What is a current account? Simply explained

A current account is something everyone needs nowadays when they are an adult. All payments such as salary, rent or bills are made through this type of account.

What a current account is – the most important things at a glance

In the past, wages were handed over to the employee in cash. This procedure is no longer common today. Salaries are posted to the current account by bank transfer.

• When we talk about a current account, we usually mean your traditional bank account. This is where your daily payments are made and received.
• The term giro means circle. The money in the current account is always in motion. Salary comes in and is taken out again for bills and rent etc. It is an ever-repeating circle.
• To open a current account these days, it is no longer necessary to go to the bank in person. You can do it online from the comfort of your own home. You can find out more about this on the website of the bank you want to open a current account with.
• Maintaining a current account often requires the payment of account maintenance fees. Pupils, trainees and students are often exempt from these charges. But a certain amount of incoming salary can also save the fees. The current account is also the only account with the possibility of an overdraft.