Yes you do need a business account…Yes, you do. It should be a current Account, for various reasons. First, in Current account , you can issue more number of cheques and the volume of your transactions are not restricted. Next, if and when your income tax Return comes under scrutiny and you are found managing your finances through your savings account, it will be very difficult to explain the Tax officials, the entries not pertaining to business. And if such entries are credit entries, they may add it as your income. Debit entries of personal nature may be disallowed as Expenses. In either case you end up paying more tax.