A current account streamlines your business operations by facilitating the management of large volumes of receipts and payments, ensuring smooth transactions.
We have shared a list of the best banks for opening a current account for Startups in India.
How to Choose the Best Current Account for Startups? The parameters on which the banks have been picked to choose the best current account for Indian Startups are –
Minimum balance requirements
Operational Charges Ease of Internet Banking Ease of Account Opening Additional Product Benefits like Loan Approval Service & Support All these factors play a major role in deciding the best current account for startups
1. Yes Bank Current Account 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. HSBC Current Account For founders looking for a startup bank account, HSBC's current bank account comes highly recommended for several compelling reasons. Firstly, HSBC champions complete digital banking solutions, simplifying onboarding and operational processes, making it a breeze for tech-savvy entrepreneurs to manage their banking needs.
Their expertise in handling Foreign Direct Investment (FDI) ensures adherence to FEMA guidelines and also speeds up KYC/FIRC issuance compared to other banks, streamlining international transactions, and making them an ideal bank account for startups
HSBC is also renowned for its support of startups beyond just banking. They offer corporate credit card limits, lending options for EBIDTA negative startups*, and access to a vast network of VCs and ecosystem partners through curated events, fostering growth.
Their 'Beyond banking' proposition offers cost-saving integrations with platforms like Zoho, AWS credits, and discounts on various services.
Additionally, HSBC caters to the unique needs of new-age companies and startups with zero balance employee salary accounts, premier accounts for top management, and efficient trade payment solutions, establishing itself as a reliable and supportive banking partner for ambitious entrepreneurs.
Especially if your parent company is incorporated outside of India, all these features can be really lucrative for your business and ease of banking.
3. ICICI Current Account ICICI Bank sets itself apart as a leading provider of innovative banking technology solutions. Whether it's Internet banking, online account opening, or mobile banking, ICICI Bank offers user-friendly technological features that are effortlessly navigable making it one of the best current account for startups
The bank's technological prowess is a primary selling point, with its banking platforms being advanced and user-friendly, making it one of the top choices for businesses in India looking for technologically advanced banking solutions.
ICICI Bank offers three distinct types of current accounts for startups 1. Premium Current Accounts: Designed for domestic businesses, these current accounts offer exclusive benefits such as free cash deposits of up to Rs. 2.5 lakhs per month (up to 75 crores) and increased daily transaction limits. The quarterly average balance requirement ranges from Rs. 25,000 to Rs. 10 lakhs, with charges starting from Rs. 1,000 to Rs. 8,000.
2. Special Current Accounts: Tailored for startup accounting operations , chartered accountants (CAs), and customers registered on eNAM and GeM platforms, as well as for escrow purposes. These accounts require a quarterly average balance of Rs. 0 to Rs. 5 lakhs, with charges ranging from Rs. 0 to Rs. 8,000.
Features and Benefits Mobile Application: For businesses, ICICI Bank's iBizz mobile application is a game-changer, offering a suite of convenient banking services. This includes CMS payments and online approvals for LC (Letter of Credit), BG (Bank Guarantee), remittances, and bill payments, making it a must-have business application for modern banking needs.
Cardless Withdrawl: The bank offers cardless cash withdrawals at ATMs, a useful feature for making payments to beneficiaries without bank accounts.
Advanced Technology: ICICI Bank excels in delivering state-of-the-art interactive technology, enhancing the banking experience across a wide range of products and services.
No Initial Minimum AQB: It provides the advantage of a zero balance for the first six months, with a subsequent minimum balance requirement of INR 25,000, making managing your balance easier.
Dedicated Services: Dedicated Forex Service and advisory personnel offer personalized services.
Free Cash Withdrawals: Enjoy free cash deposits up to 12 times, along with complimentary RTGS, NEFT, chequebooks, and access to mobile and internet banking services.
Startup-centric features: The bank offers startup-specific accounts to assist with registration and networking.
Eazypay Services: Eazypay offers comprehensive merchant services, including POS (Point of Sale), collecting money through the web and app, and UPI QR, streamlining the payment process.
Account Options Smart Business Account 2.0 Ivy, 2.0 Platinum, 2.0 Gold, 2.0 Silver
4. RazorpayX Current Account In the ever-evolving landscape of business and finance, staying ahead of the curve is vital for success. Traditional banks often fall short of meeting the dynamic needs of today's businesses. That's where the concept of a startup bank comes in. RazorpayX steps in with its New Age startup banking current account, designed to empower a wide range of enterprises, from SMEs and startups to established corporations, making it an essential tool for any startup or business.
As highlighted on their website, 90% of India's tech startups trust RazorpayX, underscoring their unparalleled reliability and efficiency. But it's not just startups that benefit; businessmen, professionals, and entrepreneurs across various sectors can leverage the advanced features and capabilities of this cutting-edge financial platform to streamline their business operations.
As of writing this blog, RazorpayX offers current accounts in partnership with two major Indian banks, these banks are proving to be one of the best bank for startups even themselves: Yes & RBL Bank, positioning themselves as a facilitator rather than a bank, and emphasizing the accessibility and convenience of managing a current account . Thus instead of being the best current account themselves, they act as a facilitator.
Key Features Powerful Automation: Say goodbye to manual tasks. RazorpayX enables you to automate vendor payments , tax settlements, payroll, and much more, streamlining your financial operations.
Minimum QAB: The requirement of maintaining a minimum Quarterly Average Balance (QAB) of Rs 10,00,000 without worrying about non-maintenance charges simplifies financial management and balance maintenance for businesses.
