Best Bank Current Accounts for Startups in India

Starting a business in India is an exciting adventure. Managing finances is a very important part of a business in India. Current accounts are specifically designed for businesses to help in making daily transactions, saving money, and grow the business. The whole indian business landscape is filled with so many current account offerings, which might make you feel overwhelmed. In this blog, we have shortlisted some of the best current accounts for startups in India from the top banks like ICICI, HDFC, and Yes Bank.

Kotak mahindra bank current Account Mahindra Bank offers two excellent current accounts for startups: the Startup Regular Current Account and the Startup Premium Current Account. These accounts offer required banking features at a very low cost.

Kotak mahindra bank current Account Startup Regular Current Account

This account is ideal for early-stage startups by offering them a simple, low-cost banking solution with limited funds.

  • No Balance Fees for 1 Year: No charges for not maintaining a minimum balance for the first 12 months, making it perfect for startups with tight budgets.
  • Free Online Transactions: Free of cost, unlimited NEFT/RTGS transfers via net banking or mobile app.
  • Free Cash Deposits: It allows you to deposit cash up to 10 times the previous month's average credit balance (max ₹1 crore/month) without any fees.
  • Free Cheque Services: Free cheque payments and collections across India.
  • Home Banking: Three free home banking services per month, like cash or cheque pickup/delivery.
  • Business Debit Card: Offers a debit card for easy payments and withdrawals.
  • Digital Banking: Manage your account easily from anywhere by using Kotak mahindra bank current Account's user-friendly app or website.
  • Eligibility: The Business must be registered within 2 years with an initial deposit requirement of ₹51,000.

Kotak mahindra bank current Account Startup Premium Current Account

This account is designed for startups with bigger plans and higher transaction needs.

  • No Balance Fees for 1 Year: Like the Regular account, it also offers no minimum balance charges for the first 12 months.
  • Higher Cash Deposit Limits: Free deposits up to 10 times the previous month's average balance (max ₹2.5 crore/month).
  • Free Cash Withdrawals: Withdraw up to ₹1,00,000/day at non-home branches for free.
  • Bulk Payment Tools: Process multiple payments at once with a secure maker-checker system.
  • Kotak mahindra bank current Account ActivMoney: This feature allows you to convert idle funds into term deposits to thelp you make extra interest.
  • Trade and Forex Services: Supports international transactions along with offering better forex rates.
  • Partner Offers: Discounts on marketing, logistics, or co-working spaces through Kotak mahindra bank current Account's partners.
  • Priority Support: Dedicated customer service for faster help.
  • Eligibility: Business registered within 2 years with an initial deposit of ₹50,000; account holders are also required to maintain an average Quarterly Balance (AQB) of ₹50,000

Even though Kotak mahindra bank current Account offers strong options for the best Current Accounts for Startups. But other banks also provide some of excellent options. So, take a look at some of the best Kotak mahindra bank current Account Bank Current Account alternatives:

ICICI Bank: iStartup Current Account

ICICI iStartup is a tech-savvy current account offering the following startup-friendly features. Account holders enjoy flawless digital banking with networking opportunities through the exclusive events.

  • Zero Balance for 6 Months: No minimum balance requirement for the first 6 months to help startups in sorting out their cash flow during the initial period.
  • Free Transactions: Free NEFT/RTGS and certain cheque services.
  • Eligibility: Businesses registered within two years of account opening.
  • Digital Tools: InstaBIZ app for payments, trade approvals, and making cardless cash withdrawals easily.
  • Networking: Account holders get access to exclusive ICICI events to meet venture capitalists and investors..
  • Forex Services: Preferred forex rates for import/export transactions.
  • Eligibility: Available for businesses registered within 3 years; AQB varies by variant (some as low as ₹10,000).

HDFC Bank: SmartUp Current Account

HDFC's SmartUp account is specifically designed for startups with advisory and digital services.

  • Zero Balance for 1 Year: No minimum balance requirement for the first year (post-1-year, ₹25,000/month or ₹1,800/quarter fee if not maintained).
  • Free Cash Deposits: Up to a certain limit based on the account variant.
  • Advisory Services: Mentorship from experts and listing on HDFC's Smartbuy directory.
  • Forex and Payment Solutions: This current account supports international trade and digital payments.
  • Eligibility: Business registered within 3 years; AQB starts at ₹25,000 after 1 year.

Yes Bank: Yes Head-Startup Account

Yes Bank's startup account is flexible and designed for new businesses. It offers international banking support with added networking opportunities.

  • No Minimum Balance for 1 Year: No balance requirement for the first year; after that, account holders are required to maintain a low AQB.
  • Free Services: Free cheque payments, collections, net banking, and mobile banking.
  • Startup Ecosystem Support: Yes Bank has partnered with T-Hub and Awfis to offer networking opportunities and co-working spaces.
  • Forex and FDI Assistance: Helps with foreign direct investment and can be used to make international transactions.
  • Eligibility: Business registered within 3 years; low initial deposit.

IDFC FIRST Bank: Startup Current Account

IDFC FIRST Bank is a fintech-friendly option with tech-driven features, also helps businesses in saving money over time.

  • Zero Balance for Up to 3 Years: No minimum balance charges for up to 3 years with BRAVO feature (auto-sweep to FD).
  • Cloud Credits: Enjoy up to $5,000 in cloud credits for website services.
  • Free Payment Gateway: Zero setup and maintenance charges for digital payments.
  • Banking APIs: Supports tech startups needing API integrations.
  • Eligibility: Business incorporated within 3 years with DPIIT certificate; AQB varies by variant.

Here's a quick comparison of key features of the best current accounts for startups in India:

Bank/Account Zero Balance Period AQB (Post-Waiver) Free Cash Deposit Limit Key Perks
Kotak mahindra bank current Account Startup Regular 1 year ₹50,000 ₹1 crore/month Free NEFT/RTGS, home banking
Kotak mahindra bank current Account Startup Premium 1 year ₹50,000 ₹2.5 crore/month ActivMoney, trade services
ICICI iStartup 6 months ₹10,000+ Varies InstaBIZ app, networking
HDFC SmartUp 1 year ₹25,000 Varies Advisory, Smartbuy listing
Yes Head-Startup 1 year Low AQB Varies Ecosystem support, FDI help
IDFC FIRST Startup Up to 3 years Varies Varies Cloud credits, APIs

These Kotak mahindra bank current Account mahindra bank current Accounts for SMEs are specifically designed to support businesses grow.

Choosing the right current account is pivotal for a startup's financial health and operational efficiency. To choose the right current account for your business, you need to carefully analyse your business needs, budget, and growth plans. Kotak mahindra bank current Account Mahindra Bank offers two excellent options: the Startup Regular Current Account for new businesses and the Startup Premium Current Account for growing startups. Their features, like 12-month fee waivers, free transactions, and tools like ActivMoney, make Kotak mahindra bank current Account the top choice for startups. However, ICICI iStartup, HDFC SmartUp, Yes Head-Startup, and IDFC FIRST Startup are also strong contenders, especially for tech startups, networking, or international trade.

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