Can You Use a Current Account for Personal Expenses?

July 13, 2025

can-you-use-a-current-account-for-personal-expenses

Current accounts are meant for simplifying your daily business transactions. They come with higher transaction limits, add-on benefits like complimentary lounge access and feature-rich Debit Cards. 

 

So, can you use a current account for personal expenses? The answer is yes, if you're a sole proprietor and want to do bulk transactions. That said, a current account is designed specifically for businesses and high-volume transactions. For personal use, you can open a Savings Account. 

 

How Does a Current Account Work?

When you open a current account with a bank, they would give you chequebook, Debit Card (may vary based on the current account type), Internet Banking or Net Banking and Mobile Banking details. Current Accounts generally come with minimum average balance (MAB) requirements. Once you make the initial payment/deposit , your account would be active.

 

Do Current Accounts Earn Interest? 

Unlike a Savings Account, Current Accounts don’t earn interest. To get the benefits of higher interest rates on your deposits, you can open a Digital Savings Account or Fixed Deposit.

 

Personal Use of Current Accounts

While it's technically possible to use a current account for personal expenses, it's generally not recommended. Current accounts often come with higher maintenance requirements and fees than savings accounts.

 

Advantages of Current Account 

 

  1. Higher Transaction Limits

    Current Accounts come with higher transaction limits. For example, with Ujjivan’s Business Edge Current Account, you can enjoy up to ₹1.5 lakh ATM transactions per day.

     

  2. Higher Liquidity 

    Another benefit of a Current Account is that you can withdraw cash whenever required. Let’s say you’re in urgent need of cash for your business. You can walk into any ATM and withdraw cash with the designated debit card. Alternatively, you can visit a bank branch with whom you have a current account to withdraw cash.

     

  3. Customised Current Accounts for Different Business Needs

    You have the option to select from different types of Current Accounts. For instance, Ujjivan offers Business Edge Current Account, Maxima Current Account, Regular Current Account, Privilege Current Account and Premium Current Account. Each of these accounts caters to specific business needs.

     

  4. Overdraft Facilities

    In case you need urgent cash for your business, instead of applying for a high-interest personal loan, you can opt for overdraft facility. Check with your bank regarding rules and regulations pertaining to availing overdraft against current account. Ujjivan SFB does not provide current account with overdraft facilities.

     

  5. Add-on Benefits

    Current accounts come with Debit Cards that may other benefits like complimentary lounge access, free cash withdrawals. Additionally, you can enjoy other benefits like free cheque leaves, monthly account statements, non-cash services like Demand Draft, etc.

Final Thoughts

While current accounts offer certain advantages for business operations, they are generally not the ideal choice for personal banking needs. For personal expenses and savings, open a Savings Account. 

 

Simplify your business transactions with Current Account. Open a Current Account with Ujjivan Small Finance Bank and enjoy multiple benefits. Select from multiple.

 

Disclaimer:

The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.

 

Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk.  Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.

 

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FAQs

1. Can I open a current account for personal use?

For personal use, it’s recommended to open a Savings Account.

2. Do current accounts earn interest?

Unlike Savings Accounts, deposits in Current Accounts don’t earn any interest. 

3. What's the main difference between current and savings accounts?

Current accounts are designed for high-volume business transactions, while savings accounts are meant for personal savings. While the savings account balance earns interest, current accounts are non-interest bearing accounts.

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