Open your First Current Account with Mysa The best current account for startups will help you streamline financial operations, offering tools to navigate the ebb and flow of startup finances seamlessly. Conduct thorough research into aspects such as transaction limits, fees, online features, and the bank’s customer service before making a decision.
Those seeking a comprehensive solution to their banking, accounting, and taxation needs can consult Mysa. Our partner banks are already among the best banks for current accounts for startups and have a suite of services tailored for small businesses. Get in touch with Mysa to automate banking and fulfil all banking needs.
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