What the bank current account is and what it is for

The bank current account is a useful tool to manage your money. It allows you to make and receive payments conveniently, keep your money safe, and much more. Explore what it is and how it can help you.

What it is

A bank current account is a payment account that allows you to carry out basic payment transactions: depositing and withdrawing money, making and receiving payments, and using payment cards (a debit card – called "bancomat" in Italy – and a credit card). It is called a "current" account because it is designed for the day-to-day management of your money, and "bank" because it is offered by banks.

Like any payment account, every current account is univocally identified by an International Bank Account Number (IBAN). This is the code made up of letters and figures (27 in Italy) that identifies the country, the bank and branch where the account is held, and the account number itself. It works like an address: to send money to an account, you need to know its IBAN, and you must give yours to anyone who wants to send money to you.

What you can do with a bank current account

A current account enables you to:

• pay using methods other than cash: credit transfers, payment cards and cheques linked to your account. You can also ask your bank to make recurring payments, such as utility bills or loan instalments, automatically;
• receive payments conveniently wherever you are: all you need to do communicate your account IBAN to the person owing money to you;
• protect your money from damage and theft: just like the cash you carry in your pocket, the money you keep at home can be damaged or stolen. By depositing money into your account, you avoid those risks.

Current account services

When you hold a current account, you can:

• deposit and withdraw money at the bank or anytime from an ATM (also called a "bancomat" in Italy);
• make and receive credit transfers;
• make payments using cheques and debit or credit cards linked to the account;
• have your salary or pension paid directly into the account;
• make automatic payments by direct debit: the amount due is withdrawn (debited) from your account at the request of the payee you have authorised. This service is particularly useful for recurring payments like utility bills or loan instalments. When the direct debit is recurring, it is known as direct debit arrangement.
• obtain a loan directly through your current account via an overdraft facility (technically called a line of credit on a current account). The bank makes a sum of money available to you, either for a set period or indefinitely, which you can use freely to meet liquidity needs. In exchange you pay fees and interest.
• open a securities account linked to your current account. The bank holds and manages the securities in which you choose to invest, such as government bonds (e.g. BOTs and BTPs), corporate bonds, shares, and mutual fund shares. Any charges and earning from these securities – such as coupon payments or dividends – are automatically debited or credited to your current account.
• rent a safe deposit box to entrust the bank with the safekeeping of your valuables.