Best Current Account for Startup – A Quick Guide

Last Updated on August 19, 2021

Running a business, especially a startup, is not an easy task. There are many decisions involved, like choosing a proper workspace, hiring professionals, managing finances, opening an account with the best bank for the current account, etc. As soon as startup entrepreneurs register their company, many banks start offering current accounts. It becomes challenging to choose the best current account, especially for a startup. There are many factors to consider while choosing a bank for a current account suitable for your company, like minimum balance requirements, internet banking facilities, maintenance charges, and other facilities.

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How to choose best current account for startup?

For a startup, you should use a separate bank account to maintain all the business transactions, which will make it very easy to understand and maintain your finance. Many banks offer help to young entrepreneurs & startups to grow their businesses. Banks give more facilities with a suitable environment and manage business finances in a simple way, which can reap lots of benefits at the initial stage of business.

While choosing the best current account for your startup, you should consider minimum balance requirements, fees & charges, credit facilities, cash transaction limit, and other benefits. The best bank account will offer you many benefit schemes for starting your company. We have gone through various offerings and selected a few for you. Here are few banks where you can open a current account for your startup.

IndusInd Bank

IndusInd Bank has several current account offerings focused on small and medium businesses. These current account types are designed keeping in mind the flexibility required to boost your business.

IndusInd Freedom Account (Highly recommended)

  • Most recommended current account option for startup businesses.
  • This account can be opened with zero balance, and it offers several benefits for startup businesses.
  • You need not maintain a monthly average balance. This means that the minimum balance to maintain the account is zero. 
  • Other annual charges are also significantly less. There are no charges for cheque books and many other services.
  • The account can be operated through Net banking, Mobile App or ATM. The bank provides its customers with many more benefits and flexibility. 
  • Only one transaction per month is required to keep the account operative.

Indus Blue Current Account

  • Best suited for small businesses, professionals, consultancies and other service providers.
  • Includes all the basic services and benefits with a monthly balance requirement of Rs. 10,000.
  • Free account to account to transfers within the bank 
  • Free collection of cheques across the network.

Pioneer Current Account

  • Seamless banking for day to day business transactions.
  • No charges on non-maintenance of minimum balance.
  • Innovative options to ensure cheques don’t bounce.

Indus Max Current Account

Monthly balance requirement of Rs. 10,000 only ensures you can manage your business easily

IndusInd Bank has several other current account offerings like Indus Prestige, Indus Gold Plus, and Indus Silver. However, most of these current accounts are suited for regular businesses. The IndusInd Freedom Account delivers the best value and flexibility to upcoming startups.


It is one of the most customer-friendly banks, and therefore, it is a great option to have a current account with them for any startup business. 

HDFC SmartUp Current Account (Highly Recommended!)

  • This current account type from HDFC specially caters to startup businesses.
  • The current account comes with a waiver of 12 months for minimum balance maintenance. So it is a significant relief for a startup business. After the waiver period, you have to maintain the minimum balance quarterly. 
  • Some branches of HDFC Bank also offer co-working space for startups. 
  • The bank also provides Internet Banking Service.

HDFC Max Advantage Current Account

  • An account holder can deposit and withdraw cash upto 12 times a month at any HDFC Bank Branch.
  • This account allows unlimited free NEFT/RTGS transactions.
  • If you maintain a healthy minimum balance, you will be allowed 150 transactions for every Rs. 1 lakh of balance maintained.
  • Access your bank account via NetBanking or Mobile app.
  • Apart from the above current account offerings, HDFC also offers a regular current account. Customers can enjoy free cash deposits and access the bank’s services across any HDFC branch. However, their SmartUp offering is ideal for startups.

Axis Bank

It is a leading private sector bank that gives many benefits and facilities to startup companies who open current accounts with them. 

Axis StartUp Current Account (Highly Recommended)

  • The bank provides a 24-month waiver on minimum balance requirements for Startup Current Accounts. 
  • Service charges are also waived off for two years during initial period. That helps startups to manage their expenses. 
  • The bank gives the facility free cash deposits and withdrawals at any of its branches as per the limit. 
  • Zero charges for Cheque books, demand Drafts, or Pay Orders. 
  • Bank provides many more benefits to startup current account holders.

Axis Advantage Current Account

  • Customers can deposit Rs. 3 lakh per month and can withdraw unlimited cash from any branch. 
  • Account holders can go fully digital and perform NEFT/RTGS transactions unlimited times.
  • The monthly average balance requirement is Rs. 25,000.

Axis Classic Current Account

  • Account holder is required to maintain a minimum balance of Rs. 1 Lakh.
  • Customers enjoy a monthly cash deposit limit of Rs. 12 lakh and unlimited cash withdrawals.
  • Unlimited NEFT/RTGS transaction.

Axis Bank also offers various other current account types like Axis Privilege, Axis Normal and Axis Channel One. However, most of these bank accounts are suitable for large businesses. Axis StartUp is the most recommended account type for startups.

Yes Bank

It offers different types of current accounts as per the needs of different businesses types.

