How to obtain a current account in Ghana?
A current account is an account which allows for frequent withdrawal without prior notice of the bank. The purpose of a current account is to allow quick access to cash for frequent transactions as opposed to a savings account which is meant to generate returns for the holder of the account. Because of the freedom of withdrawals that are characteristic of a current account, banks tend to charge more for operating a current account and usually do not pay interest on the balance in the account.
When deciding whether or not you need a current account, you have to review your potential banking activity. Do you plan to use the account for your business in Ghana or international? If so, then it is likely that you will be withdrawing money frequently and you will most likely need a current account.
If you plan to use the account as a salary account, then whether you pick a current or savings account depends on whether you intend to withdraw all your salary at once and meet your expenses with the cash pile or you intend to make a withdrawal as and when you have expenses to meet. If frequent withdrawals are what you intend doing then you need a current account.
Another factor to consider in choosing whether to pick a current account is the expectation of returns. Even though the returns offered by savings accounts are nothing to write home about, you still earn some interest that could be significant if you have a large account balance. Yet current accounts generally do not offer any form of interest at all and so you should not consider them if you are interested in capital appreciation.
The rise in internet banking in Ghana has made banking more convenient. Transferring funds from accounts and paying bills and can now be performed without visiting a bank’s branch. However, some of the transactions that can be carried out online are only accessible to current account holders. Therefore, if you plan to rely on internet services, then you’re better off getting a current account than a savings account in Ghana.
The final consideration in deciding whether you should get a current account in Ghana is whether you plan to allow third-party withdrawals. Current accounts come with cheque books which allow the owner of the account to write cheques to be withdrawn by third-parties. Most savings accounts only give account holders savings withdrawal slips which can only be used by the account holders only. Increasingly, the only option available to savings account holders to withdraw funds is a debit card. That is much less flexibility than a current account allows in terms of withdrawal options.
If you need a current account, you have to provide information such as your date of birth, next-of-kin, address and occupation. There are more than thirty banks in Ghana all of which offer current accounts to customers. One is therefore spoilt for choice as far as current accounts are concerned. All you have to do is visit GhanaCompares.com compare and make a choice.
In conclusion, a current account is best meant for businesses, people who perform frequent transactions and those who consider their bank account as a place to hold temporary cash instead of an investment. If you fit into any of those categories then a current account is certainly for you.
Source: GhanaCompares.com blog team
