Business account

7 best business bank account in India (2024)

Jun 30, 2023

Running a business is all about selling your product, and money management. The step to having a strong financial base is to select the right business bank account for your company. You might think that you can also use your personal account for the initial stages.


But you will read in the blog about how business bank accounts can change the whole game with the features and benefits provided by them.

What is a business bank account?


A business bank account is specifically for businesses and is operated under the company name. It is exclusively used to process all business-related transactions. These are almost similar to personal accounts. However, features that can be accessed through a business bank account are much more advanced than those of a personal bank account.


For example, you can make business payments and transactions in international currencies and process bill payments and salary payments. Business bank accounts are available for different business types, like partnerships, sole proprietorships, and limited companies.

Best business bank accounts in India for 2024



1. Volopay


A little different from the rest, Volopay is an expense management platform providing India's best business bank account. 



Key features include


● Multi-currency business bank account


● Global transactions in more the 180 countries


Unlimited virtual cards and access to corporate cards


● Direct integration into accounting software


● Expense management and tracking features 



Fees and charges


● Offers an all-in-one package with access to card features and a money transfer facility. 


● Offers a premium cards plan to access all card features 


● Another is an enterprise plan that gives the user access to all Volopay features.


2. State Bank of India (SBI) Business Bank Account


One of the best business bank accounts in the market is the State Bank Of India. It provides a variety of business bank accounts to satisfy the different needs of enterprises.



Key features include


● A variety of account types, including Regular Current Accounts, Small Business Accounts, and Corporate Salary Packages.


● Easy online banking and mobile banking services.


● Access to a full range of financial services, including cash transfers, NEFT/RTGS transactions, and payment options.


● Savings accounts with competitive interest rates.



Fees and charges


● Account maintenance fees vary according to account type and transaction volume.


● There are fees for issuing checkbooks and financial transfers.

    


Limitations


● Customer service quality may vary across branches.


● Certain services and features have minimum balance requirements.


3. HDFC Bank Business Growth Account


Another best business bank account in India is HDFC Bank Business Growth Account, designed to meet developing enterprises' financial demands.



Key features include


● Zero balance account opening facility for the initial six months.


● Online banking and mobile banking with advanced features.


● Specialized trade and forex services.


● Access to credit facilities, such as business loans and overdrafts.



Fees and charges


● Account maintenance charges are applicable after the initial six-month period.


● Transaction-based charges may apply for NEFT/RTGS transactions and other services.



Limitations


● The zero balance facility is available for a limited period only.


● Additional charges may be levied for certain services, impacting the overall cost.


4. ICICI Bank Business Advantage Account


The next best business bank account is the Business Advantage Account from ICICI Bank is intended to meet the financial needs of firms in a variety of industries.



Key features include


● Tiered interest rates on account balances, offering higher returns.


● Advanced online banking and mobile banking services.


● Customized banking solutions for different business types.


● Access to business loans, trade finance, and other credit facilities.



Fees and charges


● Account maintenance charges vary based on the type of account and transaction volumes.


● Charges may apply for checkbook issuance, NEFT/RTGS transactions, and other services.



Limitations


● Higher transaction volumes may lead to higher charges.


● Certain services may have minimum balance requirements.


5. Axis Bank Business Classic Account


The Axis Bank Business Classic Account is one of the best business bank accounts designed for small and medium-sized organizations (SMEs) and has a variety of services.



Key features include:


● No minimum balance requirement for the first year.


● Robust online banking and mobile banking platforms.


● Specialized banking solutions for SMEs, including working capital loans and trade finance.


● Dedicated relationship manager for personalized assistance.



Fees and charges


● Account maintenance charges are applicable after the first year.


● Charges may apply for checkbook issuance, NEFT/RTGS transactions, and other services.



Limitations


● The zero balance facility is available for the first year only.


● Some services may be subject to transaction-based charges.


6. Punjab National Bank (PNB) Business Standard Current Account


PNB's Business Standard Current Account is tailored for businesses seeking a comprehensive banking solution and is amongst the best business bank account in India. 



Key features include


● Wide branch network and robust online banking facilities.