Smart Dashboard: Managing your business transactions has never been easier. The smart dashboard provides a user-friendly interface for effortless monitoring and control of your inflows and outflows.
Beneficiary Addition & Superior Payouts: Instantly add beneficiaries without a cooling-off period or transfer limits, allowing for lightning-fast payouts with just a few taps, enhancing the efficiency of your transactions.
Integrations: Seamlessly integrate with accounting software like ZohoBooks, Quickbooks, Tally, and popular business tools like Slack and Shopify for streamlined business management.
Built-in Tax Payments: Simplify tax management by paying TDS , GST, and Advanced Tax in just 30 seconds and storing challans in one place.
Payroll: Disburse tax-compliant salaries in just three clicks and ten minutes. Enjoy affordable health insurance and instant salary accounts, adding value to your financial management practices.
Everything You Need: RazorpayX provides a comprehensive package, including cheque leaves, debit cards, cash deposits, walk-in branch facilities, and OD facilities, making it a robust choice for managing your current account and debit transactions.
New Beneficiary Additions: Instantly add new beneficiaries with no transfer limits, ensuring smooth financial transactions.
Lightning-Fast Payouts: Execute up to 50,000 payouts using smart bulk payouts, making large-scale transactions a breeze.
API Integration: RazorpayX, compatible with the financial apps and ERPs (Enterprise Resource Planning systems) you rely on, offers APIs designed for handling large volumes efficiently.
5. IDFC Bank Current Account IDFC FIRST Bank's current account, a powerful ally for businesses in India, offers a plethora of features and benefits tailored to your needs, making it an ideal choice for business banking, especially for those in the fintech sector.
They are also well known for adopting and being at the forefront of technology. They can not only be your great banking partners, but if your startup requires banking APIs for doing business, IDFC might be the most competent in handling your needs and working with your tech team, showcasing their commitment to banking and startup collaboration.
Here's a glimpse of what awaits you:
1. Streamlined Banking Experience: Say goodbye to the hassles of juggling multiple banking platforms. With IDFC FIRST Bank, you gain access to a single-view Internet & Mobile Banking Platform that simplifies your financial management, enhancing your banking experience.
2. Trade Forex Solutions: For businesses involved in international trade, our trade Forex solutions will make navigating the foreign exchange landscape a breeze.
3. Doorstep Banking: In the digital age, convenience is key. Our GPS-enabled doorstep banking service ensures that your banking needs are met right at your doorstep, saving you time and effort and redefining banking convenience.
4. Payment and Receivable Solutions: Managing payments and receivables is crucial for any business. With IDFC FIRST Bank, you'll have access to a range of solutions designed to make this process seamless and efficient for your business.
5. Transparent Fee Structure: We believe in transparency, which is why we're upfront about our current account fees and charges. No surprises, no shocks – just a clear understanding of what you'll pay for your current account.
Businesses come in all shapes and sizes, each with its unique needs. That's why IDFC offers a range of current account options to cater to businesses of all scales, ensuring every business finds its perfect match.
Here's a breakdown of some of IDFC's most popular choices:
1. 100K Current Account: Ideal for larger businesses, this account offers generous benefits, including a free cash deposit limit of ₹12 lakhs per month, a free Visa Signature Card, 300 free cheque leaves per month, free DD issuance, free 25 ATM transactions per month, and a ₹1 lakh Average Monthly Balance (AMB) requirement, making it a comprehensive business solution.
2. 50K Current Account: A great choice for medium-sized businesses, this account features a free cash deposit limit of ₹6 lakhs per month, a Visa Signature Card, 200 free cheque leaves per month, free DD issuance, free 15 ATM transactions per month, and a ₹50K AMB requirement, tailored for the evolving needs of your business.
3. 25K Current Account: If you're running a smaller business, this startup current account provides excellent value with a free cash deposit limit of ₹3 lakhs per month, 50 free cheque leaves per month, 10 free ATM transactions per month, a Visa Platinum Card, free DD issuance, and a ₹25K AMB requirement, supporting your business's growth.
4. 10K Current Account: This startup current account is designed for Indian founders and small businesses, offering a free cash deposit limit of ₹2 lakhs per month, a Visa Platinum Card, 25 free cheque leaves per month, free DD issuance at bank branch locations, 5 free ATM transactions per month, and a ₹10K AMB requirement, fostering the innovative spirit of startups and small businesses.
Bonus
Dynamic Current Account for Professionals: For professionals in fields such as medicine, law, architecture, and finance, IDFC offers a dynamic current account with cash deposit limits at 10 times the AMB, 8 free DD issuances, 250 free cheque leaves per month, and no AMB requirement, provided you have a valid membership certificate or license in your respective field, making it a versatile choice for professionals.
Who Can Apply? The IDFC FIRST Bank current account is available to a wide range of business entities, including individuals, Hindu Undivided Families (H.U.F.), sole proprietorships, partnerships, and limited companies/limited liability partnerships, catering to the diverse needs of the business community.
In conclusion Your choice of a current account is not just a financial decision but a strategic one that can impact your business's growth and success. Depending on your business type, you should carefully select your banking partner, be it for startups, banks, or professionals, as it can save you a lot of headaches down the line. Ultimately, the best choice will depend on the specific needs and preferences of the business owner, taking into account the unique characteristics of each. It’s always important to do your own research and compare different options to find the account that best suits your requirements and preferences.
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