Current account
In one sentenceA bank account for day-to-day transactions that you can deposit into and withdraw from at any time by checks, cards and transfers. It usually earns no return.
Simply put
The current account is the business's everyday working account: customer payments and POS settlements come into it, and salaries and suppliers are paid from it.
In the books it appears as a current asset within cash and cash equivalents, and it is reconciled with the bank statement every month.
Example
A trading business opens a current account in its name and links it to its POS terminals and to the Wage Protection System, so card settlements come into it every day and salaries are paid from it at the end of each month.
Don't confuse it with
Savings accountA savings account is for saving and may earn a return, while a current account is for day-to-day movement, usually with no return.