● Multiple account variants to suit different business requirements.


● Competitive interest rates on surplus funds.


● Access to specialized banking services, including export and import finance.



Fees and charges


● Account maintenance charges vary based on the type of account and transaction volumes.


● Transaction-based charges may apply for checkbook issuance, NEFT/RTGS transactions, and other services.



Limitations


● Customer service quality may vary across branches.


● The availability of specialized services may vary based on the branch location.


7. Bank of Baroda (BOB) MSME Advantage Account


BOB's MSME Advantage Account is designed to cater to the banking needs of micro, small, and medium enterprises (MSMEs).



Key features include


● Online banking with a range of services, including bulk fund transfers and tax payments.


● Multiple account variants for different MSME segments.


● Dedicated relationship manager for personalized assistance.


● Access to various MSME loans, including working capital finance and term loans



Fees and charges


● Account maintenance charges vary based on the type of account and transaction volumes.


● Transaction-based charges may apply for checkbook issuance, NEFT/RTGS transactions, and other services.



Limitations


● Availability of specialized services may vary based on the branch location.


● Some services may be subject to transaction-based charges.

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Why businesses should have a business account?



1. Allows credit payment acceptance


One major reason why business owners choose to open a business bank account is to access the facility to accept credit card payments. Personal bank accounts do not allow the feature until you have a payment service provider.


However, with a business bank account, it is a built-in feature that helps capture these payments conveniently and organized.


2. Assist business growth


A business bank account is your first step towards establishing a relationship with a financial institution. Down the line, when you will require credit for business growth and functioning, this institution will be of great help.


This is because you already have a strong and trustable relationship with it. Plus, when you have to choose between the different business credit line options available, you will have someone to help you through the process.


3. Establishes professionalism


This is not in any rule book, but any business operating on the owner's personal bank account does not leave a good impression. It implies the business is in the very initial stages of establishment where you are unaware that something like a business bank account exists.


Having a business bank account shows that you are serious about the business and its growth. This helps to put your business’s name on credit cards, cheques, payment channels, and other legal documents. It helps to show that your business is legit.


4. Caters to business needs


Business bank accounts are especially created to cater to all business finance and management requirements. Personal bank accounts do not allow or provide any management features that will suit corporate needs.


Whereas business bank accounts provide management features like expense tracking analytics, greater credit limits, salary payments processing, free money transfer to vendors, unrestricted amounts and a number of deposits, and much more.


Related read: Your guide to open a corporate bank account in India


5. Safe & secure


One of the most sought features of a business bank account is the safety and security of funds and fund transfers. As businesses deal with huge amounts and numbers of transactions, it is vital that the business bank account should be tight with security features.


Plus, with a business bank account comes customized debit cards. These cards are also safe with two-factor authentication and other security protocols.

How to open a business bank account in India - Step by step guide



1. Research


Don’t just jump at the first business bank account option you find. Lay down your requirements and research all the banks offering the features you need and more.


Assess your future goals as well and direct your research accordingly.


2. Selection


Amongst all the business bank account options available, select the one that resonates the most with your needs and future growth objectives.


Look for excellent management features, active customer service, easy net banking facilities, credit facilities, etc.


3. Type


Once you select the institution for your business bank account, the next step is to select the type of account.


There are majorly two types of business bank accounts — current accounts and savings accounts. Look at the fees and other charges associated with both the account types and your requirements, and then decide.


4. Documents


Now comes the essential step — collecting all necessary documents. Carefully look at the documents your business bank account provider demands. Here is a list of the basic paper formalities necessary:


● Address and ID proof of owner and partners


● Company registration and GST certificate


● Company address proof


● PAN number


● Certificate of Incorporation


● A cheque to open the business bank account


5. Application


Now comes the time to fill out the application form. Completely fill out the application. Attach every necessary document and provide all information. Be accurate and give as much data as possible.


6. Deposit


Once your application is approved, you are supposed to deposit a certain amount to activate your business bank account. These are very nominal charges, anywhere between INR 2000 - INR 5000.


