Current account what is it and how does it work?
It is nothing new that financial services in Brazil are going through a major transformation. And these new technologies are making consumers increasingly demanding, especially when it comes to opening accounts.
After all, what is a current account and how does the service work? Many people know about a current account, but do they know the advantages of having one? Do you know how this type of account works?
For those who don't know, having a checking account is a practical way of moving money on a daily basis. It is a deposit account that can be either free or with fees, individual or joint.
In addition, it is possible to have special rates, depending on the age of the customer. It is worth remembering that the current account can be opened by individuals, couples, families or even companies that have a certain number of transactions with the financial institution.
This type of account includes deposits, loans, investments, withdrawals, statements, among others. Do you want to know more about the current account? In this article you will read about:
• What is a current account?
• Know the requirements for opening a checking account
• Understand how the current account works
• Current account: advantages and disadvantages
• How to find the best bank to open a current account?
• What is a current account?
For those who still have doubts about what a current account is, it is a service offered by financial institutions that guarantee the receipt and deposit of money. This happens quickly and safely for the customer.
It is recommended for those who need to carry out cash transactions frequently, but do not want to carry the amount on hand. You can receive the amount, make deposits and withdraw the money.
It is important to make it clear that no prior notice is required from the customer to the bank in order to move the money. Only in cases of withdrawing large amounts of money, the customer needs to notify the bank in advance.
And unlike other types of accounts, these typically allow unlimited withdrawals and deposits.
Know the requirements to open a current account
If you are interested in opening a current account, be aware that it can be requested by individuals over 18 years of age. In addition to minors between the ages of 16 and under 18, they must be accompanied by their legal guardians.
One of the documents that is frequently requested by financial institutions is proof of income in order to open an account. This could be the work card, internship contract and even Income Tax.
Another question that many people have is whether or not negative people can open an account. The answer to that question is no. Anyone whose CPF is registered as a defaulter with SPC and Serasa has little chance of opening an account.
And this happens because the current account provides pre-approved credit, checks and credit cards to customers. Since the risk of default by the negative borrower makes it dangerous and disadvantageous for the bank.
It is important to emphasize that people with a bad name have the right to open a savings account, regardless of whether it is negative or not. Even though a savings account does not have the same benefits as a current account, this is a good alternative.
Understand how the current account works
This type of account is a modality designed for frequent movement of money, through withdrawals and deposits. It is worth remembering that the person who has a current account at a bank is called an account holder.
Furthermore, transactions can be carried out at any time through internet banking, service points and ATMs.
And there are several essential services offered by this type of account, such as: withdrawals, checkbook, money transfer, monthly statement, bill payments, among others.
A pre-approved credit amount is also available to customers that can be used at any time. In addition to a debit card, which can be unlocked in credit mode.
Anyone with a current account pays a bank fee per month for the services offered. The fee amount varies depending on the type of account and frequency of financial transactions carried out by customers.
The plans allow for a greater number of withdrawals and transfers. Therefore, remember to find out about the service limits of your plan.
Current account: advantages and disadvantages
Like every product and service, the current account also has pros and cons. Advantages and disadvantages that should lead the individual to weigh the best option when deciding between it and, perhaps, a savings account.
The account holder usually receives various benefits from their bank, whether they are an individual or a legal entity. One of the main services is the possibility of using debit and credit cards, with different functions. Furthermore, for these services, the account holder can request the inclusion of additional services, which will be able to benefit from the same options.
There is also a special check for account holders who need support and, in times of trouble, can use this function. However, the overdraft needs to be used with great caution, as if it is not well monitored and planned it can further disrupt planning and the advantage will become a disadvantage.
Other benefits are loans released by the bank, financing, bill payments through applications (internet banking), investments and electronic transfers. The current account brings a lot of mobility.
Interest is the main disadvantage for account holders
Cited as a benefit, the special check can also be seen as a disadvantage when highlighting the level of interest. The fees charged can be around 13%, on average, according to the bank.
Many account holders do not establish prior planning and disrupt their own budget with interest rates that are considered extremely high.
The current account also has other disadvantages such as the maintenance fee charged monthly or annually (at your discretion), more bureaucratic opening - as it requires proof of income, credit request subject to analysis, not permitted for people with a compromised name and others .
How to find the best bank to open a current account?
Currently, there are several financial institutions that allow their customers to open a current account with numerous benefits. But that question arises: which bank to choose to open your first or new account?
This is important information, especially if the person has had a negative experience with any bank in the past and wants to be sure that the new relationship will be different. To guarantee good service and satisfaction, some aspects generally help when evaluating a bank:
• Fees and tariffs;
• Application (banking);
• Claims;
• Loan, financing and investment;
• Cash machine.
Fees and fees: at the beginning of the research to find out which bank is the best, one of the main points to be analyzed is fees and interest. After all, the lower the percentage charged and/or withdrawn monthly, the better it will be for your financial planning.
Some banks have high rates and fees, taking into account some transactions and benefits they offer as support for this. However, it is necessary to balance the cost-benefit factor.
In this topic, it is worth highlighting that some services are essential and mandatory. Therefore, they cannot be charged to the customer.
Application (banking): mobility, flexibility, agility and comfort are essential for such a technological era. There are many who already adopt the automatic debit function or pay bank bills online.
In this way, opening a current account at a bank with internet banking transforms all services into something much more dynamic. That story of needing to go to the branch to make a transfer, check balance, among other functions, is over.
Complaints: what about this bank’s reputation? It's good? In the process of searching for the best financial institution, it is necessary to look for comments and read possible complaints, compliments and suggestions that are sent by current and/or former customers of that company.
Check whether the complaints are old or current and, most importantly, whether they have already been resolved. See if the bank supports its customers regarding possible errors and whether they are frequent. And take all of this into consideration when choosing.
Loan, financing and investment: the services offered by banks should also be differentiators when choosing the best one to open your account.
Draw a comparison of which ones offer loan and financing services, detailing the interest charged and how the application process works – whether it is bureaucratic and whether your profile meets the requirements.
Could this be a future personal demand of yours? Do you think you will pass the bank's analysis? Furthermore, is there the possibility of future investments? What are the rules? Compare everything and check this information.
ATM: is the bank you will choose to open your current account one of the conventional and best-known ones, with in-person branches? Many people who are not adept at technology prefer face-to-face transactions, through an ATM.
The main advantage of an ATM full of features is avoiding queues and optimizing time. The more services an ATM offers, the better. Furthermore, it must be easy to use.