Yes Head Startup Account (Highly Recommended!)

  • It is a zero balance current account for startups in the 1st year. 
  • It offers many benefits to young companies in their starting period. 
  • Engaging in partnerships with other payers like T-hub, Indian Angel Network, etc., they provide advisory services to the startup companies. 

With many benefits, the bank offers end-to-end solutions for all banking and digital services.

Business Growth Current Account

  • Business Growth Current by Yes Bank is another offering for startups. The average quarterly balance to maintain is Rs. 30,000. 
  • Customers can enjoy a free cash deposit facility upto Rs. 5 lakhs per month at any branch across India.

Yes Bank offers various other bank account schemes like Business Value Current Account, Business Benefit Current Account and Business Edge Current Account. However, Head Startup bank account is full of benefits for startups and makes an ideal choice. 


ICICI iStartup Bank Account (Highly Recommended)

  • The account is to fulfill the requirements of startup companies and help young entrepreneurs. 
  • It is a zero balance account for the first six months. 
  • The bank provides many other facilities. They offer a unique online business networking platform for their startup current account holders.

ICICI Shubhaarambh Bank Account

  • This current account is also designed for startups.
  • Maintaining minimum average balance is not required for the first six months, after which the account holder must maintain a monthly balance of Rs. 25,000.
  • Offers zero fee debit card for the first year.
  • 100 free cheque leaves per month, free internet banking, free unlimited cash withdrawals.
  • ICICI Bank also offers Smart Business Account and Roaming Current Account which are designed keeping in mind the various needs of businesses. However, iStartup bank account wins the race for the best current account for startups.

Kotak Bank

Kotak Neo Current Account

  • This Current Account helps the new businesses to grow.
  • The average quarterly balance (AQB) required for Neo Current Account is Rs. 10,000.
  • In addition to other benefits, the bank provides an unsecured overdraft facility for short-term requirements. 
  • It has a new feature that converts the current account balance to term deposits to earn a reasonable return on your idle balance.

Kotak Startup Regular Current Account

  • With a waiver of non maintenance charges for one year from the month of opening the account, the average quarterly balance required for this account is Rs. 50,000.
  • Other benefits are also provided in addition to the regular ones like free cheque clearing, free cheque payments and collections across the country.

Frequently Asked Questions (FAQs)

1. Every bank has several branches in my city. How should I pick a home branch for opening a current account for my startup?

Proximity to the branch is definitely an important consideration. It is also recommended that you take time to visit and try to develop a personal relationship with the branch manager because that will take you a long way later when you want to grow your business. If the manager isn’t available, come back with an appointment and have a chat about your startup.

If the manager is never available or a sales agent tries to open your account entirely without having to speak to the manager, that is a red flag.

2. Is it advisable to pay or waive off a few benefits for a dedicated account manager?

Customer service and dedicated account manager is absolutely irrelevant for a startup and all you need is a current account to get going. Do not worry about all that as long as you have the lowest minimum balance to maintain as you don’t want to lock your limited funds.

Options for a dedicated account manager are relevant for large businesses. So, you must consider this as your startup grows.

3. Which banks offer a zero balance current account?

A – Followings banks in India offer a zero balance current account – Bank of Baroda, ICICI Bank, Axis Bank, IndusInd Bank and HDFC Bank.

4. What documents do I need to provide to open a current account?

You will need the following documents – 

  1. Account Opening Form (AOF)
  2. Beneficial Ownership (BO)
  3. Documentation for Entity Proof – (any one of the following documents) – MOA, AOA, Certificate of Incorporation, Board Resolution, PAN Card, Entity Address Documentation- (any one of the following documents), Certificate of Registration, Business Licence issued by state- central govt., Sales Tax 2, IT return Certificate, VAT Certificate, PAN intimation letter, Import-Export certificate, Registration Cert with PF commissioner, Form 18
  4. Individual documentation (Identity Proof – anyone of the following documents) – PAN Card, Driving Licence, Passport, ID cards issued central & state govt., Passbook scheduled commercial bank, Marriage certificate, Voters ID card, Aadhar Card
  5. Signature Proof – (any one of the following documents) – PAN Card, Driving Licence, Passport, ID cards issued central & state govt

5. Should I go for a public (PSU) bank or a private bank for my current account?

It really depends what you are looking for. If you need services and offers, a private bank will be best suited for you. If you are looking for some cost savings on bank charges a public bank is ideal. 

However, almost every major bank’s customer service is equally good these days and the only difference is in Average Balance that you are required to maintain for your current account. Stay away from banks that require you to maintain a higher minimum balance because you will need the funds as a startup and you don’t want to lock your funds right from the beginning or waste your money paying penalties for not maintaining a minimum balance. Before you choose the right bank, check for the option for International Business Debit Card availability (You will need it even if you’ve never traveled abroad) and Internet banking facility.


Make sure to choose a bank that offers flexibility with current accounts. You may not have a good amount of funds to block as a minimum deposit as a startup. It is best to open an account with a bank where the minimum balance requirement is more petite and waivers on transaction charges and other benefits.

Happy Starting up!