You can write a cheque for the requisite amount. And done. You can activate your business bank account once your deposit is accepted.

Fuel your business growth with Volopay

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Factors to consider before opening a business bank account



1. Fees & charges


Prior to choosing any business bank account, the first thing to consider is the account fees and charges. There are various account activation fees charged to get a business bank account.


Along with this, many banks waive some charges and allow the user to access some features for free. Look out for those accounts and choose the one that costs you the least but with the maximum possible benefits.


2. Corporate cards


The card feature is another crucial facility to consider when choosing a business bank account partner. There are providers that offer unlimited virtual cards and one physical card for each employee.


On the other hand, some banks offer three virtual cards on every physical card. In short, your bank should give you access to cards to ease spending and making payments.


3. Initial deposit


While considering account fees and charges of account opening, look at the deposit amount required as well.


Research your options and see if any other provider at a lesser deposit amount.


Ultimately, you are looking for a bank that is not rigid with requirements and takes as less as possible to get you started.


4. International fees & charges


Next in line are international transaction fees & charges. One of the purposes of a business bank account is to support international transactions.


So, you are looking for a bank that charges the least possible on international payments without compromising on the accessibility to other features and quality of service.


5. Wide range of network


Banks with only local branches can help you with local or, at most, domestic payments and go only so far.


However, if you go for a bank that has branches pan-India, you can be assured of their credibility, quality services and features, and seamless international transaction support facility.


6. Online portal for transactions


One of the most important features to look for in a business bank account is the facility of a mobile application.


This online portal or mobile application should be able to support money transfers, check account balances, show a list of all transactions and details, and access other features of the account.


7. Account limits


In your research, also look for account limits offered by different bank account providers. In a business bank account, you should be able to hold large sums of money without paying extra charges or being flagged for income tax.


Standard business bank account limit of 15 lakhs of credit transactions each month. Some banks allow INR 6 lakh of withdrawals every month. Choose a business bank account with greater limits and flexibility.


8. Customer support


The business bank account provider you choose should always be available to help you with any emergency or important scenario. Customer support is an essential consideration basis.


You do not want to be stuck in a mess with no way out. Customer support can help you navigate through the platform and access all the features effortlessly.


9. Overdraft facilities


Every business bank account must provide you with overdraft facilities. This means during difficult times, you will be able to withdraw some amount even if your account balance is zero.


However, later you are supposed to repay that amount or pay interest on the withdrawn amount. Still, this is a good way to stay afloat during low tides in the business market.

Why should businesses choose Volopay business accounts?


Volopay is an excellent expense management system build to cater to all business financial management requirements.


Here is a glimpse of what Volopay offers:


1. Easy to open


Opening a Volopay business bank account is simple. Just books a demo, collaborate further with the sales representative and fill out the application for opening the account.


Submit the essential documents, deposit the activation amount, and you have an amazing business bank account at your disposal.


2. Customized corporate cards


Volopay corporate card is famous for their customizable features. You can set spending limits, track expenses in real-time, make payments easily through virtual cards, withdraw money internationally using physical cards, and much more.


3. Hassle-free international transaction


Make hassle-free cross-border transactions through the Volopay platform. You can transfer funds from the Volopay business bank account to the corporate cards.


Then assign these cards to employees and set separate virtual cards for vendor payments. Just enter the amount and currency to make a payment. It’s that easy. Plus, Volopay charges the least possible FX rate on every transaction.


Learn about international money transfer regulations with our comprehensive article. Understand the legal and compliance aspects for a secure cross-border transactions.


4. Track and monitor spending


The Volopay platform has in build features to help you track and monitor all your spending in real-time. You will always be aware of all the withdrawals made from the company funds.


All expense detail is stored in a centric database. You can access it anytime, as it is updated with all the accurate information.


5. Integrate with accounting tools


One of the best Volopay features is direct accounting integration. You can integrate with NetSuite, QuickBooks, and Tally to automate your accounting process.


Every expense made through the platform is tracked in real-time and updated in the accounting sheets as well. Every entry is accurate with the help of auto-categorization and expense mapping features.

All-in-one solution for your business!

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